Restrain
Elite Member
- Joined
- Jan 22, 2002
- Professional Status
- Certified General Appraiser
- State
- Florida
Normally, this would be posted under the HUD list, but I need some solid, quick help. I've been appraising for umpteen years and this one's got me buffaloed.
Subject: Manufactured home on 3.8 acres, existing FHA loan, looking for a REFI with another lender. Purchased home last year for $149,000.
Problem: Land value is $137,500 +/- which means that the land will exceed the usual Land/Value ratios and will violate HUD guidelines for excess land value. However, it does not violate the usual excess land guidelands, where the site is a readiliy marketable site, so we're looking at value as opposed to excess site size. The home has a remaining physical life of 30 years, but the remaining economic life is dependent on when someone buys the property and demolishes the manufactured home for a new custom home. This may be 1 year, or it may be 10 years, but the trend in the area is new custom homes in excess of $500,000.
Of course, the manufactured home sales that I will have to use are 10+ miles away due to the high land values in the area of the subject but those can be answered.
Question: How to write the report and how much land can be shown with the subject, and can I get around the land/value ratio problem?
Subject: Manufactured home on 3.8 acres, existing FHA loan, looking for a REFI with another lender. Purchased home last year for $149,000.
Problem: Land value is $137,500 +/- which means that the land will exceed the usual Land/Value ratios and will violate HUD guidelines for excess land value. However, it does not violate the usual excess land guidelands, where the site is a readiliy marketable site, so we're looking at value as opposed to excess site size. The home has a remaining physical life of 30 years, but the remaining economic life is dependent on when someone buys the property and demolishes the manufactured home for a new custom home. This may be 1 year, or it may be 10 years, but the trend in the area is new custom homes in excess of $500,000.
Of course, the manufactured home sales that I will have to use are 10+ miles away due to the high land values in the area of the subject but those can be answered.
Question: How to write the report and how much land can be shown with the subject, and can I get around the land/value ratio problem?