No mfg home sales to support contract

[Terrel L. Shields]

No local bank in this area will accept a CA only for the appraised value

I guess that is a local thing. Have done several cost only valuations.

 

[caleb1004]

the primary reason I'm turning this one down is that very fact....lack of comps to truly compare with a brand new mfg home...makes it not reasonable to attempt appraisal on this property with the data available (unless i were to charge a $1500 fee for the necessary very in depth and multi tiered analysis that it would require to fully vet this) .....secondary reason: dont' want to face the wrath of the client when they see their appraised value 100k less than their already inflated CP....using a standard mfg home 1004....

 

[J Grant]

the primary reason I'm turning this one down is that very fact....lack of comps to truly compare with a brand new mfg home...makes it not reasonable to attempt appraisal on this property with the data available (unless i were to charge a $1500 fee for the necessary very in depth and multi tiered analysis that it would require to fully vet this) .....secondary reason: dont' want to face the wrath of the client when they see their appraised value 100k less than their already inflated CP....using a standard mfg home 1004....

The first reason is good -idk why a client would unleash "wrath" on an appraiser for valuing what a property is worth, including when an sC price is over 100k difference - lenders are professionals, and they know it can happen.

 

[Terrel L. Shields]

he first reason is good -idk why a client would unleash "wrath" on an appraiser for valuing what a property is worth, including when an sC price is over 100k difference - SOME lenders are professionals, and they know it can happen.

Fixed it for ya. A lot of AMCs and lenders do punish appraisers or pigeonhole them as "conservative" appraisers. A lot of lenders see the appraisal as an impediment when they have a borrower with a high credit score and great jobs or resources. They are much less concerned with the value of the property than the value of the borrower.

 

[J Grant]

Fixed it for ya. A lot of AMCs and lenders do punish appraisers or pigeonhole them as "conservative" appraisers. A lot of lenders see the appraisal as an impediment when they have a borrower with a high credit score and great jobs or resources. They are much less concerned with the value of the property than the value of the borrower.

That is true; however, it is also true that many want an MV opinion, and regardless, we have a job to do, and the more we wet out people in fear and pullout of assignments, the more they abuse us. IF we stand up for our value they might not like us but they would respect.

 

[Terrel L. Shields]

IF we stand up for our value they might not like us but they would respect.

I wish I had that confidence in our clients.

 

[Tom D]

from the factory built townhse mods i've seen, you wouldn't be able to know it's one, only if you did see the layout of the basement joists. seems in a more suburban/rural area it would be easier with a mod built home than finding a general contractor to build from scratch and price of getting those construction supplies to the site, and time frame..
my issue is that are there any kind of comps to do an appraisal with some new construction.
but hey, i'm privileged big city little row home appraiser.

 

[Mark K]

from the factory built townhse mods i've seen, you wouldn't be able to know it's one, only if you did see the layout of the basement joists. seems in a more suburban/rural area it would be easier with a mod built home than finding a general contractor to build from scratch and price of getting those construction supplies to the site, and time frame..
my issue is that are there any kind of comps to do an appraisal with some new construction.
but hey, i'm privileged big city little row home appraiser.

BITD, I used to do mfg/mod on occasion. Problem was the same with the OP, no comps. The few that existed were 'assembled' comps, i.e., mods set down on a lot and the 'sales' price entered into MLS or the county assessor is for the package, not a resale price.

Only lender was a local bank and I did some matched pairs for a study and found that the mods sold for about 10% less than similar stick built. The bank said OK, use the stick built and adjust -10%. These were existing or refi only.

The mod sellers had their own financing, Greentree Financial, or something like that. They were bought by Conseco and it was the primary reason Conseco went BK due to the huge number of Mod/DW defaults. The property owners owed the lender say $150K and after repo, they sold for $40 - $50K, often less.

 

[Charles West]

If you have to develop a multi-county data set to arrive at a supportable market approach, just tell the lender the fee needs to be adjusted upward bigly and that should be enough to scare them off.

 

[sputnam]

Yep. Cost Approach gets more consideration. Our job is not to meet the contract price. Our job is not to make sure the loan gets approved.. Never has been. We don't get to create sales. We have to use what there is. Some lenders will reject the loan based on your appraisal. Some won't. I was in a lender's office, was handed an appraisal report, and asked what I thought of it. They had already closed the loan but, the loan officer was curious. The subject was a new, mfg dwelling. The appraiser completed the subject section of the Sales Comparison grid and commented that there were no comparable sales within the county. The value was based solely on the Cost Approach. Lending rules have changed. Appraisal methods and theory, not so much.