Effective age of MH

[CMA28273]

I got an AMC giving me heck for the second time regarding my remaining economic life. The cost approach was done per Marshall & Swift and the total economic life for an average MH is 30 years. The age of the MH I'm appraising is built in 1991 but has been maintained and had some renovations therefore my effective age was 6 years (giving a remaining life of 24). The AMC is saying they are not going to be able to do the loan and going to require another appraisal unless I come up with a total remaining life of 30 years (as a result of the loan being for 30 years). Obviously they are influencing my opinion, but is this just a formality and I should just get it done or stick to my guns????

 

[Mr Rex]

Singlewide or Doublewide? Average life for average doublewide per M&S is 40. Since there are many singlewides from the 1980s (and some 1970s) still around, I don't put too much emphasis on M&S.

 

[CMA28273]

It's a double wide. I'm looking on page E-18 for average built MH. I didn't see any categorization for single vs. double (only MH and MH housing parks). Can you give me the page in MS? My reconciliation was indeed cost approach was given little weight and reiterated this as a first response, but I will change it to keep from holding things up.

 

[CANative]

To expand on what Rex just posted (with which I totally agree) if you're just doing a math calculation then you're doing it wrong. It's about the market. Average life span is just that. It's based on a wide range of statistics, market information, non-market information, etc. It's just an aggregate and shouldn't be relied upon for a specific home in a specific location.

Tuesday I inspected a property in an area I hadn't been to in a while and took a road that I hadn't been on in years. I notice an old mobile home and recalled that I had appraised it about 10 years ago. It was over 30 years old then. Now it's well over 40 years old. POS then and still kind of a POS. But it still had people living in it and paying rent. It's in an area with a lot of POS mobile and manufactured homes.

In other words it is still functioning for the purpose for which it was designed. And that's the question you're answering when you estimate REL... How much longer will it likely continue to function for the purpose for which it was designed. 30 years is just as good an estimate as 24 years.

 

[Mr Rex]

It's a double wide. I'm looking on page E-18 for average built MH. I didn't see any categorization for single vs. double (only MH and MH housing parks). Can you give me the page in MS? My reconciliation was indeed cost approach was given little weight and reiterated this as a first response, but I will change it to keep from holding things up.

I'm looking at an old M&S. Manufactured homes are in a chart with other Single Family Housing.

 

[glenn walker]

It will last a lot longer than 30 years , even though you and I may not want to live in it , I would comply and move on : )

 

[Doug Wegener]

That is not a hill you want to die on.

 

[Terrel L. Shields]

The remaining life is probably as you say and any 1991 model may be maintained for 30 more years but I'd bet it contributes no real value to the site after another 20 or so. Go look for a 43 year old unit (built in 1971) and you will see the problem. Most 1971 units are in a salvage yard and the ones that are not have been maintained above average. I agree with your assessment of its age.

 

[Alpine]

If your version of M&S says the total economic life is 30 years, but the predominant mortage loan is 30 years, how can anything but a brand new doublewide get financed?! Are they still building tin "trailers" in your market? In my neck of the woods, by 1991 they were manufacturing doublewides with 2x6 walls, heavy-duty trusses on 4/12 or 6/12 roofs, vinyl windows, and full drywall interiors, and placing them on concrete runners and piers with split-faced block skirting. I can show you dozens of them that have been maintained, re-roofed, and updated, have an effective age of about 10 years, and would be in decent shape in another 30 if no one did anything more to them than keep the roof clean and paint the exterior every ten years. I can also show you dozens of 1990s double and triplewides that are selling between $200-300,000 with a few acres and a garage/shop, and will be going strong competing with site-built homes in another 30 years.

I grew up in a house built in 1812 (of timbers recycled from a previous house), and it's still looking pretty good. So what's its total economic life? I recommend you take a new look at the cost approach...

 

[CMA28273]

Thats Awesome Alpine. Now Go Back To Bed.