Overbuilt Manufactured

[Sierra Wolfpack]

I received an order for a manufactured home located in a senior community. The subject is 3700+ square feet of living area. The largest comparable sale to have sold within my community in the past 10 years is 2600+ square feet. Even a 25 mile radius expanded search does not result in a market sale larger than 2600 SF.

I am considering the subject to be overbuilt.

As the subject is located in a senior community, having 3700+SF could be considered a negative; how does an appraiser determine if there is negative marketability, and how does he/she assign a negative value to it?

Any suggestions/tips help. Thank you.

 

[CANative]

Four or five sections?

That's an extremely complex assignment. Are you still a trainee and if so does your supervisor have existing experience in this type of assignment? It's a requirement for GSE underwriting.

First off, are there ANY manufactured homes in the development of that size (ask management or comb through data sources) whether or not they have sold or not?

One way of dealing with it is to stop adjusting for GLA at the largest sale you have.

 

[Sierra Wolfpack]

Thank you for the response. No I am not a trainee, I have not adjusted my forum license.

It is 4 sections. The highest house in the area, that I, and another appraiser, could find was 2600 square feet. Our idea was to stop adjusting for GLA at that square footage, and I wanted to verify with others to see if that was acceptable.

Thank you very much for it.

 

[CANative]

There is probably a favorable reaction to the larger size but it is not supported by adjustments. You can reconcile to the highest sale price or the highest adjusted sale price to recognize and/or account for the larger GLA. Someone would probably pay more for a larger house. It stands to reason.

 

[CANative]

I've been asked to bid on this one:

62 acres (after completion of a pending lot split)
10 acre lake
More remote than you can imagine.
5,000 sf "main house" which is a 3 section MH built in '07 site over an 1,800 sf walk out basement.
Large warehouse with an apartment
Being used as an Airbnb (gets great reviews)
9 hole golf course that the owner built (6 holes then over the lake for the last 3 holes.)
Multiple outbuildings and cottages.

I'm thinking $3,000 to $4,000?

 

[Carlos Danger]

May as well have them throw in a nights stay and a round of golf, too.

 

[Don Clark]

Thank you for the response. No I am not a trainee, I have not adjusted my forum license.

It is 4 sections. The highest house in the area, that I, and another appraiser, could find was 2600 square feet. Our idea was to stop adjusting for GLA at that square footage, and I wanted to verify with others to see if that was acceptable.

Thank you very much for it.

Are there any non MH's of similar square footage in a similar setting? There is no hard and fast rule that a MH has to be compared to an MH. As a matter of fact, if it is not a HUD Code Manufactured Home it is not a MH. It may be factory built but unless it is a HUD Code MH, that term does not apply. Are there any Complex Modular Homes(which is what the subject would be if not built to the HUD Code) in the market? Use them if there are any. Seems to me that in California something similar could be found as the state seems to love non stick built homes. I grew up there but have not lived there in over 50 years. On several visitis I have seen some modular's that were breath taking.

 

[Sid Holderly]

If you have enough sales plot size and price to see if there are any breaks in the line/curve or major deviations from which to base an adjustment on the $/sf of LA if applied. The live may be even/uniform or show major shifts in value per unit.

 

[Elliott]

Any sales of stick built similar in size, where you could make a comparison? Estimate the lower price per square foot for large homes compared to regular sized homes, then apply the factor to your subject. Its not a lot of evidence, but lenders like to see you trying.

 

[Don Clark]

Any sales of stick built similar in size, where you could make a comparison? Estimate the lower price per square foot for large homes compared to regular sized homes, then apply the factor to your subject. Its not a lot of evidence, but lenders like to see you trying.

Excellent!