Manufactured Housing... Rural Area Comps?

[Jim Payne (SD)]

<span style='color:blue'>Hey Forumites!

I have a Manufactured Home on 5+/- AC in a Rural Area in NE Nebraska. Reviewer stated that I needed to have at least 2 Manufactured Home Comparables. I researched my Data Base and found 4 MHs on the South Dakota Side of the Missouri River. The Reviewer stated that I could not use those as they are in a different state. I told the Reviewer that the only other Comparables that I have found were 40, 90 and 96 Miles from the Subject Property BUT--the 4 Comparable Sales "Across the River" were within 20 miles of the Subject. The Reviewer has not responded... :?

Any Advise WOULD BE APPRECIATED!

Jim Payne (SD) :wink: </span>

 

[Pamela Crowley (Florida)]

Jim,

What do YOU think is right? YOU are the appraiser. Take a good hard look at it, try to put yourself in the postiion of the buyer of your subject. If you were interested in buying the subject - what else would you look at and where and why? Whatever the answers to these question are, do it, explain why you did it and send it in.

 

[Jo Ann Meyer Stratton]

Pamela's advice is good. When I was in northwestern AZ I did quite a few appraisals in Needles, CA. Needles has a population of about 4,000 people and then its fifty miles north to Nevada or 200 miles west to the next CA town. Across the river on the AZ side are residential properties for about 20 miles along the river, checkerboarded with one square mile of indian reservation and one square mile of privately owned land on each side of the highway. So when I would do an appraisal of a home outside the city limits of Needles on an acreage I would use comparables from the AZ side, just simply because there wasn't anything that had sold in the previous five years on the CA side. I just provided lots of explanation. Your subject in NE Nebr would have Yankton as it's commerical hub and so would the comparables in SD. However is there a difference in market or property taxes or preception of the schools? I would suggest a mixture of everything, manufactured homes, kit or panel homes (I know there are modulars in that area), maybe a site built or two, some in Nebr and some in SD. And of course lots of explanations! Now I am curious, which town?

 

[Verne Hebert]

I like the posts. And I can see what the underwriter wants to see....a measurement of marketability of manufactured homes. In your area like eastern montana, 100 miles is proximate--and you are lucky if they are less than a year old.

Extend your radius and give her two manufactured sales--this is one where guidelines are not promoting the correct approach to the appraisal.

Good Luck--it is bow season there now isn't it?

 

[Dave Smith]

Politely remind the Reviewer that the lender chooses the subject property and that the appraiser gets to choose the comps.

Then be sure you choose what you believe are the BEST comps available relative to the subject's market area and then explain, explain, explain....

You can't provide what does not exist even if the Reviewer wants you to. :!:

 

[Verne Hebert]

I have reading through "stuff" this morning. FNMA anouncement 02-02 says three manufact comps are required but two will do if you comment on the reason only two were used.

I didn't know this and to my recollection I have done a large number of manufact appraisals without two manufact.

This update allows......"the appraiser may analyze and use older sales or sales in competing markets, so long as the appraisers analysis support his/her opinion of value".

You can review this entire document at www.masterappraisers.org---go to FNMA selling guidelines.

Good Luck

 

[Jo Ann Meyer Stratton]

Verne:
Fannie Mae's new guidelines that went into effect 6/30/02 incorporates most of announcement 02-02 with some slightupdating and corrections. If you are completing appraisals of manufactured homes, read and memorize Section 304 - Factory Built Housing. You might even have to fax a copy to your favorite underwriter when he/she starts insisting on off the wall requests. And it is a good print out to beat other appraisers over the head with. My favorite part of the whole thing is that Fannie Mae says they will make lenders buy back loans based on created sales and file complaints against appraisers that base their opinion of value on created sales. I have been whooping with joy and dancing every since the 02-02 came out. Still hasn't rained yet, so guess I will keep dancing in happiness over that announcement!