Quality of construction adjustments

[Boater Bob]

Have an order for proposed manufacturred new construction of a 70 x 28. No manufactured sales remotely proximate. Only similar sales are stick-built. What, if any, are the potential quality of construction adjustments for stick-built vs manufactured?

 

[Mark K]

FWIW, the last matched pairs analysis I did, 15+/- yrs. ago, showed approx. 15% for stick built vs. manuf. in this area.

Manuf/modular in this area comprise less than 1% of total sales; they are not highly regarded or desired.

 

[KHS445]

When acceptable market information is not available I rely on Marshall & Swift Costs Estimates for many different quality adjustments, be they residential like this or commercial. I am sure there are other sources and may even be some online that are free. Just remember it may not always be a $ for $ adjustment.

 

[Terrel L. Shields]

I would want to run the NADA ticket on the unit and find its RCN
Then compare to new construction RCN of similar size to make an adjustment
However, that does not factor in any resistance in the market for manufactured houses... i.e.- in my area aka Tornado Magnets.

So personally, I would want to go back in time and/or distance for more MH sales of newer homes. Which is exactly what I am doing to an appraisal today. I am on my way out to look at the subject and find the comps...which are several miles away except for 1.

 

[shrubberyvaluation]

Have an order for proposed manufacturred new construction of a 70 x 28. No manufactured sales remotely proximate. Only similar sales are stick-built. What, if any, are the potential quality of construction adjustments for stick-built vs manufactured?

Go back in time or look for most similar market areas.

 

[Terrel L. Shields]

Finishing up a MH appraisal tonight - sales were remarkably close - all within 8 miles or so. 2 in one town, 2 in another. New MH set. HMs were 2, 5, and 14 years old... Adjusted using sensitivity about $45/SF and less than $1 per SF per year of effective age and adjusted for land and a couple outbuildings - CA $186,000 SA $179,000. Easiest MH I've done in a while.

 

[Boater Bob]

Declined the FHA order. Preliminary findings showed massive P...I....T...Arse

 

[Terrel L. Shields]

Declined the FHA order. Preliminary findings showed massive P...I....T...Arse

I've never regretted turning an assignment down.

 

[sputnam]

I don't recommend it but... I have seen a Lender approve a loan based on an Cost Approach only appraisal of a manufactured dwelling. The appraiser correctly stated that no sales of similarly constructed dwellings were found. Our job, as appraisers, is not to make sure the loan is approved and can be sold to a GSE. Our job is to develop and report an opinion of value based on the best available data and accepted appraisal practices. With some properties... in some locations... you simply cannot meet all the 'wants' unless you start making things up. We do not create the market.

 

[Tom D]

The only difference between the two types of homes is the date they were built. According to HUD, a factory-built home prior to June 15, 1976 is a mobile home and one built after June 15, 1976 is a manufactured home.
What is the downside to a manufactured home?
Some of the downsides of a manufactured homes are the following; - Value May Depreciate - Reselling may be difficult - Financing can be complicated
What are the advantages of manufactured homes?
- Affordability - Structural Strength - Versatility - Construction Timetable - Fast Installation - Energy Efficient and Eco-Friendly - Acoustics - Low-Risk Construction - Contractor Benefits - Options for Customization - Lower Prices for Luxury
i suppose you could do matched pair sales of similar new construction cost to build similar GLA homes verses what manufactured cost to build. that would be 1 way of determining quality adjustment, maybe. then you have a marketing issue. there may be other land mines that you could miss. remember, the state only cares to know how you arrived at, or didn't do one, for that adjustment, not your lack of manufactured housing experience. so, is the happy buyer today, the angry owner tomorrow. and i'm in that jury, your guilty for not knowing what you should have known. it is a potential existential threat.