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Mobile home with no value or ID Conv. not FHA

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WadeKoutnik

Sophomore Member
Joined
Feb 27, 2007
Professional Status
Certified Residential Appraiser
State
Florida
This mobile home has no ID's and the condition and age don't give it much value if any. The value is obviously all in the land (approx 5 acres).

It has been a while since I have had one like this. Can I treat this as a land appraisal since the MH has no labels or value? If not what kind of comparables should I use? I am sure I can find some on MLS that claim that the "value is in the land"

This is conventional btw.
 

Wayne Tomlinson

Senior Member
Joined
Jan 25, 2005
Professional Status
Certified General Appraiser
State
Illinois
Just because the mobile home has no labels does not necessarily make it have no value. Perhaps it was constructed to other than HUD standards, maybe it was built prior to 1978.
You did not mention any reason for having no vaue except the labels.

Other than that, have you discussed this with your client.

There is no one on the forum (unless your client is a forumite) that can tell you what your client is looking for.

Look his phone number and ask him/her.

It is as simple as that.

Wayne Tomlinson
 

WadeKoutnik

Sophomore Member
Joined
Feb 27, 2007
Professional Status
Certified Residential Appraiser
State
Florida
No one would pay a dime for it. Condition is poor and it is old. They are living in it but I cannot give it any value due to condition.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
No one would pay a dime for it. Condition is poor and it is old. They are living in it but I cannot give it any value due to condition.

So homeless people wouldn't live there if it cost them more than a tent in the median of the freeway?
 

WadeKoutnik

Sophomore Member
Joined
Feb 27, 2007
Professional Status
Certified Residential Appraiser
State
Florida
Wade ........the improvements are of No Serviceable Value at all?

I personally think that what value it does have is likely cancelled out by the need for a new roof and it has no flooring (just plywood).

Regardless, Lets say it's worth 5k.
 

Wayne Tomlinson

Senior Member
Joined
Jan 25, 2005
Professional Status
Certified General Appraiser
State
Illinois
I have seen mobile homes sell for much lesss. But even $1,000. is value.

It may not add value to the real estate, but that is different than $0.00 value.

It might even have negative value.

Your origiinal post made much of the fact that it had no labeles or stickers. It appeared that that was the basis for the no-value statement.

Wayne Tomlinson
 

WadeKoutnik

Sophomore Member
Joined
Feb 27, 2007
Professional Status
Certified Residential Appraiser
State
Florida
I have seen mobile homes sell for much lesss. But even $1,000. is value.

It may not add value to the real estate, but that is different than $0.00 value.

It might even have negative value.

Your origiinal post made much of the fact that it had no labeles or stickers. It appeared that that was the basis for the no-value statement.

Wayne Tomlinson

Yea I didn't word it very well. It was basically 2 questions. How to treat the label problem and how to treat the appraisal as a whole.

a) land appraisal
b) MH appraisal with a huge condition adjustment unless I can find similar condition MH's
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
You have to solve the highest and best use problem first.

In my area a 1960's mobile home in poor condition and where the depreciated retail book value might be less than the cost to dismantle it and dispose of it will nevertheless continue to contribute value to the land because investors will buy the property and put in a renter. Renters love these because the get a relatively large house for very, very low rent which is usually subsidized by government programs such as HUD section 8. A lot worth $35,000 will sell for $65,000 to $75,000 if there is a "no value" mobile home on it.

In other areas where there is good demand for a new house it would make more sense to buy the property, remove the existing mobile home and redelope.

In your case it may make sense to leave it there because it will allow the entitlements to remain (no new fees for utility hookups, impact fees, etc, etc.) If someone is living there are they the owners or are they tenants paying rent? Is there a strong demand for cheap rental housing?

In any case, you can't simply try to do a land appraisal on this property without discussing this with you client. You'll need to arm yourself with more information and thought on this and then call the client and figure out how to deal with this together.
 
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