Land & Modular Home appraisal

[Annaceil333]

We own outright 9 acres of land with a pond and a 30x80 pole barn shop with 6 garage bays. There is an old manufactured home valued on our tax record for $6,000. The house was from 1973 before HUD standards so if we go to sell at any time the buyer could not get financing even if it is fix quite nicely.

We are considering putting a modular home, on a new foundation in place of the old house.

• The cost of the new modular is $165,000, including basement and front porch.
• On tax records the land and building are valued at 120,000. B

• My question is in most cases does a set-up like this appraise close to the price of the modular home, then plus, value of the land? Thank you!

We don't want to buy a modular home once it is on our land the value go down $20,000.

 

[NORTON]

like any real property valuation, it's primarily based on what your market area has demonstrated in the past, which will allow an appraiser to determine a likely current value.

u need to remember these simple concepts;

cost does not equal value, if it did, people would never stop improving their property because they would be assured every dollar spent would mean the same dollar of return, no matter how useless their improvements were.

price does not equal value, just cause someone overpays doesn't mean it's considered a wise and repeatable action.

fannie mae specifically states that property values shouldn't be concluded by simply by adding land value plus home purchase price

hope it helps

 

[Jo Ann Meyer Stratton]

Before you purchase the home, verify which building code is being followed in the factory while under construction.

If the building code is the same as your local building code for site built homes, it is a modular home. When the home is complete, a state or local inspector will affix specific tags/labels/documents applicable for your state somewhere outside or inside the home. If the structural support for the modular home is a steel undercarriage/chassis it will not be eligible for a Fannie Mae mortgage. It will be acceptable for Freddie Mac, FHA, USDA and VA.

If the building code is the Housing and Urban Development code for manufactured housing, it is a manufactured home and there will be a HUD label on the exterior and a Data Plate (letter sized piece of paper with a map of the USA) some where inside the home. If the mortgage will be FHA, VA or USDA, there are very specific FHA, VA or USDA requirements regarding the installation and foundation in addition to what ever is required locally or by your state. Since many lenders are drawing back from loaning on manufactured homes, the choices for mortgages may be limited.

Regardless of what type of factory built home you have, market value will be based on what similar typical properties that have been offered in the open market. That does not include builder/dealer sales as they typically are not arm's length transactions. Hopefully, the appraiser chosen is very knowledgeable regarding all the quirks and differences of appraising factory built housing.

 

[sputnam]

Hire a local appraiser to provide the answers. No appraiser can really tell you without doing the appropriate research.

 

[Lobo Fan]

$165K for a modular sounds very hefty even with a basement. Be careful about over doing the options and upgrades.

 

[JTip]

9 acres, sounds rural.

$165k would be about right IN MY SPECIFIC MARKET AREA WHICH IS ABOUT 1,200 MILES AWAY (getting Mike style on you).

Excavation, poured foundation, private well and sandmound (rural w/no public utilities), drop a $100k retail mod on it......

 

[Mountain Man]

You can get a nice site built or engineered home for $165,000. Why go with a wobbly box that is over priced from the dealer?

 

[Papoua Jose]

Why go with a wobbly box that is over priced from the dealer?

Instant gratification?

Odd thing, I recall many modular homes that took as long or longer to be 100% complete as would have had it been site built.

 

[Mountain Man]

Instant gratification?

Odd thing, I recall many modular homes that took as long or longer to be 100% complete as would have had it been site built.

Could be. When I built our house it took weeks to get permits... only took 1 week for a foundation and 2 days to have the whole thing framed up and as a shell unit. Used engineered floor trusses and truss roof. Whole thing strapped together is stronger than a crew of hammer slingers pounding on wood. Six months later we were moving in. Building isn't hard, it's just about knowing good subs and making sure everything stays on schedule. Builder are basically professional baby sitters... LOL

 

[CANative]

It sounds like the OP is deciding whether or not he can increase his profit on a sale by adding a new house.

If that's the case the OP needs to hire an appraiser to do a consulting assignment.