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The Affidavit of Affixture will file at closing- Arizona

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celilola

Thread Starter
Sophomore Member
Joined
Jan 9, 2011
Professional Status
Certified Residential Appraiser
State
Arizona
2015 DWMH being sold, never affixed legally with paperwork, currently taxed as personal property, but it is permanently attached to the site. Completed the appraisal subject to affixture. In Arizona, this means that the owner relinquishes the deed to the DMV, etc, records an Affidavit of Affixture and then the subject is taxed as real property instead of personal property.
The lender asked the following:

" I have attached the engineer cert stating its permanently affixed to the foundation. I also uploaded the affidavit of affixture that will be recorded at closing. Can you make this AS IS?"

So they are saying that the Affidavit is filled out, but not recorded and they are saying they will record @ COE, is this acceptable? My dilemma- If Im saying its AS IS - but not affixed with the County as real property- then Im saying that something taxed as personal property is AS IS for my real property appraisal. I talked with a colleague and she said its reasonable to assume its going to record @ COE so she doesnt require it.

Thoughts?
 

Mark K

Senior Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
Is there any reason they cannot record the document prior to closing?

Personally, I would not make that assumption if the property value is adversely affected without it being recorded or if the terms of the loan require it. On one hand its a lot loan, on the other it includes the improvements.

They want an 'as-is' value based on an assumption but in reality, it would be based on a hypothetical condition. You know that the document is not recorded.
 

CANative

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Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Tell it like it is and what their plan is. Quote the source and keep the email or com log snip in the workfile.

The taxation is not the issue. The issue is that recording an instrument (whatever it's called in any given jurisdiction) serves as constructive notice to the world that the improvements are considered part of the real property and cannot (legally) be removed without notifying anyone with an interest (mortgage holder, for example.)

Some call a factory built house with the paperwork chattel and others call it personal property. For all intents and purposes it can be treated in the appraisal as real property because the intent of buyers and sellers is that the unit will not be removed upon sale - thereby giving it "permanency."

For example, an MH in a rental park might sell for $200,000 despite the improvements having a depreciated RCN of $35,000. The owner doesn't own the land, but there is no intention to move the unit. And the rental park CANNOT remove it as long as the rules of the park are followed and the space rental is paid. It used to be called "Blue Sky Value" or "In Park Location Value."
 

Terrel L. Shields

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May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
an MH in a rental park might sell for $200,000
That would be a question of can you call a moron buyer "acting prudently, knowledgeably"... what MH is worth $200,000 new used or old?
 

CANative

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Jun 18, 2003
Professional Status
Retired Appraiser
State
California
That would be a question of can you call a moron buyer "acting prudently, knowledgeably"... what MH is worth $200,000 new used or old?

Lot's of them sell for that and more. Just the unit.

Some MH's in parks near where Hatch lives and works sell in the high $300,000's to mid-$400,000's. Yet the dwelling itself might only have a "blue book" of less than $100,000. The extra $200l comes from it's location in a particular rental location and that is driven by the amenities of the park.
 
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Econobot

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Joined
Aug 9, 2019
Professional Status
Certified Residential Appraiser
State
Colorado
Sounds like a delayed closing if you don't mark it "as is"...not your problem but not doing it will likely anger the client. Pretty crappy that the client puts you in this position but it is what it is...
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
The value is the value and the fact that a $25 paper hasn't been recorded should have no impact on the opinion of MV. I don't see the need to imposed a condition on the appraisal for this of thing.
 

Econobot

Junior Member
Joined
Aug 9, 2019
Professional Status
Certified Residential Appraiser
State
Colorado
The value is the value and the fact that a $25 paper hasn't been recorded should have no impact on the opinion of MV. I don't see the need to imposed a condition on the appraisal for this of thing.
except for that little fact that it's not actually "real property"
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
except for that little fact that it's not actually "real property"

So what? It has no impact on the opinions and conclusions (including opinion of value.) Perfection of the title is on the lender, not the appraiser (this is a post closing requirement.) Although the lender MAY use the CofO from the appraiser. In this case, the client is asking for the "as is" value which should be the same regardless of the title work.
 

Econobot

Junior Member
Joined
Aug 9, 2019
Professional Status
Certified Residential Appraiser
State
Colorado
So what? It has no impact on the opinions and conclusions (including opinion of value.) Perfection of the title is on the lender, not the appraiser (this is a post closing requirement.) Although the lender MAY use the CofO from the appraiser. In this case, the client is asking for the "as is" value which should be the same regardless of the title work.
So we should start valuing tractors, flower pots, outdoor furniture, plow trucks, atvs, etc. These items do have an impact on value in the eyes of market participants but we don't acknowledge them because they aren't real property. I understand you're angle but it's technically bogus, not to mention it's pretty pathetic that someone (even agents involved) can't be bothered to establish real property for their sellers right off the bat, instead (because of bogus appraisers who cater to clients/owners/borrowers/agents) they expect the appraiser (why wouldn't they, the other appraiser did/do) to fluff out a skewed appraisal based on what they need. Believe me I understand the difference in purged manufactured and permanent manufactured, I see them alot. There in fact is a difference in value mainly brought about by the inability to finance (for less than 20% down) manufactured houses that are not purged. In theory, and because your access to buyers has substantially increased (with 0 down, or minimal down payments) you now have a greater pool of potential buyers; what happens when demand increases (ceteris paribus)?? Prices go up... The fact you claim buyers don't recognize a difference (means nothing) but is exactly why appraisers exist, to point out what the layman is unable to perceive. Additionally, what's the cost of a permanent foundation and the engineering required to complete it? That's not free...and depending on how the house was installed they might have some serious work to do. I've been to quite a few properties where the owner was required to do a lot of work to make porches/decks self-supporting and modifying foundation components if not adding them, even for refi work. Too bad, so sad, you want to compare your cheap manufactured to site built (generally the expectation), then put the necessary work in. There is a clown in my area that loves to compare brand new site built (stick) to manufactured but can't seem to identify why the prices are off by over $100k, he ignores it and the value of the manufactured houses is astronomical because the comps aren't comps, it's a contrived method to boost a value. Manufactured housing is basically junk (from what I've seen), the cheapest materials and least laborious outcomes can only lead to a low end product and it's always true that you get what you pay for. I went to one that the owner custom ordered (modular) and he was replacing all the switches/outlets. I asked him why, it's brand new? He asked me how much about wiring I knew and I told him to terminate the outlet using the screws not the hole on the backside (I know more than the average Joe)...he remarked that's right and then showed me an outlet (plastic with a slot for the wire to get smashed into). I couldn't believe the cheap shortcut but this is how they make money, sell the bare minimum for as much as they can get. Even the paint that's used might last 2 years in my area before it starts to wear and fade. I don't compare manufactured with site builts mainly because most market participants know the difference and simply won't waste their money. Alot of folks will rent or by lesser older housing because they know manufactured houses aren't investments, the thing will fall apart before they pay it off. Overall, I find it pretty sad that an appraiser is asked to ignore his obligations to compensate a seller who can't be bothered to establish real property and agents who obviously are incompetent about the financing of the parties involved, at a minimum.
 
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