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Pre-76 marketability after the Fannie "New Rules".

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Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
OK Folks, in MY market there have been darn few manufactured or modular sales of ANY kind in the last year... There have been some new or newer home sales, but pre-76 sales are pretty thin on the ground..

Sales (the few available) appear stable a with no specifically observed depreciation or apreciation atypical of the market at large...in other words in my stable slowly appreciatiing market this appears a non-event. Did I mention that I have only 1 'truely comparable' sale on which to base this analysis 8O (there are some REO demos, but only one honest to Pete sale of a decent well maintained pre-76 home on small acreage...)

What I AM wondering is about observations of effect on a more national basis:

1. IS there 'typical' purchase money financing available for pre-6/76 homes subsequent to the Fannie announcement?
(and who is making these loans?) Are there any atypical financing costs attributable to definition as a 'Mobile'?

2. What (if any) effect on sales prices of otherwise good condition or even significantly upgraded homes of this type has occurred?

3. When you get a 'trouse' (defined as a mobile home -pre-6/76- construction, which has additions and improvemnts...), that otherwise appears as comparable and as desireable as site built homes in the immediate area, WHERE the immediate area has shown NO past discrimination between very high end mobiles and 'trouses' ... what if any effect is being observed on the market?!?!?!

help?
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
These sell down here by owner financing or on a bank loan where they hold the note (generally small banks). You're not going to get secondary market mortgage financing on these things. The value on the home is so low that it becomes primarily a land value sale anyway.

Roger
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I'm afraid I can't be of much help. (I know, what else is new? :roll: )

In our market, most mobile (pre-1976) homes have disappeared due to natural attrition, are found in mobile home parks (and are treated as personal property since the lots are rented) or are being used to house seasonal agricultural workers on large tracts of land near the agri-business (but these don't appear on any property records).

The ones that I've seen which have been turned into "trouses" have generally been able to receive financing through a local bank where the owners have done business for years and the folks have enough credit and good faith they could refi the family cat if they wanted to. :wink:

In short, I don't have enough market data to make any valid observations. Wait a minute.......what's that? Sounds like hoofbeats! That cloud of dust on the horizon............the cracking of a whip.........could it be?? It is! It's The Queen of the Wild West Wobbly Box! The woman who knows all, sees all, answers all! Calamity JoAnn to the rescue! :2gunfire:
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Like Roger said, the ones I've seen are financed by small, local banks with money from the vault.
If they are on an acreage lot, it is ususally cash. But the home doesn't stay in place long. :wink:

As for trouses, those deals ususally die really quick when "the appraiser :evil:" finds out what is there and "kills the deal :evil:". Then the deal-a-tor scrambles to get comps, and use many yelling tactics, all the while telling you how much you are costing these nice buyers (ie: there goes my commission). :crazyeyes:

I don't know anyone lending on pre '76 stuff.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Afraid I am not much of a rescuer. In my area, the only one willing to loan on a pre 1976 mobile home is the local Credit Union. We don't have small home town banks in Arizona, they were all bought up by the national banks. So only private individuals quite frequently are the only source of funds for non HUD mobile homes. Although several years ago, one of the national banks had me complete an appraisal assignment on one of Bobby Buck's trouses. It was a 1965 single wide with two 1955 travel trailers at right angles on each end, a roof put over the middle which then became the living room with one exterior wall. The single wide was the parents bedroom and bath, kitchen and dining room. The travel trailers became two bedrooms for the kids. And then a second bath was built jutting out from the living room. Had to go through the walk through pantry, storage, utlity room to get to the bath. The site built structures at ground level. The trailers still had all the wheels, axles, and tongues. Could see the rubber tires in the living room. Tongues made great coffee tables and supports for bookcases. All on 13 acres in the flood zone. Never heard a word after I sent in the report. So if the lender is willing to loan on a pre 1976 home, just provide lots and lots of explanation. Some of your comparables might have to be models built to HUD code but prior to about 1980-and an adjustment because the subject may or may not have been built to a voluntary building code. Manufacturers, although meeting the HUD code, didn't start getting serious about developing houses comparable to a site built house until in the early 80s.
 

Farm Gal

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

Ok anyone else? I mean SURELY some one has come up with a more national lending program for these things?

My subject by the way is a 74 built what we used to call "double wide" and would now describe as multi-sectional. It has been thoroughly remodeled inside and out inclusive of a kitchen (of a quality I'd like to have in MY house), beefed up floors, exterior siding, very plush carpets and very high end vinyl and tile finishes, remodeled baths, sunroom, etc etc etc. and and and and

A year ago I had no problem at all comparing it to middle to high end rural homes in the immediate area because that is patently how it would have been perceived by the 'typical buyer'. Loans were available at the same rates, money was OUT there.

But now if purchase money ISN'T available there is a beeeeg problem! or not!

What I am trying to figure out is WHO is lending, WHAT the 'kicker' is in terms of interest rate or costs of financing and little things like that 8O

Any one????

(rising note of desperation...) I mean I have to come up with SOME value on the thing.... and while I kinda think it isn't what it used to be I am not at all sure what it is...

I may resort to a wimp-out Extraordinary Assumption that financing IS available at 'market rate? :?

any thoughts?
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Can you have a long heart to heart talk with the underwriter? Your client might not be able to make a loan (then your problem is solved because they will cancel the order). However if you are dealing with an experienced loan officer, he or she needs to do some digging to find what financing is available for a pre 1976 home (and that will provide future info for you). If that loan officer finally finds a lender willing to make a loan, then try to talk to the underwriter. If after all that, you still have the assignment--maybe a mixture of everything. Pre-1976, late 1970s, double wides, triple wides, site built similar in quality (any Jim Walters handy), etc, etc, etc. Older sales, active, expired, canceled, pending, withdrawn listings might have to be thrown in there. Even another property for illustrative purposes that has never been listed for sale or sold but would be a perfect match to your subject. This is an order that the client isn't going to be able to match a round peg in a square home and can't be a 24 hour turnaround situation. So present the loan officer and the underwriter with the facts--and then go from there.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Jo Ann...
I tried that ... believe me I tried.

Problem is there IS no specific underwriter yet, just an eager beaver LO who has now been fully educated in the perils and pitfalls - no great surprise he didn't have a clue before I told him :roll: ...

Ditto Susie Homemaker being apprised of situation...
(At least it is a COD... )

I wanted to make sure she REALLY reallly understood that she may be throwing her money away. I appraised the thing over a year ago for a certain large lender and she is mad at them AND the rates have dropped and believe me my 'your house may not be marketable' speeech went over like a lead balloon.... but she wants ME and ONLY me to appraise it : because she trusts me....( .

I would be a lot happier if I had (as is more typical) just made everyone mad and they went away and left me aloooone.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I haven't had a pre 76 for ages....until this week!

They call this one a HUD modular, but we know that isn't the case. Fannie Mae repo. Even has hot water baseboard heat...but no boiler. Beautiful 1.5 acre timbered lot in an area where they are building $300,000 to $500,000 stick builts less than 1/2 mile from this pig with lipstick.

Couple of questions. What is the typical physical life for a pre 76? How woudl you deal with the land value exceeding the value of the improvements? There is a stick built addition (family room) and a two car attached stick built garage....what do I have here??????
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
How woudl you deal with the land value exceeding the value of the improvements?
....what do I have here??????
Bulldozer Bait. In transition, limbo, hold on men..... wait until you see the green in their eyes before firing.
If it's that bad, fergit physical life...... it has no economic life. No CPR needed, it's coded out. :lol:
 
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