Reproduction Cost Vs Replacement Cost

[Big ole Boy]

Jo Ann,

In the aggregate, and think of a large pool of properties - 1,000's and 1,000's

A site built has a much "longer potential economic life" than a manufactured home.

 

[CANative]

I'm doing one now on a proposed MH on land. The dealer REFUSES to provide the dealer invoice. The client/lender says it's not destined for fannie/freddie.

Should I just push on, or should I make an issue about the dealer invoice? Should I prominantly state that the dealer has refused to provide this information?

 

[Big ole Boy]

Naw,

Just go ahead and back-in to the cost approach with the M&S - find some pictures and match it up .... so that it works ... (sarcasim)

 

[Rich Heyn]

Greg,

If it's not going to the secondary market, then certain supplemental standards, like getting the dealer invoice, don't apply.

However, if the lender asks you to complete a 1004C, for whatever reason, make sure to read item #10 in the supplemental certification. It states that you received and analyzed a dealer invoice, if new construction.

It's surprising how many appraisers are not aware of this requirement. You, to your credit, have apparently digested 03-06. Good man.

Rich

 

[CANative]

Thanks, Rich. Knew I could count on you.

The problem is that the lender DOES want the 1004c even though it's going to a private investor (although he states that later on he may try to get a new loan after completion which would go to the secondary market)

This situation appears to be a potential powder keg... Dealers are going to fight us in providing that invoice because they certainly don't want their retail customer to see how much they paid for the unit.

 

[Tim Hicks (Texas)]

Originally posted by Greg Boyd@Feb 3 2004, 06:08 PM
This situation appears to be a potential powder keg... Dealers are going to fight us in providing that invoice because they certainly don't want their retail customer to see how much they paid for the unit.

Now, I wonder why that would be??? :evil:


Never trust a tin man.