Manufactured Home vs Modular Home

[Russ Kitzberger]

Appraisers can sometimes be qualified through experience or training to give opinions about construction type and classification.

If there is any doubt about the construction classification or pushback from the lender; you should consider hiring a Public Engineer that is licensed in your state to give you a determination and an opinion letter. Present that to the lender.

PE's that do residential construction can many times be found under structural inspectors, advanced home inspection, or insurance claim engineers. You can also contact public adjusters and ask for a referral to a PE.

 

[Dublin ohio]

That floor joist system is a conventionally built system. It has standard joist hangers. Never seen them used on any modular of mfg home. Could it have been set on top of a floor system. Steel chassis and all. Looks like you cold pick up some reference points. To determine floor height from top of concrete block foundation.

 

[Zerubabel]

I am appraising a home that was listed and sold (under contract) as a manufactured home. During the inspection it looked like a manufactured home (built in 1989; cheap walls; 2x3 interior walls; alum windows). The client ordered a 1004C. I could not find any HUD tags or a data sheet but I assumed it was a double wide manufactured home. I didn't see steel beams or tie-downs, however and it had an attic access. The seller has now emailed this TAG and is claiming that it is a modular home and should be compared to site built homes. I may have missed this tag during the inspection but my questions are:
1. If the home is a modular home should I be doing this on a 1004c? I don't think so.
2. The homes compares most similarly to manufactured homes (in terms of appearance and quality). I'm getting pressure to use site built homes as comps. I would think that with the principle of substitution it is perfectly acceptable to use manufactured homes as comparable sales.
Sorry for the questions but I've not really run up against this before.

 

[DWiley]

I am appraising a home that was listed and sold (under contract) as a manufactured home. During the inspection it looked like a manufactured home (built in 1989; cheap walls; 2x3 interior walls; alum windows). The client ordered a 1004C. I could not find any HUD tags or a data sheet but I assumed it was a double wide manufactured home. I didn't see steel beams or tie-downs, however and it had an attic access. The seller has now emailed this TAG and is claiming that it is a modular home and should be compared to site built homes. I may have missed this tag during the inspection but my questions are:
1. If the home is a modular home should I be doing this on a 1004c? I don't think so.
2. The homes compares most similarly to manufactured homes (in terms of appearance and quality). I'm getting pressure to use site built homes as comps. I would think that with the principle of substitution it is perfectly acceptable to use manufactured homes as comparable sales.
Sorry for the questions but I've not really run up against this before.
View attachment 55422

That is NOT a HUD tag. So, it is not an MH and should not be reported on a 1004C.

The comps should be the most similar homes. Period. That metal tag does not change the basic construction/style/appeal of the subject property.

 

[Zerubabel]

Thanks Danny.

 

[Dublin ohio]

That tag indicates it is a modular. Can be compared to stick built. But by your description of the quality (not sure how you determined it was 2 x 3 construction) You might want to see if you can track down the building act the tag refers to. As far as comparing to manufactured home. Might be applicable in this case due to quality. But how do you determine the construction quality of the mfg home comp. Did a quick search. here is link to the building act

Modular Building Program

www.tn.gov

 

[spittman]

The client ordered a 1004C.
View attachment 55422

Did you complete the report on a 1004c already? Part of the responsibility falls on you as an appraiser to identify the correct property type, but I understand how easily it can be mislabeled especially if it was listed as manufactured. Based on your description, I would say that you can use manufactured homes as comps if they have been retrofitted. I've done it several times with no kickback from FNMA or FHA. Finding comps may be a challenge and I have also come across a few modular homes that were cross listed in my MLS manufactured home category and vice versa. What I like to do first is search for site built homes on pier/beam/post foundation and wood/hardboard siding. You might be surprised at how many homes were built on post foundations after the 1980s well into the 2000s. It's like looking for a needle in a haystack and you will have to scour the descriptions for more details or verify through other sources. If you already completed the report and they want you to convert it to a regular 1004 then I suggest you charge an additional fee since they are the ones that ordered the 1004c.

 

[RSW]

Thanks Danny.

Danny is correct. The green tags in TN are modular homes.

 

[Zerubabel]

Did you complete the report on a 1004c already? Part of the responsibility falls on you as an appraiser to identify the correct property type, but I understand how easily it can be mislabeled especially if it was listed as manufactured. Based on your description, I would say that you can use manufactured homes as comps if they have been retrofitted. I've done it several times with no kickback from FNMA or FHA. Finding comps may be a challenge and I have also come across a few modular homes that were cross listed in my MLS manufactured home category and vice versa. What I like to do first is search for site built homes on pier/beam/post foundation and wood/hardboard siding. You might be surprised at how many homes were built on post foundations after the 1980s well into the 2000s. It's like looking for a needle in a haystack and you will have to scour the descriptions for more details or verify through other sources. If you already completed the report and they want you to convert it to a regular 1004 then I suggest you charge an additional fee since they are the ones that ordered the 1004c.

I had a rough draft of the report on a 1004C yet when I made the discovery. The client has switched the product to a 1004 FHA based on my feedback. The quality of the home, however, is very much like a manufactured home. It is on a continuous footer with block foundation but the windows are cheaper Aluminum frame windows from the late 80's, all walls are cheap paneling. So I've basically used fair quality homes with similar interior quality as the subject. I am also using two manufactured homes (that have been retrofitted). Thanks for your helpful comments.