Manufactured Home - No Comps

[Johnny Knucks]

Subject is a new Manf. home to be installed on subject lot, which is 1.3 acres. Mfr. is from out of state, and calls to local mfrs were not returned. Only comps available are from mobile home parks. These are fine except they have ground rent from $7500-9900/yr. I have a few which look suspiciously like modular and have no basements, and are decent comps otherwise, but the lender requires two mfd homes.

My only option is to use homes from trailer parks. There are no public records for these homes, so in my mind they are not even real property. The sale prices are similar to the price of the new mfd home when adjusted for age, condition, GLA etc, however the location/LH-FS/site/view adjustments throw the net and gross adjustments totally out of whack (close to 200%). The leasehold adjustments alone capitalized at 6% are well over 100k, which is more than the site value. I'm wondering if there is another way to do this, and what kind of CYA statements to put in the report.

 

[Noreen]

Subject is a new Manf. home to be installed on subject lot, which is 1.3 acres. Mfr. is from out of state, and calls to local mfrs were not returned. Only comps available are from mobile home parks. These are fine except they have ground rent from $7500-9900/yr. I have a few which look suspiciously like modular and have no basements, and are decent comps otherwise, but the lender requires two mfd homes.

My only option is to use homes from trailer parks. There are no public records for these homes, so in my mind they are not even real property. The sale prices are similar to the price of the new mfd home when adjusted for age, condition, GLA etc, however the location/LH-FS/site/view adjustments throw the net and gross adjustments totally out of whack (close to 200%). The leasehold adjustments alone capitalized at 6% are well over 100k, which is more than the site value. I'm wondering if there is another way to do this, and what kind of CYA statements to put in the report.

We have these similar issues here in So NH, some on their own land, some in parks with monthly rental that also covers grounds maintenance. Here, it's public record to whether or not they are taxed as real estate. Are you able to approach it from that manner, even if they are in a park?

 

[CANative]

DON'T USE SALES FROM PARKS FOR A HOME ON A FEE SIMPLE LOT.

 

[Meandering]

What he said

 

[Noreen]

DON'T USE SALES FROM PARKS FOR A HOME ON A FEE SIMPLE LOT.

What would you look toward if there have been no other sales of manufactured on their own land?? Back in time (sounds like wayyy back in this case)?

 

[Blueprint]

Turn it down unless they are paying as needed. Assume it is from a client you feel obligated to do everything for.

 

[Meandering]

If worse comes to worse, low quality stick built.

 

[CANative]

What Marion just said, although it doesn't have to be "low quality" because MH's can be very good quality and comparable to site built.

The problem with using park sales as comps is that the property rights are different. The park homes consist of personal property (the improvements and the leasehold interest in the specific location.) The subject is the fee simple interest in the land and improvements. Apples and coconuts. The OP would be fried for doing this.

 

[Noreen]

What Marion just said, although it doesn't have to be "low quality" because MH's can be very good quality and comparable to site built.

The problem with using park sales as comps is that the property rights are different. The park homes consist of personal property (the improvements and the leasehold interest in the specific location.) The subject is the fee simple interest in the land and improvements. Apples and coconuts. The OP would be fried for doing this.

I know the property rights are different ( fee simple versus leasehold) here, even if they are in a park they are taxed as and are considered real estate. I typically go back in time when I have nothing recent, apples to apples. Not all lenders will accept this though.

 

[CANative]

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