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Picking Comps for a Manufactured House

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Joshua Fookes

Junior Member
Joined
Jan 15, 2003
Professional Status
Certified General Appraiser
State
California
I am newbie appraiser, but thought this might be appropriate for you veteran manufactured home experts :D

My supervising Appraiser was doing an appraisal of a double wide MH. When we went out to look at comps he was checking out some site built homes as well as MH. I asked him if it was ok to use a stick site built home to a MH.

The response was to the effect that, the stick built lot is so close to and so much like the MH's lot, and the sq/ft was close, and the sale was recent, etc, etc.

I've been reading a lot of the threads in this forum, and have learned a lot (still a lot to learn) :? It seems that you are all pretty firm about MH comps for MH appraisals, Do you ever sway from that.

What if there weren't enough MH's that were similar to subject?

Any insight is much appreciated. I'm here to learn.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Go further in distance - go beyond 12 months for sales.

Make sure you are comparing MH to MH.

If your supervisor says otherwise, start looking for another supervisor.
 

rtubbs

Junior Member
Joined
Jan 15, 2002
Joshua, don't overlook Fannie Mae Selling Guide. Site-built comps are permitted but not preferred. Some UWs will insist on MH only.
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I used a site built home one time but never felt comfortable about it. Now I just use manufactured homes. In my market a house is just not comparable. Often times my comps may be 20-40 miles apart. But in my area location doesn't make as much difference in sales price. With a few exceptions of course.
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
All of the above are good answers. If there is something unique about the subject property's location and there are no other manufactured comparables, it might be acceptable to include the site built homes as a fourth or fifth comparable. But I would definitely include at least three good comparable resales of manufactured homes to form a basis for a value conclusion. Then, add lots of comments about why those site built homes are in the report. Most underwriters won't accept them and then you'll be wasting valuable time and effort to revisit the report to include additional comps that should have been in there to begin with.

Good luck.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Fannie Mae's Section 304 requires a minimum of two comparables that are the same building code (HUD), similar number of sections, etc. Woud a prospective buyer of the site built home, equally consider the manufactured home? If the reaction in that market is that they would never consider a "trailer", then site built homes should NOT be used as comparables. The manufactured home might even be superior to the site built homes in that specific area (at times they are in my area), but then that buyer reaction kicks in and only manufactured homes are reliable indicators of value. Even if they are miles away or very dated sales.
 

Farm Gal

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

'it depends'.

In some segments (particular counties) of my market: some of the very high end maunfactured homes OBVIOUSLY sell for as much or nearly as much as a similar 'finish level' site built home. I can assure you that some of the manufactured's are better built :roll: .

As mentioned, it *may* be reasonable to use one (or more) site builts IF you have at least two manufactureds as primary in your report.

I would be very very careful about what weight the adjusted values were given... 8O . paying careful attention to what the manufactured sales adjust out at.... in other words don't go calling value based on JUST the site built sales! Fannie got burned and is watching this issue...

If you get uncomfortable best ask yourself why!
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
Joshua

This is a little late but there is a bunch of good advice above.

Once in a great while I have to use a site built house for a comp on a HUD Code Multi-sectional house. When I do, there is an adjustment made in the sales grid for quality. I take that right from Marshall & Swift. It is the cost difference between the site built house new and the manufactured house new. This is then applied based on the sq footage of the comp. Using a site built as the comp for a manufactured house, it is a negative adjustment.

Sometimes, the opposite is true where the subject is a site built and a comp is a manufactured house. Usually, this is on a lake, river or similar acreage where site is very important to marketability. In this case, the adjustment is just the opposite. Over the years, this adjustment has been fairly consistent in relevancy. However, it is used sparingly and usually as a 4th comp or where I use 4 or 5 comps.

Whatever you do, you certainly should make a quality adjustment in the grid for the difference between the manufactured house and the site built or modular house.
 

Joshua Fookes

Junior Member
Joined
Jan 15, 2003
Professional Status
Certified General Appraiser
State
California
thanks Richard,

that was a helpful bit of info too. I would not have thought about the M&S method for coming up with an adjustment.

As it turns out this house was right on the River where the lot was very valuable. I need to see how my Sup handled it.

This list is great!
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Take a good course in Manufactured Housing as soon as you can as part of your continuing education program. We all have experience in our local areas but what is happening in your market is most important.

Pay particular attention to types of manufactured housing.

Modular (HUD)
Modular (CABO)
Mobile Homes
All are often identified by MH which can be confusing.

Some modulars are built to a higher standard than inexpensive stick built homes, ie Marshall/Swift low or fair quality. If manufactured homes are not common to the area it could be that the only available comparables would be stick built. Generally speaking it is not prudent to use stick built homes IF modular or mobile home sales are available.

Good luck.
 
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