Manufactured Home - No Comps

[Noreen]

IMHO, it would be highly misleading to compare an MH in a rental park to an MH on 1.3 acres.

I hear you... sometimes the mental gymnastics of this profession are exhausting!!

 

[CANative]

I would sooner go 100 miles out and 10 years back before I would put park comps in a grid for a fee simple property.

 

[Pilgrum]

There are ALWAYS comps. Look further back in time and/or over 1 mile. Just explain, explain, exp[lain.

 

[Johnny Knucks]

I absolutely agree about using low quality stick built or modular homes. That's what I gave them in the original appraisal. I made appropriate adjustments where necessary. There are two recent sales of newer manf homes in trailer parks at price points similar to base price of the manf home to be installed on subject property. I can make the adjustments work, except when I capitalize the ground rent it sends the net and gross adjustments thru the roof. I am of the same mindset not to do this, however if I made them comps 7 and 8 they are only support comps, right? If I decide to include them it will only be after I get a letter from the lender saying they will accept such comps, of course.

Going back further in time is also a good idea, however I went all the way back to the beginning of 2011. Nothing, just one home which claimed to be a DW but was brick front on a concrete foundation. Built in 1960. Tax records say it's a standard unit.

I also want to call the local manf home builder again. That's my last option.

 

[CANative]

How is the MH builder going to help you? Tell you that they sold an MH to a person who owned a lot? That also would not be a comp.

A unit in a rental park is not a competitive property no matter how much you adjust it nor how much you want it to be a comp to get this job out the door.

 

[glenn walker]

CAN knows more than most appraisers about this type of property so if you proceed take his advise and council. As for me I would decline the order . Sometimes it's best to walk before the nightmare begins. How would you defend your adjustments or methodology when there is nothing to support your value. What if they sell this loan to Fannie and it blows up the CU system. This sounds like the loan that would finally get some poor appraiser placed on the Fannie Mae do not use list or some other govt agency or banks black list. What if the buyer and seller think your report sucks. Recommend the lender to get a old MAI who will go 100 miles for comparable sales or even another state and then when the bank complains he will simply tell them he is an MAI and any further discussion or addendum's are $200 per page extra ) LOL

 

[Deleted member 128537]

I once did a very high end manufactured home and used all comparable built ranch homes even if they were site built or modular. I just explained the situation and it went through just fine. DO NOT use homes without a fee simple site. You are better off going back in time, wide in search criteria, and making reasonable adjustments for quality (I would probably use M&S on both types of houses and then compare the percentage difference in cost to build, then using that as the quality of construction adjustment).

 

[Johnny Knucks]

Thanks for the warnings about the fee simple versus mobile home sites. I completely agree, yet this is exactly what they want me to do. I do have one comparable from a different county, and it is also on an acre lot, but it completely blows up the appraisal value. It's an inferior unit built in 2000. This is one assignment I wish I had never taken. I was under the assumption it was a modular even though it did say manufactured on the order. I just didn't pay close enough attention and now I'm in too deep.

 

[CANative]

Why don't you just use some office building comps?

 

[Johnny Knucks]

I am going to take the sound advice of the group and use only fee simple comps. Thanks for the warning. The only question I can think of now is what is the economic life of these things? Same as a stick built 55/60 yrs?