Newer Manufactured home with old comps

[Tiffany Gibbons]

$100 ? Idk where that came from.

The inexperienced appraiser (probably the cheapest the AMC could find) adjusted a random figure of basically $100 per year on the difference of age between the 2020 subject and the 1990s comparables on the first appraisal, according to OP

 

[Tiffany Gibbons]

Okay, but your sales are very weak. Like a limp noodle. Yes on land value on the stick built.

If you incorporated cost in SC approach, it would help based on a recognized source. Like manufactured homes have recognized sources on cost/depreciation. Similar to a car in some ways.

Most of the areas I have the most newer manufactured homes on a foundation with acreage are close to 2 other county lines, I look within a wide radius and adjust for different acreage value between the counties. I will go back further in time if a similar newer home sold older than 12 months and use that as support for the value as well. There just are not going to be many sales of new generation manufactured or modular homes that would have 6 acres and a shop. Also, I look at active and pending sales as there are not many homes priced below $300,000 period in any of the counties I serve because all are outside Nashville. First time buyers were hit hard to qualify for loans with the rate increases. Some lenders still snub their noses at manufactured home loans, though some have recently changed their tune. Some of the newer custom homes, wouldn't even know it was not a stick built unless you know what to look for.

 

[spurl6494]

I appreciate all the feedback. I pulled all sales up to 120 miles or so of similar quality homes on any amount of land, but the closest ones are 50-80 miles away. Many of them are nearly identical in quality/age and other factors. I just can't see them using anything that far away, but I am at least hoping they will maybe lean on 1 to show some type of difference.

Overall, I'm just hoping to see some type of acknowledgement of value of construction and finishes that do not resemble camper/RV quality finishes that have been painted over to look like that's not what they are.

Our immediate area consist of well kept manufactured on one side of the road, 400k-1mil+ on the other side of the road lol. I think that is why the property has gone over so well on the market---you are not getting into any 1200+ sf house fit to live in one acre here for under 350-425k. The whole time we were under contract with the first buyer, we had random people pulling up the drive trying to get info on it.

I did go back and reviewed the cost approach in the report. It put us at 250k overall, but Marshall Swift "replacement value" for the home was 60k under what the home sells for now before dealer markup (someone at the manufacturer was kind enough to white out the dealer mark up and send it to me lol). It doesn't seem like they gave the cost value any weight in the FHA appraisal.

I also hope that my posts don't come off as me being critical of the process. There are some definite issues, but I honestly feel like they are more with whomever did the appraisal either not being as...aware...of differences in these types of homes over the past few decades. Really even today there is a huge variance in quality from one to the next. Older ones are pretty common in the area, but zoning doesn't allow them in many of the neighboring areas.

I will try to update once I hear anything on the new contract's appraisal.

 

[Tiffany Gibbons]

I appreciate all the feedback. I pulled all sales up to 120 miles or so of similar quality homes on any amount of land, but the closest ones are 50-80 miles away. Many of them are nearly identical in quality/age and other factors. I just can't see them using anything that far away, but I am at least hoping they will maybe lean on 1 to show some type of difference.

Overall, I'm just hoping to see some type of acknowledgement of value of construction and finishes that do not resemble camper/RV quality finishes that have been painted over to look like that's not what they are.

Our immediate area consist of well kept manufactured on one side of the road, 400k-1mil+ on the other side of the road lol. I think that is why the property has gone over so well on the market---you are not getting into any 1200+ sf house fit to live in one acre here for under 350-425k. The whole time we were under contract with the first buyer, we had random people pulling up the drive trying to get info on it.

I did go back and reviewed the cost approach in the report. It put us at 250k overall, but Marshall Swift "replacement value" for the home was 60k under what the home sells for now before dealer markup (someone at the manufacturer was kind enough to white out the dealer mark up and send it to me lol). It doesn't seem like they gave the cost value any weight in the FHA appraisal.

I also hope that my posts don't come off as me being critical of the process. There are some definite issues, but I honestly feel like they are more with whomever did the appraisal either not being as...aware...of differences in these types of homes over the past few decades. Really even today there is a huge variance in quality from one to the next. Older ones are pretty common in the area, but zoning doesn't allow them in many of the neighboring areas.

I will try to update once I hear anything on the new contract's appraisal.

120 miles! 50-80 miles! No way. I meant like at most 10-15 miles in a rural area near a county line, etc. Wow. Yes, keep us updated.

 

[sputnam]

You know that it's okay to report that your appraisal is less reliable because of the lack of relevant market data... right? You can also provide a range of values as well as the point value. We do not create the data that is availabe to us... we use it to support our opinions. Our opinions can only be as 'good' as the data they are based on. There is no regulation or law that requires appraisers to be right in their opinions. The requirement is to support those opinions.

 

[spurl6494]

You know that it's okay to report that your appraisal is less reliable because of the lack of relevant market data... right? You can also provide a range of values as well as the point value. We do not create the data that is availabe to us... we use it to support our opinions. Our opinions can only be as 'good' as the data they are based on. There is no regulation or law that requires appraisers to be right in their opinions. The requirement is to support those opinions.

That is exactly what I have learned in this process!

The house we are buying is in town in a well-kept 60 year old neighborhood. The appraisal had 5 comps within a half mile and 6 months, barely any adjustments were needed or were made other than minor square footage and 1 car vs 2 car carport etc.

It's easy to see the subjectivity in the one on the manufactured hom due to all the adjustments that had to be made

 

[Tiffany Gibbons]

That is exactly what I have learned in this process!

The house we are buying is in town in a well-kept 60 year old neighborhood. The appraisal had 5 comps within a half mile and 6 months, barely any adjustments were needed or were made other than minor square footage and 1 car vs 2 car carport etc.

It's easy to see the subjectivity in the one on the manufactured hom due to all the adjustments that had to be made

There were just a lack of similar sales that would be considered market alternatives (that the appraiser would be permitted to use), due to the built in 2020, the finish, the acreage, the shop, etc. And most people buy the land and custom order the manufactured home, and they tend to stay there awhile after putting in a shop/barn, etc. In contrast, the house you're purchasing has more mass market appeal so there are that many more similar sales. So not necessarily subjective, just using what sales were available. Maybe a more similar home has closed by now, has happened before.

 

[Vermonter]

pulled all sales up to 120 miles or so of similar quality homes on any amount of land, but the closest ones are 50-80 miles away. Many of them are nearly identical in quality/age and other factors. I just can't see them using anything that far away, but I am at least hoping they will maybe lean on 1 to show some type of difference.

Sounds counterintuitive, but I find these to be the best comps in these situations. Find the most similar property no matter how far. Extracting a market reaction for differences in location is usually more accurate and reliable than trying to extract the difference in new vs old manufactured homes in a market with no comps.

Btw....I can guarantee $100/per year was pulled out of thin air

 

[spurl6494]

New appraisal meet contact price, which was a 30k difference

I'm relieved, but tempted to beg (or to reimburse them some $$) for a copy of the report just so I can see it for comparison purposes. Maybe I will after closing

 

[spurl6494]

New appraisal meet contact price, which was a 30k difference

I'm relieved, but tempted to beg (or to reimburse them some $$) for a copy of the report just so I can see it for comparison purposes. Maybe I will after closing

Met value I meant