I Knew It Was Bound To Happen!

[Justin Czerniak]

I came across something like that, what a pain it was.
I called it modular it was 2 floors (sections) and after a trip to the county a call to the state and a title report still no information. when I ended going to the county and because there was a sight power permit and no site prep permits they told me that it had to be sight built. I was still not sure so I used stick built and manufactured home comps.

 

[VolcanoLvr]

Ray....

All the info so far is good.

Park Models have 399 s/f GLA or less by law, as the basic dwelling that leaves the factory. Typically these are 1BR, 1BA homes. Most are built right up to the max allowable GLA.

They are typically used as cabins, vacation homes, etc., and in senior housing. Many have additions put on to increase living space.

They are not 'modular' homes to my knowledge, as they have a steel frame foundation and are not built to UBC codes. Modular homes typically have a typical wood joist floor structure, are moved to the site on special trailers in one or more sections, and are placed on a standard foundation.

Visit some RV dealers in your area & see if they have some free magazines or newspapers, especially the trailer versions. Often you'll find ads for Park Models. And by all means tour some of these homes on dealer lots.

Comps.....use this same style of dwelling especially in resort areas, paying attention to the GLA s/f. A 'park model travel trailer' is not the same animal, as it's only 8' x 36 feet or so, some with 'tip outs', which is less GLA than the Park Model home we're discussing. And these have wheels/axles still attached. They aren't built as well.

I have done PM appraisals, and own a travel trailer.

Dave

 

[George Hatch]

Long time lurker, first time poster (here, anyway)

I have an assignment to appraise an RV park where they are converting from an all-recreation use to a 70/30 use with the rental of spaces on a year-round basis for these things representing the 70%. I had never seen one of these before, and although my assignment doesn't include any of the units I wanted to see what the difference was between these and mfg homes.

Anyone have an idea of what one of these should retail for? The same people who are running the RV park also own a dealership for these things.

http://www.athensparkhomes.com/royal.html

They're telling me that by the time they get done with tax/license and setups they retail is around $100k. That seems way high to me when compared to mfgs I've seen.

Like I said, the units themselves aren't necessarily a factor in my appraisal of the park, I'd just like to know what I'm talking about when I refer to them in my report.

 

[Otis Key]

George,

I don't know what your prices are like out there but I just finished an appraisal that included an on-frame modular by Karsten that was new & 2,232 sf. Full purchase price from the factory showed over $107,000 plus tax, insurance, etc. Does that help any?

 

[VolcanoLvr]

George....

As noted in my message above, I would recommend you contact some Park Model dealers in your area to find out suggested retail prices. These are typically sold at travel trailer/5th wheel dealers and some at typical manufactured home retailers.

(I'm presuming you're talking about Park Models. Your comment says 'RV Park' which can include various types of mobile homes, manufactured homes, travel trailers/5th wheels, and Park Model homes, depending on how the park is set up.)

As I noted, Park Models are limited to a max of 399 s/f by law, and are not classed as a Manufactured Home. Most I've seen are built similarly to MFG homes from the standpoint of finishes, but I'm not 100% sure if they are built to the HUD or UBC codes, if either. [Does anyone else know??]

Some of the retail prices I've seen start in the mid-$20K's and go up from there.

Dave T.

 

[George Hatch]

Thanks, that squares with what I've been able to find about them. There's an article floating around that talks about them and says the prices range from the mid $20s to the mid $50s, depending on options, which sounds about right when considering the sizes involved. Parts is parts, right?

I just figured when this entrpreneurial type was telling me their dealership was selling these for $100k by the time all the taxes and setup were paid that it seemed like an awful lot for what these folks were getting. Now I know.

 

[Jo Ann Meyer Stratton]

Park Models are NOT built to the HUD building code and they are Not built to any site built building code like UBC, BOCA or CABO or any other site built building code. They are built to what ever the motor vehicle department of that state requires. This lack of a residential building code is what prevents them from obtaining typical financing.

They can be as well or better constructed than a home built to any residential building code, be more elaborate, more amenities, etc, etc, etc--but because of their size and lack of residential building code they are in a category all by themselves. They are NOT used as "campers" to be hauled from site to site but are designed to be permanent residences for year around living. Their size with all the amenities is what is appealing to snow birds, a single person or a couple. When they are located in a park specifically designed for them or smaller manufactured homes, the appeal is that all the exterior landscaping, recreational facilities, amenities, security because of the on site managers, etc. Therefore they can be unoccupied while the owner is in another location--and their home is secure.

The $100,000 price tag would be more for the amenities/management/security of the park than for the home itself--which in some prime locations could be 50 to 70% or even more of the total sale price.

 

[VolcanoLvr]

Inquiry for Jo Ann or any other experienced appraiser:

The phrase "horizontal property regime clauses" has been mentioned.

What does that mean?

I have condo properties up here in NW WA where in some cases the lot under/around the dwelling is owned by the home owner, and in other cases by the association.

We have PUD's where the entire building site is owned by the prop. owner, but there is a HOA for management of the entire subdivision, roads, swim pools, common areas, etc.

By the way, Jo Ann, thanks for your thorough explanations!

Dave

 

[Jo Ann Meyer Stratton]

A property located in a subdivision that has a "horizontal property regime" clause in their CC&Rs would mean the home owner only owns the air inside the unit itself. Some people use the expression of paint to paint or drywall to drywall. The wall framing of the exterior, exterior walls and siding, roof, and everything else belongs to the homeowner's association. Repairs, maintenance, changes to the structure, etc, etc, is the responsibility of the homeowner's association. In Arizona, that phrase means the property is a condo and the report would need to be completed on the condo form. Although I understand there are some recently developed subdivisions in the state that do not have that clause in the CC&Rs but are still considered condos.

A subdivision that does not have that clause in the CC&Rs but has a mandatory homeowner's association fee for something, even it is only for a patch of grass at the entrance would be a PUD.

 

[Mike Boyd]

If you own the land under and around the house it is a PUD, assuming there is an HOA and maybe amenities on another site which may be owned by the HOA. If you only own airspace, it is a condo. Zoning does not guarantee it is a condo, it still might be a PUD.