Two Doublewides on One Parcel ?

[Charlotte Dixon]

My brain is either disengaged or worn out. This assignment came today and the property consists of two doublewide manufactured homes, each on a permanent foundation, on 4 acres of land. I checked zoning and 2 units are allowed in this AC (Agric.Conserv.) AR (Agric.Residential) district. So, it's not a 2-4 family, it's not one unit. How would you all handle this? What format? I'll have to admit: I don't know how to approach this. :?

 

[Tim Hicks (Texas)]

Explain that it is not typical. Suggest to the owner that it would be worth more subdivided. Let them decide. Appraise the newest, largest as the main home and the other an additional improvement (guest house) with lower contibutory value versus its cost (like a pool, barn, workshop). Either that or pull three comps with two double wides on one property out of your back pocket. I have had to do this a couple of times. The only solution was to appraise one main home with one guest house at a very diminished value. The agent agreed it was the best, the underwriter agreed it was best unless I could provide two sales with two MH's on one parcel and the owner accepted it quite willingly each time because they were difficult properties to sell. Good Luck.

 

[rtubbs]

Charlotte, If the appraisal is for financing purposes, I personally wouldn't touch it. You'd just be backing yourself into a corner. BTW, what is the purpose of the appraisal?

 

[Charlotte Dixon]

Purpose of Appraisal: For Investor's Portfolio. He buys many properties at sheriff sales.

 

[larryhaskell]

Charlotte:

If two units are permitted on a single parcel why is it not a 2-4? How would you view the property if it were two stick built homes?

 

[Charlotte Dixon]

Charlotte:

If two units are permitted on a single parcel why is it not a 2-4? How would you view the property if it were two stick built homes?

The 2-4 family form doesn't appear to be suitable for this type of assignment, stick built or manufactured. I would equate using a 2-4 family form for this to trying to fit a square peg in a round hole, and the report would be confusing. Both doublewides are new (under 6 months) and are the same size. I'm now considering a narrative, although I don't do many of those.

Regarding 2 stick built homes: I've done those, but the second home has typically been smaller and viewed as a guest house. I've used a 1004 for those.

 

[Mike Garrett RAA]

I would do it on a 1004 and call one unit"guest house". How is it being used? Is it income property? Do you remember my famous...."Run, Charlotte, run like the wind"?

 

[wyecoyote]

Charlotte,

Had one of these twice and agree with how Mike states treat the lessor of the two as a guest house. The one I did was in tin buck too and was nothing but a headache. LO stated "well the last appraiser just added the cost of the other as the market suportable data". My statement "well why didn't you use the last appraiser". LO "he does not appraise anymore but he was really good" True story about 2 years ago. The other one I did have two manufactured houses on one parcel sell and used it as my first comp. That had no problems flying through underwriting. and that is the comp you needed. I'll give it to you just make a location and a time adjustment should only be about a 18 months old.

Ryan

 

[Jeff Horton]

I would just do a narrative. Gives you more flexibility and the chance to explain exactly what you did.

 

[Joker]

My $0.02
Since the homes are newer and are of similar size and design, I would suggest doing it as a 2 family. Sometimes we forget to put ourselves in the shoes of the buyer for unique properties. What would most motivate a potential buyer to purchase the property? IMHO, the motivational factor would be income, combined with the ability to split the properties and cash in on a bonus. The URAR does not provide for adequate development of the income approach. If I were (and I have been) faced with a similar situation, I would appraise it as a 2 family. Since the homes are newer, the cost approach is applicable, the motivational factor for purchasing is income. so that approach is applicable. I am assuming comparable sales are limited, but you can establish a value for similar single homes on 2 acre lots. Double that value and take a discount for entreprenerial profit to establish a value by the sales comparison. Since the appraisal is not for a federally related transaction and not being used by a lending institution, you need not worry about underwriters kicking it back to you and asking for "better comps".
"If it ain't been done before, no one can argue with you on how you did it" :lol: