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Stick Built Comps For Mobile Home?

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Matt McCormick

Thread Starter
Freshman Member
Joined
Nov 9, 2004
Professional Status
Certified Residential Appraiser
State
Oklahoma
Client is saying FHA will allow this, my gut tells me no. There are other mobiles in area that may be considered comps, but would require a condition adjustment. Please advise.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
1st off is your subject pre -1975 MOBILE HOME?

Is your subject POST 1975 MANUFACTURED HOME?

This makes a big difference. Pre 1975 Mobile Home is Personal Property, Post 1975 Manufactured Home is personal property until properly attached to the ground, then it's real estate.

Always, always use like kind comps for like kind subject if at all possible. Using older farther away like kind comps is much preferable to different type comps close by.

What does your market say? Are newer manufactured homes being accepted in the same manner and for similar type dollars as a stick built?
 

Zmcraney

Junior Member
Joined
Oct 17, 2007
Professional Status
Licensed Appraiser
State
Mississippi
This makes a big difference. Pre 1975 Mobile Home is Personal Property, Post 1975 Manufactured Home is personal property until properly attached to the ground, then it's real estate.

Always, always use like kind comps for like kind subject if at all possible. Using older farther away like kind comps is much preferable to different type comps close by.

What does your market say? Are newer manufactured homes being accepted in the same manner and for similar type dollars as a stick built?
ditto what he said. I knew FHA would lend on mobile homes if they met a certain criteria but in our market there is a substantial difference in the price/sq. ft. of a stick built home versus a mobile mansion
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
It is a bad idea. I would use ANY M.H sales and adjust them before I would use a Site built. I would go back further, and explore farther away too. I don't think it is too often that these homes compete for the same buyer.

Opinions vary. Trust the guy from the trailer park capital of the world...
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Non-ditto to Mr. O.

Date of construction has nothing to do with personal property/real property. The date that is important is 1976 (June 15 to be precise). This is the dividing line between mobile and manufactured. Personal property if the site is not fee simple, probably real property if fee simple and the MH is connected to a septic system and utilities and definitely if the foundation system meets the local requirements for being classified as permanently affixed. This goes for both mobile homes, manufactured homes and modular homes.

HUD/FHA will not insure properties with mobile homes. Period.

I have used site built homes as one of the comps in an MH appraisal on rare occassions.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
Greg, I stand corrected on the date, thanks. I tried to oversimplify my answer, I bow to your superior ability to hit the nail on the head!

The difference between MH and Manuf Home are dramatic. HUD/FHA won't loan on MH and neither will a lot of lenders. In my area a Manuf Home has to be attached permanently to a foundation of some type, (approved) and has to be taxed as real estate to qualify as real estate.

I was requested to complete an appraisal, the second one, for a purchase. The first appraisal was terrible, value was exponentially above realistic value. I inspected the property in January in ND, it was cold! I found out it was a pre June 15, 1976 double wide. I didn't want to but dug out the door to the crawl space and shimmied in, it wasn't properly attached to piers or anything! I checked with the county, the site was taxed as real estate with no value to the improvements. My value was next to nothing which really pleased the lender, the REALTOR on the other hand was extremely upset! He had an agreement to purchase the 'real estate' for his inflated list price if it didn't sell. No weasel clauses could get him out of paying for a very expensive piece of real estate and a decrepit old, lop sided mobile home!

That was a while ago, but I remember it fondly!
 

Zmcraney

Junior Member
Joined
Oct 17, 2007
Professional Status
Licensed Appraiser
State
Mississippi
In my neck of the woods if it rolls up on wheels its mobile!! You can put perfume on a skunk but its still a skunk
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Stefan,

I meant no disrespect. I was just posting on the fly.

Yes. I agree that mobiles will sell for SIGNFICANTLY less than HUD codes and the reason is mostly lack of financing options.

But next to nothing due to the foundation issue? I'm not sure about that. In my areas a proprietary foundation system that meets the local requirements for permanent affixture can be installed in a couple of days for about $2,000 and recorded the next day.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
And the installation and foundation can be retro-fitted prior to close of escrow. The appraisal report for FHA is completed "subject to" inspection and verification by a licensed engineer that the installation and foundation is in compliance with FHA's Permanent Foundation Guidelines for Manufactured Homes. Fannie Mae and Freddie only require those to meet local and state requirements. And if the appraiser has a concern, that report would be completed "subject to".
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
Nothing to add to Greg's and Joanne's posts.

Note: in Mississippi, would that include my little red wagon? (if I had one)
Wheels and axels must be removed (along with the hitch) for it to be acceptable for regular financing.
 
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