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Modular Homes

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morris wetherington

Freshman Member
Joined
May 29, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I am wondering about what the conscenses of opinion is regarding appraisals of modular homes. Should they be appraised as a conventional home or a Mfg. home? My opinion is it should be appraised as a conventional home since it has none of the charistics of a mfg home except for the way it arrived on the property. What do you think?
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Not enough information!

Typically, modular would be appraised using other modulars as comps. Conventionally built of similar quality construction can be used.

Now, be VERY, VERY CAREFUL!!!!

Lenders and dealers will call manufactured homes 'modular' and try to convince you to use conventionally built comps.

The other thing to look at is, if the 'modular' looks like a manufactured - it makes more sense to compare it to other manufactured homes. That is how the market place will look at it.

Take care in this realm!!!! Verify that it really is modular!!!!

--------------------------------

I voted compare modular to conventional construction in your poll before I noticed that it's closed to additional comments.

The real answer there should be "It Depends"
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Hello, Morris! Welcome to the Forum! We look forward to your input!

What Pam said! "It depends."

Ideally, you'll be able to find other modulars to compare to a modular subject. When that doesn't happen, I'd look for conventionally built sales that have as many similarities to my subject as possible. I can't visualize an instance where I would compare a modular to a manufactured home, but I guess it could happen. I'd sure write a lot of explanations, though!

As Pam pointed out, be careful of your definitions. The terms " manufactured", "factory built", "mobile", "modular" and "on-rail modular" get tossed around pretty carelessly sometimes. So beware what your client, homeowner, lender or Realtor would have you believe. As professionals, we appraisers should be able to educate those that may need it when necessary. You probably know all this already!

Just in case you haven't read the links below, I highly recommend them. It sometimes helps to have good working definitions for a reference.


http://www.naifa.com/gram/2001oct/stratton-oct01.html

http://www.naifa.com/gram/2003apr/stratton-apr03.html
 

Dan/Fla

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I think it would have alot to do with what does the home really look like. I have seen 2 so called modular homes in this area and guess what, they were both built by Homes Of Merit, which is a major Manufactured Home builder in this area. If I had not seen the paper work I would have guess they where Manufactured Homes that came with axles and Hitch, if it looks like a duck. Though I wrote a long addendum I used Manufactured Comps, For in MY o pion it was the best choice in this case.

But I do have a good friend who lives up north they have a 2 story custom home, that when I was told it came in sections and was built in sections that after the foundation was put in he was able to move in in less than 3 weeks later I was floored No it was not a site built home and was completely built in sections and is what I would call and he called a modular home, and yes I would have used site built homes as sales.

Comps Manufactured or Site built I think we should make the call on a case by case basis.

But I will say if I reviewed someone who had used all site built homes as comps on a modular home which look from the curb to have all appearances of a Manufactured home, I would most likely review that better compatibles could have been used and if the manufactured homes sales do not equal the given in report I would think the market does not support the appraisers market value.
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Dan,

Sounds like we ran into the same type home. Mine was also a Homes of Merit and they called it an "on frame modular". No HUD data plate. Built to CABO/UBC code. However, it sure looked like a double-wide! Like you said, quacked, waddled and had feathers, so I figured it was a duck. After trying to explain all the details to the underwriter, I ended up using two modular comps, two manufactured comps and one site built comp with a whole lotta explaining. Fun!

I'm with you. A potential buyer for that style house would be considering other manufactured homes, not modulars. I think Jo Ann said these durn things were originally developed to get around zoning issues in subdivisions that wouldn't allow manufactured homes. So they put a bunch of lipstick on that pig and I reckon everything's okay. Until one of us unsuspecting appraisers comes along!
 
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