NADA Guide Cost Approach Help

[Charles Knutson]

I'm working on my first 1004C Modular/Manufactured Home report, and need some help with the NADA Cost Approach section.

The subject is in a modular home SFR community, with a mix of both HUD and UBC modulars. There are enough sales to develop the market approach, so that is the primary determinant of value -- but I don't have immediate access to the NADA guide, so I need some help with that section of the cost approach.

From the public records, the subject unit was made by Atlantic, 2001 YOC and installation, with 47-01-C73-xxxxxA/B serial numbers. The subject is permenantly installed, enclosed on three sides with a two car attached garage, concrete RV slab and patio.

Can anyone help with the NADA Cost Approach info on the 1004C page two bottom right?

Thanks --

 

[CANative]

Modular and Manufactured are not interchangeable terms so I wouldn't use the slash (modular/manufactured) to describe what I'm appraising.

The first thing you have to do is find out what building code was used in the original construction of the home. Was it built to the HUD code? Or was it built to a local building code or some other bulding code. You can't proceed until you know this.

If you don't have a subscription to NADA, use Marshall & Swift.

The subject is in a modular home SFR community, with a mix of both HUD and UBC modulars.

Are the lots fee simple or do the homeowners pay space rent?

 

[Charles Knutson]

Are the lots fee simple or do the homeowners pay space rent?

It is a fee simple community, with a mix of modular (UBC) and manufactured (HUD) homes. All of the homes are modular style ranches, most of them with garages, so there is a high level of conformity -- the modular or manufactured (UBC or HUD building codes) are the only real differences between the two. The modulars tend to sell for higher values, but the market accepts both in this sub area.

Page 2 of the new 1004C form has some NADA specific questions, in addition to the Marshall and Swift cost approach section -- getting that part filled out is the specific question right now.

 

[CANative]

You still have not stated if the subject improvements are HUD Code or not.

If you use M&S, then the NADA stuff on the form is not relevant. Since you don't have NADA, you'll have to use some other cost service.

 

[Charles Knutson]

The subject is HUD code -- as I understand it, only HUD code manufactured housing has serial numbers, and modulars do not.

 

[CANative]

There are manufacturer's serial numbers and there are HUD certification data label numbers. Both can have serial numbers, only HUD code's will have the data label number. If it's a HUD code there should be metal plates affixed to the exterior with data label numbers stamped into the plate. There should be 3 letters followed by 6 or 7 numbers, they should be on each section and are usually sequantial (but not always)

These same numers should also be found on the interior on a data plate (a paper label with a picture of the United States)

If you don't find HUD certification numbers, it may not be a HUD code home. Is there a steel chassis? If there is and it doesn't have a HUD cert number, you need to contact your client as the home may be an on-chassis/on-frame modular and not all lenders will accept these as Fannie Mae will not.

 

[Charles Knutson]

Is there a database that can identify the property from the serial numbers?

At the time of inspection, I didn't find the metal plates -- but there were 4 foot high snowdrifts on the rear of the property. Likewise, the crawlspace access was covered with 2 feet of snow -- it was inspected the the day after our first blizzard.

I did take a photo of the regional map in the pantry closet -- the data I have all points to manufactured as opposed to modular, but I'm not 100% certain.

 

[Doug Wegener]

Contact manufacturer

Is there a database that can identify the property from the serial numbers?

At the time of inspection, I didn't find the metal plates -- but there were 4 foot high snowdrifts on the rear of the property. Likewise, the crawlspace access was covered with 2 feet of snow -- it was inspected the the day after our first blizzard.

I did take a photo of the regional map in the pantry closet -- the data I have all points to manufactured as opposed to modular, but I'm not 100% certain.

Contact the customer service department of the manufacturer with the serial numbers and they should be able to identify it for you. They may be able to give you the HUD #"s as well as the make/model. Assessor might also have some data on it.

BTW, if its modular I wouldnt think it belongs on the 1004C form.

 

[Jerry Bone Jr]

Page 2 of the new 1004C form has some NADA specific questions, in addition to the Marshall and Swift cost approach section -- getting that part filled out is the specific question right now.

If you use Marshall Swift, the NADA section does not need to be filled out.

 

[PamPearsall]

If you do want the NADA information and you don't have enough appraisals of MH to make it worth ordering the NADA CD's or books you can always call NADA and for $50 they will run the NADA information and fax you a cost sheet for your subject. They accept credit cards.

I have had to do this on some prospective assignments where I didn't have the books.