Manufactured Home Has An Addition

[jan cajar]

do I still appraise it as a manuafactured home or is it now modular?

 

[Jo Ann Meyer Stratton]

Once a manufactured home---ALWAYS a manufactured home. The manufactured home was constructed to the HUD building code that went into effect June 15, 1976 (if it wasn't, you have a big problem). The addition was constructed to whatever site built building codes are in effect for that specific site (if there are any). So you have an apple and a potato--two completely different categories. When you measure the subject be sure and measure the manufactured home and the addition separately. In your sketch in the report, indicate which is the manufactured home and which area is the site built structure. On the sales comparison grid show the livable area of the manufactured home in the GLA line. Show the site built addition area in a different line like in patios or other for example. Find comparables that have site built additions--compare the manufactured home to other manufactured homes, compare the addition to other additions--apples to apples and potatos to potatos.

And if the loan will be purchased by Fannie Mae or Freddie Mac be sure and complete the 1004C. If a FHA loan, have a requirement for an inspection of the foundation by a licensed engineer. Also depending on the regulations and laws of the subject area--the addition might need to be approved by a state agency regarding HUD code homes. Or the addition might need an inspection by a licensed engineer or contractor to determine if the addition is creating any stress on the structural integrity of the manufactured home.

Always remember the original construction code in the factory is what identifies a factory built home and that original construction code can never be changed. Any changes to the structure after it leaves the factory could have an effect on the structural integrity of the unit.

 

[Pamela Crowley (Florida)]

PLEASE pay attention to Jo Ann!!!

Whole forum section dedicated to appraising MH:

http://appraisersforum.com/forum/index.php?showforum=24

 

[Big ole Boy]

Stick with similar age and original widths:

I compare "manufactured's with additions" with other "manufactureds with similar original foot print and adjust all comps up if I have to - I would rather not bracket and stick to apples to apples.

So if its a single wide - stick with single wides

If is its a small 24' wide then stick with similar width homes.

Original width (original foot print) sales then + for add-ons using estimated cost to replace add-on and discount it - for market resistance.

Or,

Bracket it with a larger manufactured home which is clearly superior to the subject.

 

[Nancy in Friday Harbor]

Jan,

JoAnn is the A#1 expert on MH.

One caution that hasn't been mentioned.....here in Washington State, IF a HUD code (manufactured) home has been altered in any way, ie a door cut (or enlarged) in the side for that addition, the Dept. of Labor & Industries has to inspect and OK the modification. You don't say where you're located, but you might want to check with your local building department--they'll know what state/local office has authority over HUD code homes.

Nancy

 

[Danielle Calabrese]

Yes in many areas manufactured building code is based on the fact that the units are constructed in a controlled enviroment. Most insurance companies won't even insure a manufactured unit that has been altered. I would also double check with the HO to see if the alterations where inspected. I have ahd several instances where home owners have provided us with state issued proof that they have ahd the unit upgraded to meet modular code.

Jo Ann could not be more on the money.

 

[Jo Ann Meyer Stratton]

A manufactured home cannot be "upgraded" to a modular home. It may have been reconstructed in some way so that that on site construction meets the applicable site built code but the bone structure of the unit remains a manufactured home. That bone structure was originally constructed to the HUD building code in the factory and that cannot be changed unless they completely remove everything--walls, floor, roof, plumbing, electrical, etc, etc and completely start over from scratch. Adding a sheet of dry wall or installing a new kitchen sink or adding a new electrical box does not change the original building code.

 

[Danielle Calabrese]

Not an "off frame" but an "on frame" changes in the structure such as load bearing and roof in my area. Code is not quite as strict here as I have seen in some areas. Home owners have provided documents from code inspectors stating such. Yes the core may still be manufactured however as far as local building authorities go it is modular making. Now with a higher tax value and lower insurance rates. Although it is my opinion that when I have seen this done it really only impacts age and depreciation.

 

[Jo Ann Meyer Stratton]

The HUD building code is a national building code. Although those physical changes may be approved for local taxation and assessment purposes--for financing purposes it is still a manufactured home. If originally constructed in the factory to the HUD building code it can never be an "on frame modular home" not matter how much the local authorities approve it or how much documentation they provide. On frame modular are originally constructed in a factory--once they leave the factory any thing can be done to the home which would need to be approved by any applicable local authority. But a manufactured home doesn't have that leeway--as I stated earlier, once a manufactured home ALWAYS a manufactured home for financing purposes.

So if you have a home that was originally constructed to the HUD code in the factory, it should be reported in every appraisal report as a manufactured home regardless of what the homeowner, lender, local building and zoning departments, assessment agencies, insurance companies, etc, etc, etc say. Even if they have a stack of documents 10 feet high saying it now meets local requirements--the original building code followed in the factory does not change. And if that original building code was HUD it is a manufactured home. The report will need to indicate manufactured home, a 1004C attached if for Fannie Mae or Freddie or if FHA the manufactured home info on page 4 of the VC sheet and a requirement on page 5 of the VC sheet for an inspection by a licensed engineer regarding the foundation. Also any and all local information should be provided--but it still remains a manufactured home!

 

[Danielle Calabrese]

Although it is my opinion that when I have seen this done it really only impacts age and depreciation.

This was not meant become a disagreement.

As for underwiting standards (conventional only) an on frame modular is considered manufactured and is to assume the same risk standards as such. Off frame however assumes the same risk factor as stick built. This is always the case for secondary marketing anaylsis.