Manufactured homes converted 2 real estate - how to appraise

[Cmeertins]

Hello fellow appraisers! this is my first post on the forum. I have an assignment to appraise a MF home converted to real estate!! Do you use regular SFR as comps, or do you look for other MF homes? (its hard to tell on MLS). Thanks for any help you can provide! - CMeertins

 

[Mountain Man]

Assuming you are a newbie, answering gently ... NO! You find other MH sales.

 

[Cmeertins]

Thanks for your quick response! I guess its back to drawing board. Is there a special way you determine if a home is a MF converted to real estate when looking at MLS (if MLS does not explicitly state it)?

 

[CANative]

You need to withdraw from this assignment due to a lack of competence at this time. Your client will understand. Then take courses or do extensive reading on the subject. It would be really helpful if you could find a local appraiser with experience in manufactured housing and go on a few inspections. Ask lots of questions.

At a minimum you MUST disclose your lack of experience with your client and what steps you are going to take to gain competence during the assignment.

"Converting" to real estate is simply a legal process. The manufactured home doesn't magically become a site-built structure.

 

[Cmeertins]

Thank you very much for your advice. Sometimes we (or just some appraisers) accept orders to quickly without thinking about our competence to complete the assignment. Thanks again.

 

[CANative]

Sometimes I hesitate to say things like that on the forum because people get offended. But experience tells me that sometimes when we take these types of assignments we get about half way into it and really wish we had just turned it down. Very stressful.

Valuation of manufactured housing is kind of a specialty and there are a lot of moving parts to this type of assignment.

 

[Cmeertins]

Just so you know, there was not even one ounce of offense taken. Just appreciation for your honesty.

 

[Jo Ann Meyer Stratton]

100% in agreement with CANative. To help to become better informed regarding factory built housing check out all the Manufactured Home FAQ and their links that is in this section.

Manufactured homes (constructed after June 15, 1976 to the HUD building code)--1004C forum

On frame or off frame modular homes constructed in a factory to a site built building code--1004 form

Mobile homes (constructed to a voluntary manufacturer's code some times) built in a factory prior to June 15, 1976--1004C with lots and lots and lots of explanation. Property will not qualify for Fannie Mae, Freddie Mac or FHA financing.

 

[bnmappraisal]

You need to withdraw from this assignment due to a lack of competence at this time. Your client will understand. Then take courses or do extensive reading on the subject. It would be really helpful if you could find a local appraiser with experience in manufactured housing and go on a few inspections. Ask lots of questions.

At a minimum you MUST disclose your lack of experience with your client and what steps you are going to take to gain competence during the assignment.

"Converting" to real estate is simply a legal process. The manufactured home doesn't magically become a site-built structure.

From one (former) fellow NY'er to another...run! Ok, maybe not that dramatic, but I also agree with CAN. These are not the easiest of assignments and if you haven't done many (if any) of them, it can be very daunting.

I, too, am always learning about these types of properties. I've been appraising for over 7 years with many manufactured properties under my belt, and still to this day, run into many oddities/questions/concerns, etc. Just last week had to ask for everyone's 2 cents due to an "oddity" I was confronted with. It's great to ask questions, and this is a great place for it. But I agree, this one sounds a little too "new" for you and might be best to hand off to someone else for the time being...with all due respect. Best of luck!