Manufactured Home Converted to Real Property.

[medinaappraisal]

Hello,

I accepted an assignment in Baytown, TX of what appeared to be a typical SFR. Upon my arrival I realized that it was a double wide manufactured home with a brick skirting. After meeting with the home owner he explained to me that he filed a Statement of Ownership and Location, (of which I have received a copy) which basically declares the manufactured home REAL PROPERTY, even the ID tag had been removed. The subdivision of the property is of homes in similar situations, manufactured, but with only one sale in the last year of a typical remodeled SFR with a concrete slab foundation and built in garage. I have studied the local market and can't determine a justification for the adjustments I want to make - NO SALES. In your opinion would the adjustment be in "Design" versus a typical SFR or in "Quality of Construction", or both?? How drastic ??
Thanks...

:new_newbie:

 

[Blueprint]

You are saying that you want to compare a Manufactured Home to Stick Built Homes? Those are two entirely different animals that I would not consider as comps whatsoever. Was the compliance certificate also removed??

The fact that it is considered real property means most likely that it has been permanently attached. That does not change the the type or quality of improvement that it is.

 

[Blueprint]

NO SALES

Are you saying you have absolutely no manufactured home comps whatsoever?

 

[medinaappraisal]

Absolutely None within the last 2 years. I understand that I am comparing apples to oranges but there are no more apples... Stagnant Market..

 

[Blueprint]

Ouch. Absolutely none in all of the surrounding Baytown markets??? You have looked through Pub Recs also? I would personally turn it down as would never want to have to defend an appriasal like that in court.

If I had to adjust, it would be in quality. The closest way I could come up with an adjustment would be to determine the differences in costs.

 

[Tim Hicks (Texas)]

There have to be manufactured homes sales somewhere. The term "real property" has nothing to do with the fact that it is a manufactured home. All manufactured homes attached to land in TX are certified as "real property." Otherwise, the manufactured home would be considered "personal property."

Expand your market area to include manufactured home sales from othe areas in the county if you have do so. If you lack the competence to do this assignment and utilize the 1004C form, inform your client and withdraw from the assignment.

 

[David Sawyer]

In reading all the prior postings in the forum, everybody states very valid points. It is a MH and better have at least two MH comps. Your question as to the adjustment of frame vs MH, it would be for quality. Remember, if it looks like a duck, quacks like a duck, then it must be a duck!

You said no MH sales in two yrs. How about pending/ actives? Check public records since in our area the realtards do not know the difference in their MLS listings

 

[Mztk1]

Any MFH sales since August of 2005?

Could it be a marketability issue. I mean, that is perceived as a hot bed for hurricanes, about where Katrina hit. Who would want a trailer there?

 

[Restrain]

The problem that I see is that there are significant restrictions on mfg homes along the Texas Coast, both from building restrictions and insurability.

I would take a long look at such restrictions, their affect on marketability, etc. That may be why there are no sales - can't get insurance or financing.

Also, have you called your lender and told them what you're looking at? This may well be a no-go for them. BTW, if you haven't found it, the Texas Dept of Housing has a website location that tells you when the home was converted, etc.

 

[Jo Ann Meyer Stratton]

Since it was originally constructed in a factory to the HUD building code (if it was constructed after June 15, 1976) the 1004C would have to be used. The conversion to "real property" was only for the purpose of taxation as real property, not personal property. Once originally constructed in a factory, it remains a manufactured home or prior to June 15, 1976, a mobile home. What remains of the factory built building? If the steel chassis, original exterior, interior and roof framing is still there--it is still a factory built building, not a site built building no matter what they have done to it.