• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

"On Frame Modular" Home

Status
Not open for further replies.

Wally Jones

Thread Starter
Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Okay, I've just seen my first one of these. Steel undercarriage, towed to the site in two sections, placed on block and pier foundation with tie-downs, and in all respects looks like a nice manufactured home. However, it appears to have been built to something similar to UBC standards and the plans are stamped with "Not A Mobile Home" across the front. No HUD Certification Labels or manufacturer's data plate. The county records identify it as a manufactured home (they still use the term mobile home) and show its status as "Real Property" for taxation. However, I think they're mistaken. I'll be talking to the manufacturer today to confirm what code it was built to.

The question is this. Obviously, the ideal situation is to find three or more of these "on frame modular" sales across the street from the subject that all sold yesterday. Well, that ain't gonna happen. With the type of modular home I've inspected in the past, I've had some success in finding other modulars and in most cases have used at least some "regular" stick built homes for comparables. Frame with siding when I could find them. This particular animal seems to warrant a different approach. I know we need to compare apples to apples, but this may be a case of comparing a Jonathan to a Granny Smith. The typical buyer, in my opinion, for the subject property would most likely be looking for a 1700 SF manufactured home and (at least initially) wouldn't be asking if this was an "on frame modular" home. If I go by past guidelines for modular home appraisals, I should be using stick built comparables if I can't find sufficient modular sales. Seems in this case I might be guilty of a misleading report. I know the subject is built to a more stringent code (supposedly) than a manufactured home, but I sure don't think the typical buyer will be looking for that difference.

Am I off base? Should I be using stick built comparables and just write lots of explanation about why I did? Or use manufactured comparables (also with lots of 'splaining) which, on the face of it, at least, appear to be more similar to the subject? Okay, or the third option, use both with even more explaining?

Thanks for listening. As that Daniel Boone guy once said when asked if during his exploring unknown territory he'd ever become lost, he replied: "I've never been lost, but I have been a might confused for several days." (Paraphrased, don't hit me.)
8)
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
First, explain exactly what the subject is, how you followed up with the manufacturer, etc. If you can't find another modular, I would use 2 conventionally built as similar as you can find and 2 manufactured. After you grid them and make all the other adjustments, the bottom lines will lead you to any 'design and appeal' adjustment that might be justified due to it being a modular.

Hope this helps. It's what I've done, it makes a lot of sense to me, and I've never been questioned using this technique.
 

Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
I did a refi on an "On Frame Modular" a couple years ago. I used doublewides for all my comps and made 3 enemies for life, the borrower, the LO and the owner of the mortgage co. They had some great comps that I neglected to use.....all site built ranches....yeah, right......IMHO "On Frame Modular" = DW Trailer no matter what they want to call it. Of course the quality might vary somehwhat. I'll wait for the experts to weigh in on this one, but I always keep quality of construction in mind with these monsters and it hasn't failed me yet.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
If you can't find comparables for a property due to its uniqueness, it's time to do a "survey". Call some local realtors and lenders. Get the realtors input as to how they would list the home and what they would market it to. Talk to the mortgage companies as to how they would lend on it. Then document this in your report as to why you used the sales that you did (the perception in the market is that this is a manufactured home, blah blah blah). At least that way you have a basis beyond just YOUR opinion.

Good luck.

Roger
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
One manufacturer in Arizona has been building those for about fifteen years to get around zoning regulations. Areas are zoned in some parts of the state that prohibit mobile homes and homes constructed to HUD code. Homes constructed to UBC code on a steel undercarriage and towed to the site, wheels, axles, tongue removed could be placed in those areas. They would have a title just like a home manufactured to HUD code and the same assessment procedures would be used. A mixture of comparables (with manufactured homes predominat) would be necessary for a fee appraisal. Just explain everything in your report!! With Fannie Mae's new guidelines, two of the comparables (could be solds, listings, expired, pending, withdrawn or maybe just an illustrative one) would need to be the same number of sections and building code. And if none are available, lots and lots and lots of explanations!
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Had one this summer .. wasn't towed to site .. didn't have that kind of frame. Had a steel perimeter, but wood floor joists. However, entire interior was 'mobile home quality' in that it had the photographed panelling, plastic casements, etc. Was obviously one of the first attempts at a modular home constructed by a tin can producer ..
 

Wally Jones

Thread Starter
Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Thank you all for your quick and thoughtful responses. It helped to clarify my thinking.

I just got off the phone with the county appraiser who initially looked at the subject when it was completed earlier this year. After listening to my explanation of the differences between a manufactured home and this syle of modular, he's headed back out to look again and will no doubt be changing its tax status from manufactured to site built. Although, as he said, it still looks like it could have the tongue and axles replaced and pulled down the road. I was tempted to tell him about Jo Ann's stick built homes marching down the highway, but he seemed overwhelmed enough for one day. :crazyeyes:

Again, thank you!

8)
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
ooohhhh.

Better duck back under that water, Wally

The soon-to-be-unhappy Homeowner is gonna be :eek:nfire: at you!!

and may come out :2gunfire:
 

Wally Jones

Thread Starter
Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Hi Lee Ann!

She already knows. She even tried to 'splain it to 'em but gave up. I can't wait for the call from the underwriter wanting an explanation for the comp pictures of wobbly boxes and site built homes in the same report at which time I'll be hard pressed not to say something like "Oh, you still don't actually read the addendums I spent so much time researching and explaining why I used different comparables?", but they wouldn't understand my sarcasm so I'm sure I'll be good and not do such a thing.........heh, heh, heh. 8)
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
:lol:

Glad to hear your hide isn't in danger....

My current favorite phrase to idjit LO's is

"My goodness, I just hate it when those file clerks remove the addendum pages of my appraisal before it gets to your desk. Give me your e-mail or fax number and I'll get you those addendums right away... You should particularly check paragraph 3 on page two of the addendum where it explains all that"

(which by the way I NOTE on the front of the file before I put it to bed :twisted: )

and in the back ground you can hear 'flip, flip'....

and they ALWAYS give me the fax/email etc :changes:
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks