Mobile Home Dilemma

[Kanon18]

I received a call to perform an appraisal for a mobile home (non-lender) cash transaction. My research found that the property is located in a park with space rental fees. There are prior sales in the community, although I can't find any document numbers to confirm the sale. Since I don't have experience in mobile homes, I referred this out to another appraiser in the area who told me to put on the GP form, hit leased fee, mobile home and use sales in the tract, although in my humble opinion doesn't the lease have to be addressed? I would love some input if anyone has experience in appraising mobile homes.

 

[gregb]

Many years appraising manufactured homes in a park. ACI has a form for this property type--MHAR.

 

[Terrel L. Shields]

Yes, there is a way to estimate the value of a leasehold but it sounds like you are being asked to value the improvements only...so you are not valuing a leasehold interest, rather valuing the MH... (I am assuming it is a manufactured home and not a "mobile" home but either way, the best way is to value it with the NADA book plus using sales to verify the accuracy of the NADA printout...

 

[Kanon18]

Yes, there is a way to estimate the value of a leasehold but it sounds like you are being asked to value the improvements only...so you are not valuing a leasehold interest, rather valuing the MH... (I am assuming it is a manufactured home and not a "mobile" home but either way, the best way is to value it with the NADA book plus using sales to verify the accuracy of the NADA printout...

Thank you! Yes, it’s manufactured. I’ve done many appraisals in parks but they own the land and have permanent foundations. Ok, so NADA books should be used. Thank you for that insight, the appraisers I spoke to did not mention NADA.

 

[Terrel L. Shields]

the appraisers I spoke to did not mention NADA.

It's not fee simple. No land. So it is a personal property appraisal (in my opinion.)

 

[Kanon18]

It's not fee simple. No land. So it is a personal property appraisal (in my opinion.)

Yes, my opinion too! I found an expert in the area that’s been appraising these for 30 years, I picked his brain a bit and glad I decided to pass on this one. Thanks for the response.