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Old junked MFR's on property

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ALICE CHRISTENSEN

Thread Starter
Freshman Member
Joined
Jul 20, 2003
Professional Status
Licensed Appraiser
State
Michigan
On my subjects property there are 2 old manufactured homes junked, just sitting around. Deducting cost of removal from the property value seems the thing to do with explanation attached. Any other thoughts anyone?
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
That would be correct. If they were ever hooked up to a water system or sewage system you may have to check if it was a well or a septic system..

Be careful and describe the property fully...
 

ALICE CHRISTENSEN

Thread Starter
Freshman Member
Joined
Jul 20, 2003
Professional Status
Licensed Appraiser
State
Michigan
Thanks Stefan, and I will again have a very long addendum. CYA always!
 

The Sheriff

Member
Joined
Mar 21, 2007
Professional Status
Certified Residential Appraiser
State
Arizona
In Arizona, if they are not permanently affixed and taxed as real property, then I would note as such and comment the mobile homes were considered personal property and were not given any value in the report.
 

Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Is you subject a HUD code home??

Most lenders I have found don't want to know about the junk MFG's but I note them and take pictures of them in my reports just in case the owner might try and make use of them later. Check for Wells and Septic system that are nonconforming if these were ever hook to them.

It they are just there and were being gutted for some reason then they are personal property as stated before.
 

ALICE CHRISTENSEN

Thread Starter
Freshman Member
Joined
Jul 20, 2003
Professional Status
Licensed Appraiser
State
Michigan
They're not connected to any utilities.
Personal property? Personal junk. One mans junk.......
Also have a tree leaning/lying on roof of barn, yippee.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
Just disclose all you see and all you know about the property. I'd give cost to clear them off, maybe someone else would just ignore them.

What if they aren't mentioned by the appraiser? A year down the road the purchaser defaults and the lender makes a trip out to see the shiny property they lent money on and find the barn roof caved in and two junky mobile homes on the property. Someone more than likely will have to pay to remove the junk and repair the roof. If you don't disclose all, then you may be expecting a bill from the client or worse yet, a letter from your state board.

Disclose, explain, and take lots of pictures.
 

ALICE CHRISTENSEN

Thread Starter
Freshman Member
Joined
Jul 20, 2003
Professional Status
Licensed Appraiser
State
Michigan
I would never just ingnore these things. I have a ton of photos. I plan to disclose all and discount for removals. I'd like to call my client and give them a heads up on the condition of this property, they're a good client.
 

The Sheriff

Member
Joined
Mar 21, 2007
Professional Status
Certified Residential Appraiser
State
Arizona
Disclose them... but I don't see why they have to be removed... That should be at the lender's discreation. Do you require a person to remove junk cars on their lot? Probably not because they are personal property and the person might be working on them for all we know... The lender should be the one making the call on this... Just disclose it as you stated you would.

If this was an FHA deal, then removal most likely would be necessary, unless, the junk mobiles are utilized as storage units and all plumbing fixtures and cabinetry are removed.
 

Ultraviolet

Senior Member
Joined
Dec 31, 2002
Professional Status
Retired Appraiser
State
Arizona
Disclose them... but I don't see why they have to be removed... That should be at the lender's discreation. Do you require a person to remove junk cars on their lot? Probably not because they are personal property and the person might be working on them for all we know... The lender should be the one making the call on this... Just disclose it as you stated you would.

If this was an FHA deal, then removal most likely would be necessary, unless, the junk mobiles are utilized as storage units and all plumbing fixtures and cabinetry are removed.


Depending on the location of the property and type of "junk" on the property, it is most likely a zoning violation in my area.

I had a property recently where the tenant was collecting and selling scrap metal, with a business license. A neighbor called to complain and the city suspended his business license until he corrected the zoning violation by removing all the scrap from the property. It's amazing what people will tell you if you smile and look interested ... :laugh:

It is also a zoning violation (not to mention a potential environmental hazard) to work on cars in residential areas throughout my entire county.

I would stick to disclosing violations and measuring their impact on value without requiring any removal, unless the client requested "subject to".
 
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