Newer Manufactured home with old comps

[spurl6494]

Good afternoon, I'm hoping to learn a little by posting!

We had a situation recently where an appraisal for an FHA came back well under contract price. We have a 2020 manufactured home on 6 acres with upgraded construction/finishes (higher roof pitch, brick foundation, full sheetrock walls/flat ceilings, wood cabinets, residential doors/windows/bath fixtures, HVAC vents in the ceiling etc.).

There are no sales of newish homes in years, other than 1 home that was very low end in comparison.

The appraisal used 15-35 year old comps, all of which are what I would say are built to the older standard of manufactured homes. The only age/quality adjustment made was a $100 per year for each year of age.

My question, moving forward...we are past that appraisal, and now have a conventional appraisal coming up... I'm just wondering if that is typical of adjusting for age, it if it could have been a one off or something to do with FHA requirements.

I'm just trying to prepare myself for what may happen. I'm no way do I think the home is comparable to stick built, but is there really only a 2-3k overall difference as compared to what seems to be a much different product thru the lens of an appraisal in situations like this?

For reference, we are asking in the 260s (1550 sq ft home, 400 sq ft of new decks, 25x25 metal building with 9+ft ceilings on a concrete foundation with 2 driveways, farm fencing)... Surrounding similar size homes on land are 380-450k and up.

It's just like thoughts on how you anyone might look at comps or age/quality adjustments here.
Thanks!

 

[Terrel L. Shields]

MH's built after 76 meet HUD code standards. Those older do not. MHs are a nightmare to value and many appraisers won't do them. Age seems to be inconsequential many times. Condition is everything. So, I see 1987 MHs bring more than 2010 units time and time again.

similar size homes on land are 380-450k and up.

So are they all Manufactured too? Stick built is a different animal. But without looking at the full report, few of us can really tell you if $100 a year is sensible although my gut instinct is that it is not. But the real test is to determine the effective ages of the comparables accurately then translate that to a number. Sounds like they did a PFA - pull from air - adjustment. I'd question the lender and ask for a review by a review appraiser.

 

[sputnam]

Is $100/year of difference typical for the age adjustment? No way to know. Adjustments are (supposed to be) extracted from market data that is relevant to the subject property. None of us knows what the appraiser actually did. What we do know is that not every appraisal and appraisal report is 'pretty'. Appraisers don't create the market. Appraisers use available data to analyze the market in order to arrive at an opinion of value. There are a lot of different methods to do that. The best methods in a particular situation depends on what market data is available.

 

[Tom D]

we have 100+ year old homes which have been rehabd to a c2 condition. there is no age adjustment here because the rehabd home is completely new inside, not comparable. just the outside, joists and basement are original. buyer would never look at age, they look at condition. and some at a certain age point, without modernization, do not compare to a new or rehabd house. here the adjustment would be only on condition which in affect may relate to age. i'm not sure what you are looking at, but is it more of a condition adjustment. i don't remember buyer's talking about age when i sold real estate, but here most homes are in a certain age range. the issue came about as neighborhoods became gentrified, now a bad word.

 

[Tiffany Gibbons]

Goodles the address of the comps and see if there are any interior photos on Zillow or Redfin, etc. I have done appraisals on 2 manufactured homes on foundations recently that had been completely renovated inside and out, new foundations, roof, HVAC, literally every single thing replaced. This would make them similar condition and quality. The form we have to use is terrible and the appraiser might have commented somewhere in the addendum about that. Make sure you have all the pages.

 

[Tiffany Gibbons]

Rerun delete

 

[Tiffany Gibbons]

Delete, double post

 

[Tiffany Gibbons]

Delete

 

[Tiffany Gibbons]

Google the address of the comps and see if there are any interior photos on Zillow or Redfin, etc. I have done appraisals on 2 manufactured homes on foundations recently that had been completely renovated inside and out, new foundations, roof, HVAC, literally every single thing replaced. This would make them similar condition and quality. The form we have to use is terrible and the appraiser might have commented somewhere in the addendum about that. Make sure you have all the pages of the report. And don't use stick built houses as comparable sales when listing for sale. The appraiser would not use those on an FHA appraisal.

 

[Tim Hicks (Texas)]

Tiffany is in reruns.

I have never adjusted for age on manufactured homes. I do adjust for condition. My only advice is to look for other similar age manufactured homes in the entire county. Stating that the only one similar age manufactured home sold low doesn't help. I would rather travel distance for a similar age manufactured home than just adjust all my sales for condition or quality.