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Manufactured REO's

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Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Just did a review of a manf. home appraisal. Subject was a package, all sales were packages. Appraiser did not compare against typical stick built homes. I ran a comparison. Found that a 3 year old mfg. was pulling approxim. 80% (if in good condition) of a stick built average home of same age, and that was generous. Now, you could buy a stick built for the same price as this property was appraised for, so why would you buy a mfg. home and lose at least 20% in value from day one? Because no one ever tells the buyer that. As the homes get older, the loss differentail becomes even higher, becoming a loss of 50-60%. These things are like cars and no appraiser that is appraising these homes new will ever say so. If they did, it would be the last one they did.

Roger
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Roger:

Pagage deals with uninformed buyers stink... However some buyers KNOWINGLY elect a prefab box.

Depreciation depends to a great deal on your market... and the house itself.

My present home is a (now) 9 year old modular on a full foundation...

It was built as one piece, but it ain't no 'singlewide'. Has better quality lumber than most site builts, 6" walls, high end siding, reasonable pitch roof, drywall interior with all oak trim.

The fact that it came in on wheels ... to avoid my aunt watching some guy spit on 'her' wood floor as they built a replacement for her 100+ year old farmhouse (never mind that the guys did that in the factory - she didn't have to watch)... means not a darn thing in my market.

When was the last time you saw 30 foot long clear wood joists under a house... yup run side to side...

It hasn't lost a dime of value... and based on limited other sales it holds it's own against site built competition jus' fine.

So it depends on
1. the market
2. the quality
3. the site....


Round here most modular owners are site buyers: they find the site they want and then buy or bring in the temporary home which will suffice until their ship comes in and they can build the castle of their dreams.... in my case family got into the issue and we bought the family farm. So I guess I am a site buyer too B)

DAMN Fannie anyway, as the entirely un-original family plan involved building the castle and moving the box... but a moved modular even post '76 is now an issue.. except... the county doesn't keep records and if it doesn't LOOK like a modular and such the appraiser will never never know.... :eyecrazy: So if I move it and rent it for two years it becomes 'safe' to sell!?!?! County records will indicate that it is a so many year old house on a new foundation....end of public record.

Something that terrifies me on every blessed rectangular home I appraise out in the country...
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Don't forget to watch out for those 100 year old two storys that are going down the road Lee Ann! After my niece moved hers three miles, she decided the front porch didn't look right. Decided the newel post needed a round decoration--so she bolted a croquet ball on top of the post and after everything had been painted, the porch looked like it did 100 years ago. The croquet ball was the final touch.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Joanne:

Yeah, but Fannie has no current prohibition against moved frame structures on new foundations... just modulars.

If the frame one got moved no biggie!

Call it what it is, assess market and move on.

Move a modular off it's original foundation and Fannie says NO unless I am reading it incorrectly... Problem is since I would have bet big bucks against the one I am living in ever having been on wheels... how the devil can I determine those that get hoisted to a new set of cement?!?!?!

and what happens if when some one blows the whistle on one that "everyone" knew about but... lil ol me :blink:
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
It is only HUD that requires a manufactured home to be installed in it's original location and never moved again. That would have to be tracked through permits. If you got a 1990 model and the manufactured home was installed last week, then it will not qualify for FHA financing (unless it has been a model home on the dealer's sale lot for the past 13 years!). Fannie Mae will loan on both manufactured and modular homes that are not in their original location. Neither HUD or Fannie Mae, that I can find, have any restrictions on modular homes being moved. Modular homes are considered stick built homes by all the lenders and there are not any restrictions on stick built being moved. That is why I have always been amused about lender's hang up with "permanent foundations" for manufactured homes. I have seen site built homes with the same types of foundation that are used for manufactured or old mobile homes--but lenders don't care. I don't think a site built home even has to have a perimeter enclosure--but manufactured homes are required to have one. Dirt, vermin, animals, etc are allowed under site built homes, but that is a no no for manufactured homes. So have I missed a guideline in Fannie Mae that says a modular home can only be moved once?

Again, that is why the correct identification of the original building code is so important. HUD code homes for FHA financing can not be moved from the original site. UBC or BOAC or CABO or other local site building codes homes can be moved from it's original site for everybody. HUD code homes for Fannie Mae can also be moved.
 
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