Manufactured Housing or Site Built?

[valuetiger]

I have an appraisal problem that has me stumped. I am appraising a single family residence with 2800 square feet. The sale will be financed by a local lender.

One of the past owners started with a single wide manufactured home and, through two rennovations, added and remodelled all around the manufactured home. There is a nice corrugated metal roof over the entire dwelling (including the manufactured portion). The dwelling is now a rectagular structure with the center portion being the manufactured home. There is no way that the manufactured portion could be extracted from the current dwelling. Also, the axles and tongue have been removed. From the exterior, you cannot tell and from the interior only a few items may indicate that it is partially a manufactured home. Looking beneath at the trailer portion shows steel beneath (frame) with new wood all above. In the attic, blown inslulation obscures the view.

The current owner purchased the dwelling in a distressed sale and remodelled again with a complete re-wiring taking place. The home was initally insured as a manufactured home but, since the rennovations, has been insured as a site built home. The tax assessment does not make an indication that the dwelling is a manufactured home. No tags or identifying numbers exist. The only indication is that it was ever a manufactured home is when looking beneath at the frame (pier and beam construction to match up with manufactured portion).

How should I approach this issue? Should I use manufactured comps or site built? I don't have *ANYTHING* to use as a comp for that size dwelling in the manufactured category. How you you seasoned appraisers handle this isse.

Thanks for your input!

 

[Blueprint]

Be careful amigo. Understand that you will have to be able to defend yourself in all fashions for five years, in a court of law. I live in a comm with many a manufactured homes with site built additions. If I can not find something of similar improvement as the subject, I will not touch it with a 20 foot pole. You can talk all you want, yet a defense lawyer can rip you apart if you do not have solid style supportive evidence.

 

[valuetiger]

Ok . Help Me With This

Down boy, down! I am asking advice here. I am not sure how to approach this issue and it seems that you have been faced with a similar situation and are uneasy with this as I am.

I do not have any mfg'd plus site built comps ... I mean none. It is not common around here. My question is How do I approach this? Even if I don't approach it, would the cost approach and sales comparison with a blended value be appropriate? I am completely unsure how to handle this.

But thanks for your reply!

 

[Blueprint]

Drop it. Let it go. I am giving you my advice. It is not going to kill you. You have every reason in the world to defend yourself effectively by dropping it.

If I were there with you, it would be another ballgame. You are shooting yourself in the foot if you attempt something of this magnitude, without season.

 

[Mztk1]

I just had one of these and have done others. The first thing I do is provide a letter with pictures to the client stating what is on site. In the letter I state the year the manufactured house was built and what the HUD tag numbers are. I try to include all the information necessary for serial numbers, manufacturer, date of manufacture as possible. If it is a pre-1976 it is a mobile. If any of the data is not available, if the data plate is missing, or if there are no HUD tag ID numbers, I state so up front.

Nearly everytime these get cancelled by the client after receiving the letter and pictures.

The few that I had to finish to completion, including reports I did more than 10 years ago without being grilled over them, I did what you normally would do with any subject property - I bracketed its overall appeal.

Most often I will look for a MFH with site built additions. It is typical that none of these units are enveloped MFH houses so in a sense, they are typically inferior to a house like yours. To prove site additions around a MFH are market accepted in a positive way, I will also include a manufactured house without additions (showing how the one with and the one without compare). Finally, I will use a low or fair quality, site built stick home to bracket the upper end.

It isn't always neat, but as long as you are bracketing the overall appeal and showing market support for site additions, you are doing the best you can.

Because a lot of these types of additions are by owners without permits, I will also require professional inspections for plumbing, electric and structure or for the owner to show convincing evidence that changes were completed with proper permits and inspections.

In my original letter to the lender I will clearly state that if the appraisal is completed the report would be subject to the owner showing these permits, or to the inspection by the qualified professionals to ensure the building is sound.

 

[Terrel L. Shields]

If any part of the dwelling is a manufactured home, the property is MH. I would run away and fight again another day. The lender will find an appraiser pliant enough to do it, but it is a high risk to do so...very high risk.

 

[Jo Ann Meyer Stratton]

Once a manufactured home or mobile home always a manufactured home or mobile home because that original construction code that was followed in the factory at time of original construction is different than a building code for site built homes. If any of the exterior or interior walls/framing, original electrical wiring, original plumbing, etc remains it is still a manufactured or mobile home.

The 1004C would be used if any HUD code construction remains and the livable area of that HUD code construction should be reported on the GLA line. The site built construction area would be on a different line--porch/patio or one of the blank lines at the bottom of the grid. Your sketch should also be delineated between the two areas constructed to different building codes. The 1994 URAR/1004 would be used for a mobile home with manufactured home marked yes. A very detailed Expanded Comment Section needs to included with lots and lots of descriptive comments. Lots of photos also need to be included. Also include any documentation you can find in assessment, taxation, building, zoning records.

 

[Mike Garrett RAA]

I concur, it is and always will be a manufactured home. Most are not eligible for typical funding if there has been stick built additions.

 

[valuetiger]

Thank all of you very much. I appreciate your input!

 

[Steve Forstner]

I do the same thing Jim Klos does. I go back and make a phone call to my client followed by a letter explaining the construction, and the fact that the home is going to be considered manufactured. 99.99% of the time I get cancelled out on. That other .01% I proceed very carefully and make many explanations.