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Manufactured Home As Personal Property

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Overimprovement

Senior Member
Joined
May 31, 2017
Professional Status
Certified Residential Appraiser
State
Kentucky
I'm considering a request to appraise a 2002 MH only (no land). Obviously this would be a personal property appraisal. Does anyone know of any useful alamode forms for this? Everyone I looked at appears to be real estate focused.

Also, there are no parks in my area from which to pull comparable sales of MH's only, so IF I did this, would simply using a NADA report for this specific home, adjusted for condition, specific features, and accessories be enough for a credible report in your opinion?

One thing that bothers me--these reports seem to value the homes 'in place'. It seems that in a lending scenario, the intended use of the report is collateral valuation, but in the case of a manufactured home loan that goes into default, these values would SEEM to ignore things like disconnection from utilities, re-installing hitch, wheels, etc, and transportation to another site. That can easily add several thousand pretty fast. It's not like repossessing a car where you just drive or tow it away at nominal costs.

Has anyone done these that could shed some insight into these concerns? Or am I thinking too hard again?

Thanks!
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Careful now.

In PA you would need a vehicle appraiser license.

.
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Sounds like a 'pay day loan' type of client.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I think you are asking the right questions...here are my questions: A) Is this order for a steady client, or for a random client /first time client? If it is a first time client, do you expect repeat business,?

for a one off fee /random client, imo not worth it the digging you would have to do to figure this assignment out. Also, no matter who the client, as it is your first one, there is a competence issue...

If you intend to do the assignment, perhaps if someone here has done such a report you can offer to pay them for the sample as a guideline.
 

Overimprovement

Senior Member
Joined
May 31, 2017
Professional Status
Certified Residential Appraiser
State
Kentucky
I think you are asking the right questions...here are my questions: A) Is this order for a steady client, or for a random client /first time client? If it is a first time client, do you expect repeat business,?

for a one off fee /random client, imo not worth it the digging you would have to do to figure this assignment out. Also, no matter who the client, as it is your first one, there is a competence issue...

If you intend to do the assignment, perhaps if someone here has done such a report you can offer to pay them for the sample as a guideline.
They are a good client, but I wouldn't lose business if I said no. I have done many MHs as real estate, the only real difference I see in doing as personal property is a heavy reliance on cost approach, which I am comfortable with, though I would lean toward NADA over M&S, since they break down to the individual model, and its more like NADA for vehicles.

I am hoping the cost (PP appraisal AND separate land report) will persuade the borrower to just go ahead and convert--where we live, the MH gets taxed as personal property anyway, at about the same rate, so taxes would not change much.
 

Overimprovement

Senior Member
Joined
May 31, 2017
Professional Status
Certified Residential Appraiser
State
Kentucky
Sounds like a 'pay day loan' type of client.
It's a regular bank that I do business with. The problem is that the borrowers around here, for whatever reason, have never converted their homes to real estate, then down the road decide they want to borrow against them. I actually get this request a few times a year.
 

Overimprovement

Senior Member
Joined
May 31, 2017
Professional Status
Certified Residential Appraiser
State
Kentucky
So....how does that work.......'convert' to real estate.....magic wand?
Perhaps that's just our local vernacular, but it simply means turning in (surrendering) the MH title to the local clerk of court, who then notifies the local property assessor that the manufactured home is now real estate, and not personal property. It is just pushing paperwork really.

This is more common in MH parks, where someone owns the actual home, but not the land, so the MH is never actually real estate. Unfortunately, there simply are very few of those in my neck of the woods to pull non-real estate MH comps from.

I'm curious for those in different parts of the country, how are MH's classified? Are they automatically real estate?
 

CindyR

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
Similar process here. The owner surrenders the title to the dept of motor vehicles and the manufactured home becomes part of the 'real estate'. They record an Affidavit of Affixture which shows the property is not a permanently affixed unit. The recorded document shows the MH serial number and info.
 
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