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Modular Or Mobile?

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Peggy Wright

Sophomore Member
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Mar 16, 2003
I understand the difference between a modular and a mobile. What I don't know is if it is modular built to Cabo or Boca, do you use the regular URAR and state manufactured, or do you use the forms for mobile/manufactured?
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
If it's real estate (permanently attached to the land, tongue and wheels removed, title surrendered, etc) you use the 1004/2055. If it's just the unit, use the Mobile form.
 
Joined
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Professional Status
Retired Appraiser
State
Florida
Originally posted by Peggy Wright@Apr 15 2003, 02:36 PM
I understand the difference between a modular and a mobile. What I don't know is if it is modular built to Cabo or Boca, do you use the regular URAR and state manufactured, or do you use the forms for mobile/manufactured?
If it's modular, use the 1004/URAR.
Yes, it is manufactured BUT, I put in the word Modular.

As to which code it was built by.... it depends.... on who built it and what code they either need to wanted to use. I valiantly attempt to have at least one modular comp. That can be next to impossible here so stick built is what I use typically. If the modular looks like a manufactured (what we used to call mobile homes), I will usually toss in one of those, too.

Sometimes it's really hard to tell what you're dealing with if it has new siding and cabinets with no stickers or labels anywhere.

If the County records can't tell you what it is, try the recorded Deed or Mortgage as most often (at least here) the manufacturer and serial numbers are on either or both of those documents.

Punt! Explain and take pictures!!!
 

Rich Heyn

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Michigan
Sorry Pam, I'm gonna have to respectfully disagree with you on this one. Or perhaps I misunderstood your reply. Modular is not manufactured, at least not in the specific sense.

Factory-built on a permanent chassis prior to June 15, 1976 = Mobile home

Factory-built to the HUD code = Manufactured home

Factory-built (and finished) to BOCA, UBC, etc. = Modular

All are factory-built, but only the HUD code homes are truly "manufactured homes" as defined by the HUD code and other applicable regulations.

Panelized, kit, pre-cut and pre-fab are not modular, manufactured or mobile, but are other forms of "automated housing."

Rich Heyn
 
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Professional Status
Retired Appraiser
State
Florida
Hi Rich!

I never mind being corrected.

I'm saying that on page 1 of the URAR where it says "Manufactured House" and we usually put in either "Yes" or "No". If it's modular, I put "Modular" in that space. If the subject was panelized, kit, pre-cut or pre-fab, that's what I would put in that space. Am I doing it wrong? It seems like a good place to put that info plus other explanations in other parts of the report.
 

Rich Heyn

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Michigan
Pam:

Sorry to take so long in responding. Busy teaching schedule this time of year.

To answer your question; no, you are not doing it wrong. You're doing it just right, I believe.

Here's what I teach in the Manufactured Housing seminar:

If it's a HUD code house, answer "yes" and then describe it as a true "manufactured house" that was built to the HUD code.

If it's a Modular, answer "Modular" and then describe it as a factory-built house that was built to the BOCA, UBC, whatever code.

If, it's something else, answer panelized, pre-fab, whatever (although most appraisers will be hard pressed to tell a panelized or pre-cut from a stick-built) and then describe it accordingly.

Rich
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Modulars are generally "manufactured homes" in the true sense of the term. This is something that really needs to be cleaned up on the URAR. If it was "factory built" I always mark it "manufactured".

On page one under General Description Design I put Ranch/Mod, manufactured house - Yes. Then I list the type on the additional features line such as "HUD Modular or CABO Manufactured or BOCA Manufactured.
In the grid under design I put Ranch/Avg, Under Quality of Construction I put Modular/Avg or Modular/Fair.

Our state has a section of the Department of Regulatory Agencies that oversees all manufactured housing. We had them come in and do a seminar for local appraisers. It was most helpful. They have several different classifications that are presently in use.

Mobile home
Manufactured home
Manufactured home - HUD
Manufactured home - CABO
Manufactured home - BOCA
Modular home

Prefabricated homes are considered a hybrid and do not fall under their jurisdiction. These could be
Kit home
panelized home
log home

Lastly, you can get into the really weird stuff such as

Dome home
earth bermed home

It's never easy to know what you are really dealing with. My county, El Paso County has more than 15,000 modular homes on sites ranging from a city lot to 160 acres. Most have either FHA or VA loans. FHA says it must be post 1976 and have red tags and be on a permanent foundation. That can be several different types including perimeter block or foundation or engineered piers. In either case it must be permanently attached (anchored) with metal straps or cables. They now want a picture of the anchoring system included in the appraisal report. VA, on the other hand, will do pre-76 as long as it is classified as real estate by the county and on a permanent foundation.

The highest incidence of foreclosure is occurring in mobile/modular/manufactured housing. I probably do 4 or 5 of those every month, mostly fannie mae.

Lastly, we have many land developers who develop 5 acre tract subdivisions exclusively for modular homes. The set up a sales office and several models just like a stick developer. The sales are a land/unit packages and sold with both VA and FHA financing. Most are on well and septic systems. Both FHA and VA have allowed the appraisers to use these new home sales as comparables which is contrary to what others have posted in this forum.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Lastly, we have many land developers who develop 5 acre tract subdivisions exclusively for modular homes. The set up a sales office and several models just like a stick developer. The sales are a land/unit packages and sold with both VA and FHA financing. Most are on well and septic systems. Both FHA and VA have allowed the appraisers to use these new home sales as comparables which is contrary to what others have posted in this forum.

Due to the homes being offered and available on the market like regular builders do, ie: here is the subdivision to pick your lot; here are the homes to pick your model and options, these would be considered qualified comparable sales. Those sites and homes are available for sale on the open market. Dealer/builder already owns the sites available and for sale with your choice of the offered homes prior to finding a buyer.

I've seen a couple MH dealers lately that have tried to get around this situation by having the buyer go out and find a site they want - anywhere - get a nice large down payment, dealer buys the site instead of the real buyer, places the MH on it and sells it as a package to the buyer. NOT a qualified sale. This package was not sitting there with a For Sale sign on it prior to finding the buyer!

I hope I explained these differences so they can be understood. :blink:
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Rich....

I forgot to mention, I worked for Ingersoll Republic Corporation back in the late 60s ~ early 70s. I was the sales manager of their land sales department. We developed a modular home factory (the first in the state of Colorado) and built true modulars. There was no under carriage. These were built with 2 x 6 frame construction and standard floor joists and sub floor. The interior walls were finished first and then insulation (UFFI which is now considered bad) was sprayed in before the exterior wood walls were installed.

The whole unit was lifted by crane onto a flat bed truck, usually in three modules, and hauled to the site where it was placed on concrete foundation or full basement. Even had a few air lifted by sky crane into the mountain ski areas. This was a very unique product. It even took honors in the parade of homes in 1970 in Colorado Springs as the most innovative new home. That was the same year my brother built a home two doors away that was also a parade winner.

So, as you can see, there were modulars prior to 1976. I am told that is true in California and Arizona too. Not long ago I did one which is a fannie mae foreclosure in a really nice subdivision north of the Springs. It was built in 1972 and is a true modular (not one of Ingersoll's) They are presently building $500,000 homes less than 1/2 mile from this modular. I felt the land value (1 acre timbered lot) was more than the improvement and recommended removing it even though it was not in bad condition. It even had hot water heat and an attached two car garage. Go figure?
 
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