Opinions please DW vs SW

[Joanne Rauenzahn]

I had an appraiser tell me yesterday - after I questioned why on a single wide appraisal all his comps were double-wide's - that it's only the square feet that are important. I told him I sure wouldn't live in a single wide but I would live in a doublewide of the same "size". He said everyone's not as picky as I am.

Opinions?

PS - we don't usually do these dang single wides and I don't WANT TO!!!! times are tough

 

[Lawrence R.]

Not just picky.

I would say that in my area, almost 80% of the suburban/borderline rural land is restricted against single wides. Most parks no longer allow them. I just had to lower the property values on a mobile home subdivision based on a land study I did for the Assessor's office proving that lots in the S/D that could support doublewides(based on setbacks) sold for more than the lots that only could support a single wide.

There is a stigma in the marketplace against single wides, at least in my market.

 

[Mr Rex]

Surprised you will loan on a SW. Very, very few lenders left that will, that in itself make the use of all DW comps inappropriate.

 

[Joanne Rauenzahn]

thanks.

Not many lenders WILL do them. We did a few based on land value alone but then you have issues re HMDA and such if it's a primary residence and it gets too screwed up.

We may come up with a program for them but it would be for low LTV's, high credit scores, reserves in place - and an arm rate with a higher margin. If we price them to make money and are conservative enough I think we'll be ok.

IN the meantime this SW is being moved to land that wasn't valued high enough to use that value for the loan - and I was surprised that this appraiser also completed the appraisal stating he never even inspected the single-wide. I sent him back out. Why would he take someone else's word that the condition was "above average"? HA!!! To me that defeats most of the reason for HAVING an appraisal!!

 

[VolcanoLvr]

Joanne.........IMHO...that appraiser is incompetent, and probably never has taken a course on Appraising Manufactured Homes.

The appraiser absolutely should have included S/W sales...if in fact, they exist. Might need to go back in time far enough to find nearby sales...and by nearby I mean 10+/- miles.

If they don't exist, but a series of S/W & D/W sales exist of similar size properties (at some point in the past), those sales should be analyzed to see if in fact there is a sale price difference. The difference could be translated into the adjustment used on the report.

The other issue is what's the date of manufacture? If pre-June 15, 1976, this critter is a MOBILE home, not a MANUFACTURED home built to HUD standards. Report comps should be similar to the type. (The appraiser probably does not know the difference!)

This is not a slam dunk report. You, as the lender, probably should give the appraiser extra time to do proper research.

Dave

 

[Tim Hicks (Texas)]

I think a double wide can whoop a single wide because he is like twice its size. Unless the single wide is really scrappy.

 

[CANative]

I think a double wide can whoop a single wide because he is like twice its size. Unless the single wide is really scrappy.

Like if Otis Campbell and Barney Fife got into a fight?

 

[Mary Tiernan]

Joanne -

What school district?

I am just north of you, Newaygo, Hardy Dam area, and I can tell you the manufactured housing market is very volatile right now. There is an oversupply of double wide manufactured houses in almost every market, and a lot of foreclosure sales.

No, doublewides should not be used for single wides in our area. The only time I have ever used a double wide for a single wide was when the single wide had a large site built addition, and then the double wide I used was an older one, and I only utilized one in order to bracket some amenities.

Being you are in the Kent City area, I can tell you that if the subject is in Kent City, there is currently an oversupply of available double wides in the Kent City area. There are no sales of single wides there that I recall (just did a report in the area), however, I would go to surrounding school districts for the single wide as primary motivation is the affordable housing. I would certainly have looked at Sparta, Cedar Springs, Tri-County, and Grant School District areas, surely there are single wide sales there.

Single wides have a larger foreclosure percentage in this area than double wides, but, double wides may catch up if the economy around here doesn't change. Also, single wides typically have the aluminum skirting versus the concrete block skirting of double wides - bedroom sizes are minimal, and functional adequacy is reduced.

Fannie Mae requires that the appraiser be experienced in the appraisal of manufactured houses, and that at least 2 similar manufactured houses are utilized in the sales comparison analysis. Sounds like your appraiser missed the boat there.

Kudos to you for sending the appraiser to look at the improvements. It would appear you have a skippy on your hands, or a very inexperienced appraiser.

 

[Joker]

It would appear you have a skippy on your hands, or a very inexperienced appraiser.

I didn't know there was a difference.

 

[CANative]

If you have skippy on your hands you've probably been eating the peanut butter out of the jar with your finger again.