Mobile Home Report

[mark peters]

I am wondering if anyone out there could help me.

I received an assignment from a client to value a mobile home. First, I thought that mobile homes that have yet to be converted to real property were considered personal property. So as real property appraisers, am I allowed to complete the assignment. I know this probably is a no brainer but I don't want to move forward with the appraisal process if it is not allowed. If so, do I complete it on the Mobile Home Appraisal Report form or a 1004 (the client wants a "full" report). I spoke with an appraiser that I know and he mentioned that I might have to make a "hypothetical assumption" concerning the conversion to real property. Any help on this matter would greatly be appreciated. Thanks.

 

[Wally Jones]

If the land upon which the manufactured home sits is not owned by the homeowner, the home is personal property. In which case you are probably not qualified to do a personal property report (or else you most likely wouldn't have asked your question )

In many cases where the lot is rented (e.g., "mobile home" parks), lot rent is charged to the owner of the home. In such an instance, I don't feel a hypothetical assumption concerning conversion to real property would be applicable.

Or......is this a manufactured (new, existing, proposed) home being placed on land owned by the buyer? In this case, simply make the report "subject to" conversion to real property. (In our area, that can be done in one day.)

Tip for the day: Review posts in this forum, HUD guidelines and Fannie Mae Selling Guide concerning definitions of "mobile", "manufactured", "modular", "factory built". If your subject was built after 1976 it isn't a mobile home.

Good luck.

 

[mark peters]

Thanks for the quick response. The land is owned by the homeowner and the "home" was built in 1980. So you are saying that it is not a mobile home because it was built after 76'? Also, would I be conveying the report on a Mobile Home Appraisal Report or the 1004? Thanks again.

 

[Jo Ann Meyer Stratton]

Mobile homes have not been constructed since prior to June 15, 1976. Since your subject was built in 1980 and built to HUD code, it is a manufactured home. If you decide to accept the assignment, look for the HUD label on the end of each section, take photos and notes. Inside look for a letter sized piece of paper with a map of the USA on it, at the upper left hand corner will be the name of the manufacturer, location of plant where manufactured, date of manufacture, serial number (AKA vehicle identification number) that is used in ownership documents and also (hopefully) the same number that was on the labels outside (which is not the serial number). Depending on the laws in your state for the procedure to tax the property as real property, you could go ahead and appraise the property now, the lender will then have to arrange for whatever documents and procedures would be required to enable the home to be taxed as real property before close of escrow. That would be the lenders problem, you would just describe the situation. In your addendum describe the current tax situation, what the taxes are for the land and improvements to the land and also what the personal property tax was for the most recent tax year. Depending on the type of financing, the lender probably will require a skirt wall or perimeter enclosure of some type. If it is for FHA financing, that perimeter enclosure will need to be concrete, masonry or pre-treated wood. Fannie Mae will accept other types of materials. If there isn't a perimeter enclosure, it becomes the lender's problem to make sure one is installed prior to close of escrow (another subject to in the appraisal). And don't fill out a mobile home addendum!! If you have to under threat of bodily harm, type after almost every question that appraiser is not qualified and the lender needs to get a licensed engineer or home inspector or contractor to answer those questions (anybody except the appraiser!)

So describe what you see, using either a URAR or a 2055 interior for the report form, make conditions in the report that the value would be subject to, send the report and the bill. After that it becomes the lender's problems.

 

[Tim Hicks (Texas)]

Jo Anne,

I have to admit, I delayed responding to this post because I knew you would handle it. You have been so thorough and covered things I have missed in other threads that now I just wait for you to post first. You are the Queen of Manufactured Homes and I am proud to be a loyal subject.

 

[mark peters]

Thank you so much Jo Ann for the in depth answer. You have been a great help!

 

[Jo Ann Meyer Stratton]

Thank you. I have just realized that at the bottom of my message the link to my article on the NAIFA website is posted. Neat--now I don't have to remember the address and if somebody is interested, all they have to do is click on that link and there it is!