HELP WITH MODULAR HOMES.

[mbrunson]

Working on a file that was originally ordered as a conventional sale of a single family residence. Initial research indicated the subject was non-converted manufactured housing. Informed the client that the appraisal would be completed "subject-to" proof that the subject had been converted to real property and is recognized as such by the county.

Both the LO and Agent were suprised. (no comment) :roll:

Agent then came back and said the subject was modular not manufactured. Okay, my issue remains that the county assessordoes not recognize the imporvement, which indicates to me that the county considers it personal property.

I am familiar with the process and additional info necessary when appraising manufactured homes converted to real property. What if anything different must I watch for and/or include if the subject does in fact turn out to be modular.

Thanks in advance for your response.

 

[David S. Roberson]

mbrunson,

Have you inspected the property yet? Odds are that it is, in fact, manufactured. All double-wides are "modular" in the eyes of real estate agents. Sells better to unknowing buyers.

 

[Jo Ann Meyer Stratton]

The most important piece of information that you will need to verify is the building code. If the original structure was built to HUD building code--it is a manufactured home no matter what has been done physically or in the paper work. And if anything was done physically, check to see what your area's requirements are for inspections by the appropriate agencies. If a HUD code home, than whatever paper work your area requires for it to be taxed as real property would be a condition you would make in your appraisal, reqardless of the type of financing. Then if it is being financed FHA, it will require a very specific foundation and perimeter enclosure--either masonry, concrete or pre-treated wood. And will have to have anchors attached to the concrete foundation supports. It will also have to only been moved once from either the factory or dealer lot. If not FHA, Fannie Mae and Freddie Mac are not so specific about foundations, perimeter enclosures and anchors.

If the original structure was built to a site built building code like UBC or CABO or BOAC, then it would be a modular if constructed almost 100% in a factory and delivered to the site either on a trailer or Arizona has modulars on steel under carriages built by Cavco in Phoenix and Silvercrest in California, which are towed to the site. If built to a site built building code then it is considered a site built home for financing and usually real estate taxation (depending on the laws in your area).

My article in the October 2001 issue of the Appraisal E Gram on the http://www.naifa.com website might be helpful.

Oh by the way, if the original structure is a mobile home constructed prior to June 15, 1976 then you have a whole new set of problems. And it would still be a mobile home no matter what has been done!

 

[Bemis Pownall]

Did it look like this?


http://community.webshots.com/user/avidpo


Way to go call it like it is and read up on Fannie Mae 0202!

 

[Roger]

Did the borrower own the site before the residence was placed there?

Assuming this is in a rural area or outside of an incorporated city, are there any local building codes or zoning in effect? If codes and inspections are in effect, the Assessor typically gets the data from the inspector that a home has been placed on the property. If there are no codes or permits needed, the assessor doesn't know it is there until he drives by it.

I have run into this a couple of times, where the land owner places a new manufactured/modular on a site, and the local assessor has no record of the residence being placed on the property. It does not go on the real estate tax role until the assessor discovers it is there.

Of course, it really P.O.'s the owner if you report it to the assessor, and then property taxes rise greatly.

 

[Jeff Horton]

This probably has no bearing on your on situation but Alabama Board has some rules that I was just made aware of. Basically it says that if it has a permanently affixed to the land we are to appraise it as Real Property. If there is not then we have to appraise them as Personal Property using the NADA method.

After reading I finally decided that basically that if they are "tied down" they have a permanent foundation. And unless I am mistaken that the last few years they have required them all to be tied down.

 

[Richard Carlsen]

If it is taxed as real property, i.e. receives a tax bill with an SEV, etc. it has taken on the characteristics of real estate and is no longer considered "mobile". You also should check to see that the tongues and the axles have been removed. From there on out, it is not considered personal property but real estate.

The alamode Manufactured Housing Checklist addresses this very well. I have not had a question on footings, foundations or if subject is real property since I started using it a couple of months ago.

 

[Ted Martin]

Hey Jeff,

What is permanently attached? I know of nothing that is permanent, everything seems to change although some changes are faster than others.

I use the term site built concrete foundation since I've never found a definition for permanent that seems appropriate.

 

[Jo Ann Meyer Stratton]

Kansas Appraiser:

Exactly my point! What is permanent? After watching all the 3,000 to 4,000 square foot concrete block homes that were in the way of the freeway go down the road, I have to chuckle when ever a lender starts worrying about a manufactured home being moved. Why don't they worry about site built homes being moved? There was a very good market for "move ons" in the Phoenix area since freeways are just now being constructed. It would amaze me how they could pick up a 4,000 square foot block home, move it 50 miles, set it back down exactly on a concrete slab and if I got there after the exterior had been stuccoed, the only clue that is was a "move on" was that the bottom row of ceramic tile in the shower wasn't the same as the walls! Opened the door of a furnace room one day of a home that looked brand new, complete new exterior stucco, new dual pane windows, new interior with new flooring, new paint, new kitchen cabinets, new applicances, etc. However they forgot to remove from the wall, the maintenance records for the furnace for the original house-went back to 1960! Also the bottom row of tile in the master shower didn't match the rest of the shower. And then there are those over one hundred year houses in excellant shape with pier foundations under neath the floor and no perimeter enclosure. Lenders worry about the wrong things for the wrong houses! I appraised six different houses in six different parts of the county, some 25 miles apart at six different times. Originally all six had sat in a row on one street in the path of the freeway. I was about ready to start asking every owner which house on Beardsley had their home had been?

 

[Tim The Enchanter]

Jo Anne,

That's got to be a large 8O and expensive 8O 8O undertaking to move that size of a house. :lol:
Without damaging it much either.
Obviously beats demolition, or it would not happen I guess.