Reproduction Cost Vs Replacement Cost

[CANative]

Not sure yet, but I think the problem with NADA is that is primarily designed for Title I (personal property) valuation. So their cost data is coming from what wholesale dealers, private party buyers and REO sources are paying for these units out of parks and dealer lots (like used cars.)

 

[Big ole Boy]

Greg,

Thank you,

I will talk with NADA further and mention what you have said.

 

[Big ole Boy]

Greg,

As I read the NADA definition of how they obtain value, which I posted .... it clearly states that none of the sales are a result of foreclosure or auction.

By the way, What is Title I? what does this mean?

 

[Big ole Boy]

Greg,

OK OK, I read it again...

uh, I will find out if these sales are coming out of parks - that makes a lot of sense... because it would be consistent with how they gather data for other types of vehicles - thanks,

If you are right, that would make NADA virtually useless in my area.

 

[Big ole Boy]

Greg,

Saying that is true.... would that not be the 'purest market data set' for the BOX?

for replacement cost?

I mean why would it matter?

Site improvements are added in seperately.

 

[Big ole Boy]

Greg,

I have been doing this long enough to just go ahead and recognize the

"I don't want to know idos" of the appraisal industry.

The manufactured home industry trys to hang by the coat tails of the site built home market by convincing people that their is no real difference in the economic life of thier product ( 20 years ?) - thats a joke.

A site built can always be refurbished and lengthen its economic life well beyond a 100 years or more ... not with manufactereds ...

.... its simply apples and oranges .....

functional obsolensense is "built in" to the manufactured home once it is set-up on the lot -

mobile home parks? - I've got one - its the size of Florida - and it looks like one too.

The appraisal community has 'collective denial'.

Like a little lap dog with its tail between its legs and its head hung low with its hand out high reaching for its greezy little fee from its Gaint Master the Manufactured Home Industry.

 

[Jo Ann Meyer Stratton]

Title 1 is the FHA program for manufactured homes financed as personal property. Units located in rental parks. FHA will only accept NADA for a Title I finance.

By the way I have seen fifty year old mobile homes that look brand new. I have seen three month old site built that look like it should demolished, totally unsafe for habitation. It all depends on the original quality of workmanship and the quality of maintenance during the structures life time.

 

[Tim Hicks (Texas)]

Methinks you are worrying too much about the NADA. :blink: I would be more worried about the manufactured home seller than the NADA. I don't even use the NADA and I would trust it more than any manufactured home dealer or seller. Regardless, the most weight should be placed on "open market arms length transactions" from the immediate area.

Don't trust faxed closing statements either. I have been faxed closing statements that have been altered, closing statements for re-fi's and closing statements that have type of financing blank.

 

[Restrain]

1. If a home is being bought out of a park, then you are dealing with personalty and it commands a lower price than homes on land. That's because it's essentially like a car. It can't be refinanced very easily, and will never be eligible for Fannie Mae financing (can't be moved to a new site and get Fannie Mae financing).

2. You won't get any appreciation on a home in a park, period. It only depreciates. (Florida and California excepted).

3. The market recognizes a BIG difference in value between homes in parks and homes on land. Homes on land are real estate in the view of the buyer, whereas the buyer of a home in a park considers it short-term, like a rental.

Just my observations.

Roger

 

[Big ole Boy]

Tim,

Methinks too much some times ...