Manufactured Home - No Comps

[Terrel L. Shields]

Did you use the assessed values (which is what I normally use)?

Say what? Can you show me a textbook where assessed value is acceptable as a method to value land? And in the valuation of land view and location are elements of comparison for the land, and are not separate items from the site value. I am just saying...you'd get whacked by our state if you used the assessed value as site value....and with most large sites being in ag rate, the distortion would be immense. Ag rates here are based on per acre rents x 10, not on the sale price of land.

PS - Can, I understand the value of land is some places. I understand the idea that some lenders require a 1004 on everything....but to me when the site value exceeds the improvements contribution, it's really a land appraisal with improvements rather than a home appraisal with land...

Do you have a separate land grid to value the subject?

 

[CANative]

It's the appraisers opinion of the value of the property rights and any improvements.

My assumption on this thread is that the assignment is proposed construction consisting of a new manufactured home to be sited on a 1.3 acre site.
The fact (under the assumption that the OP really has search long enough and diligently enough) that there are no sales of something similar might be telling in that there is no market for this property at this time. Using sales from a park just to get the necessary two MH comps onto a FannieForm is poor appraisal practice and will result in a misleading report. I think he said he wasn't going to do that though.

But then the OP goes on to say that he's going to what amounts to guessing at the cost and using assessor data for a land value. I don't know which is worse. Use park sales or this latest plan.

 

[Johnny Knucks]

I got in touch with FHA resource center and they sent me the following:

Thank you for contacting the FHA Resource Center, a response to your inquiry is provided below. If the information does not fully address your question, please forward this email (do not reply) to answers@HUD.gov, and provide additional information so that we may better serve you. You may also speak directly to a customer service representative by calling 1-800-CALL-FHA (1-800-225-5342) or visit our online knowledge base at www.HUD.gov/answers, 24 hours/7 days a week.

Your question was regarding comparable sales for a manufactured home.

Manufactured homes that are classified as personal property (not taxed as real estate) should NOT be used as comparable sales.

However, the following guideline exists for manufacture homes:
"At least two of the comparable sale properties must be manufactured homes. It may be necessary to expand search parameters outside the immediate market area to locate truly comparable sales. If that is the case, an explanation is required and should be consistent with the neighborhood analysis provided".

Expand search parameters and provide an adequate explanation why it was necessary to use comparable sales that are distant from the subject.

 

[Johnny Knucks]

I got in touch with FHA resource center and they sent me the following:

Thank you for contacting the FHA Resource Center, a response to your inquiry is provided below. If the information does not fully address your question, please forward this email (do not reply) to answers@HUD.gov, and provide additional information so that we may better serve you. You may also speak directly to a customer service representative by calling 1-800-CALL-FHA (1-800-225-5342) or visit our online knowledge base at www.HUD.gov/answers, 24 hours/7 days a week.

Your question was regarding comparable sales for a manufactured home.

Manufactured homes that are classified as personal property (not taxed as real estate) should NOT be used as comparable sales.

However, the following guideline exists for manufacture homes:
"At least two of the comparable sale properties must be manufactured homes. It may be necessary to expand search parameters outside the immediate market area to locate truly comparable sales. If that is the case, an explanation is required and should be consistent with the neighborhood analysis provided".

Expand search parameters and provide an adequate explanation why it was necessary to use comparable sales that are distant from the subject.

 

[Johnny Knucks]

Remaining economic life will depend upon quality of the subject. A single wide typically has about a 35 to 40 year life. A doubble wide (average) is about 50. I think for a good or very good manufactured home you could make an argument for 55 to 60 years. A good or very good manufactured is about the quality of a modular. When I look at some of the homes that were built in the 1940's that are still around and very functional I think a manufactured home of today is better built than these homes.

This one is above average quality as far as manufactured goes. Drywall, 8' ceilings, steeper roof pitch, some upgrades, etc. I was contemplating using 50 instead of the usual 60.

 

[Johnny Knucks]

I'm not trying to "pile on" but the above is never correct.

Good luck!

If I hadn't already submitted the report I would have, but at this point it's better to try to fix this mess than to just walk away.

 

[Johnny Knucks]

Say what? Can you show me a textbook where assessed value is acceptable as a method to value land? And in the valuation of land view and location are elements of comparison for the land, and are not separate items from the site value. I am just saying...you'd get whacked by our state if you used the assessed value as site value....and with most large sites being in ag rate, the distortion would be immense. Ag rates here are based on per acre rents x 10, not on the sale price of land.

PS - Can, I understand the value of land is some places. I understand the idea that some lenders require a 1004 on everything....but to me when the site value exceeds the improvements contribution, it's really a land appraisal with improvements rather than a home appraisal with land...

Do you have a separate land grid to value the subject?

You make a good point, except that in many areas there are no comparable land sales. This is especially true of urban areas. How would you value a townhouse lot on .05 acres or less, when typically the developer bought the land in bulk? The same is true of most quarter acre lots for detached homes in subdivisions, which is a typical lot size in my state. Again, few if any sales. Besides, if I went by your method, I'd essentially be doing a separate land appraisal for every property I appraise. When I do a large, rural lot, I generally do check, unless I'm confident I know land values in the area, which are usually consistent with assessed values. Still, in consideration of what you're saying, I'm changing the wording in my cost approach. Thanks for the tip.

 

[hastalavista]

If I hadn't already submitted the report I would have, but at this point it's better to try to fix this mess than to just walk away.

Ahh.... I apologize. I didn't realize you had already submitted the report.

Yes, it is better to try to fix it than walk away. The trick is to make sure one doesn't dig oneself into a deeper hole.

Again, good luck!

 

[Johnny Knucks]

I got 2 comps. Wait till they see these. One is 50 miles away. The other is 150 miles away. Huge locational adjustments. I love it.

 

[Johnny Knucks]

Oh, and my location map stretches from the New York border to the North Carolina border. The Atlantic Ocean east, and well into West VA west. The two properties I used were 200 miles apart.