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

[Larry Phillips]

Dealing with personal property, USPAP has a section on Personal Property Appraising. It can expand your business. I suggest talking with a Manufactured Housing Dealer to start the appraisal, to find how similar properties sell. Then follow up on verification, and prepare a personal property appraisal, which will be in narrative format with required certifications. A significant certification will be that you have or have not performed this type appraisal. If you have not performed similar appraisals, then how did you overcome the lack of experience? Manufactured Housing park operators will probably know of homes that have sold without land ownership.

 

[J Grant]

Dealing with personal property, USPAP has a section on Personal Property Appraising. It can expand your business. I suggest talking with a Manufactured Housing Dealer to start the appraisal, to find how similar properties sell. Then follow up on verification, and prepare a personal property appraisal, which will be in narrative format with required certifications. A significant certification will be that you have or have not performed this type appraisal. If you have not performed similar appraisals, then how did you overcome the lack of experience? Manufactured Housing park operators will probably know of homes that have sold without land ownership.

Imo, this is the wrong way to approach this assignment, though a depreciated cost approach for the house can only be used as support -

Manufactured houses on a land lease are not personal property floating around untethered to anything. They are sold (typically ) in deed or other legal conveyance with the land lease, and the only way out of the land lease is to pay the balance of the lease off in full (if the owner of the land agrees to it ) or buy the lot from the owner ( if they agree to sell ). Otherwise, stop paying the land lease, and the leaseholder can file a lien and seize the house, similar to if you stop paying taxes or stop paying a mandatory HOA fee.

 

[alebrewer]

This was on FHA.Com:
FHA / VA / USDA One-Time Close Construction to Permanent Loans are offered for new site stick build housing, new modular construction, and new manufactured construction. While the State of California is split into MSA’s, these Single-Close construction loans are available in all 58 CA counties. OTC mortgages are a major improvement over the old construction loan process that forced borrowers to apply for not one, but TWO loans; one for the payment for labor, materials, and construction of the home and another loan that covers the actual mortgage. FHA / VA / USDA OTC loans have a single application and closing date.

You do know FHA.com is not FHA's website, right?

 

[alebrewer]

FHA does use Site Built not stick built in the current guidelines so to each their own. Site Built is not all that accurate anymore since Trusses etc. are many times made in a factory, not built on site.

Bro - give it a break. It's not a big deal. Use whatever term you want to use.

 

[BRCJR]

Ran into a situation just like this.

Foreclosed upon a property (land and DW) owned by the same person.

Tax assessor showed it as all real property (wheels, axile and tongue removed on perm foundation). Taxed as real property.

Courthouse steps auction.

Had to do a second auction as the owner had never surrendered the tile.

We paid 140,000 for a 20,000 lot.

Next auction was done like a vehicle repossession for the DW.

Luckily, we only have to pay a small number for the DW and were able to sell it out of OREO without a loss.

 

[Mark K]

The question that no one has asked is; what are the terms of the lease? Is it short term, long term, renewable, lease costs, who pays taxes, is it typical for the area, etc..

Agree. There could be significant leasehold value if its a long-term lease in a desirable area. Unlikely but the lease needs analyzed. If its short term you have the value of the personal property (the DW).

In this area, they sell for very little if they have to be moved and set up on another site. The cost to move to a new site, new foundation, well, septic, driveway, sidewalks, etc. is prohibitive. The cost of the lot and the necessary land improvements would be at least $100K, probably closer to $150K.

Also, BTW, most 'parks' will not allow you to move in a DW that is over a certain age, usually 10 years or so.

 

[alebrewer]

In this area, they sell for very little if they have to be moved and set up on another site. The cost to move to a new site, new foundation, well, septic, driveway, sidewalks, etc. is prohibitive. The cost of the lot and the necessary land improvements would be at least $100K, probably closer to $150K.

Even more of a discouraging effect on moving a MFG is that you can't get F/F/FHA financing after the first move...