Manufactured home not real estate. No lender, this is for a divorce situation.

[Harry Kessel]

So I went out to do an appraisal on a manufactured home/doublewide. Come to find out the owners of the home lease the land it is situated on. Never ran across this before. Any thoughts on this? Is there a way to appraise just the manufactured home for it's value? I believe it is only considered personal property since the title has not been turned in as real estate.
Thanks,
Harold

 

[J Grant]

It's real estate with a land lease.

The land typically does not contribute to value in a land lease since the owner of the manufactured home does not own the land - however, they "own the right " to use the land- as part of the sale typically - the RE taxes are lower because the owner of the land and holder of the lease pay the RE taxes, the person owning the manufactured home with right to use the land pays X$ a month for the land lease - however every situation can be different, I just gave a common example.

Imo, if there are comps of other manufactured homes on land leases, it is a doable assignment; otherwise, we might be better off giving it back

Let the lender and client know about the land lease in case they decide to stop the assignment and not proceed.

 

[alebrewer]

Each state treats them just a bit differently. In TX, they're not real property until they're perfected/elected as such. If they are, the MFG information will be reflected on tax records and taxed as real property. We have a website here we can check to confirm election/perfection. Of course the home can be appraised just for it's value (sans the land) - that would be a personal property appraisal, and you wouldn't need a credential to perform it. Generally, an appraiser would make the appraisal 'subject to' election as real property, and invoke an HC, but if they're leasing the land that's not even gonna work...

 

[CCAAMO]

If its on a permanent foundation its no different than a stick built home on leased land

 

[alebrewer]

If its on a permanent foundation its no different than a stick built home on leased land

not in Texas...

 

[CCAAMO]

not in Texas...

Good thing its in Ohio

 

[alebrewer]

Good thing its in Ohio

For sure! In Texas, it's not the method of fixation that determines whether the improvements are 'real property' or not - it's the election by the responsible party.

Just FYI, and it's no big deal either way, but MFG homes are stick built also...

 

[J Grant]

Before spending more time, call your client. They might not know it is a land lease and some lenders do not lend on them

 

[Dublin ohio]

Good thing its in Ohio

In all of the counties I service. It is not real estate until the title has been surrendered and it is affixed to the real estate. Foundation requirements can vary between counties, townships or municipalities. Leased land is leased land. Not much different than leasing a lot in a mfg home park.

 

[gregb]

Thousands of manufactured homes on leased land in Mobile Home parks here. Limited number of lenders who lend in this market, and the interest rate is typically higher than for stick built SFR's.