What to Do. What to Do...

[Terrel L. Shields]

Private transaction. REO property a contractor bought at tax sale, remodeled the kitchen and new flooring. I cannot see the under carriage but it clearly started out life as a single wide with vaulted ceiling. Then sometime since 1985 it was added on...twice. One end and one full side so that it now is a 'blended" part MH and part stick. HUD/FNMA not applied. Private sale, non-conforming 15 year note likely (definitely it isn't secondary market because this bank does not do that) so this is a question of valuation, not regulation. What's it worth?

More to the point, what do you do when you have no comparables that are blended MH/stick built. The sale price is below the typical stick built house of the same age and above any older MHs. More like that of the newer MHs in the area (and this is an area of predominately MHs and older stick builts, just outside a city limits and in a small rural subdivision.

There is no MLS listing of it recently. But was listed in 2009 which makes no mention of the MH undercarriage. So, my choice is a non-modified MH, or a small older low quality stick built for comps. Any strategy suggestions?

 

[Dublin ohio]

Private transaction. REO property a contractor bought at tax sale, remodeled the kitchen and new flooring. I cannot see the under carriage but it clearly started out life as a single wide with vaulted ceiling. Then sometime since 1985 it was added on...twice. One end and one full side so that it now is a 'blended" part MH and part stick. HUD/FNMA not applied. Private sale, non-conforming 15 year note likely (definitely it isn't secondary market because this bank does not do that) so this is a question of valuation, not regulation. What's it worth?

More to the point, what do you do when you have no comparables that are blended MH/stick built. The sale price is below the typical stick built house of the same age and above any older MHs. More like that of the newer MHs in the area (and this is an area of predominately MHs and older stick builts, just outside a city limits and in a small rural subdivision.

There is no MLS listing of it recently. But was listed in 2009 which makes no mention of the MH undercarriage. So, my choice is a non-modified MH, or a small older low quality stick built for comps. Any strategy suggestions?

Use both. Not much else you can do

 

[J Grant]

Private transaction. REO property a contractor bought at tax sale, remodeled the kitchen and new flooring. I cannot see the under carriage but it clearly started out life as a single wide with vaulted ceiling. Then sometime since 1985 it was added on...twice. One end and one full side so that it now is a 'blended" part MH and part stick. HUD/FNMA not applied. Private sale, non-conforming 15 year note likely (definitely it isn't secondary market because this bank does not do that) so this is a question of valuation, not regulation. What's it worth?

More to the point, what do you do when you have no comparables that are blended MH/stick built. The sale price is below the typical stick built house of the same age and above any older MHs. More like that of the newer MHs in the area (and this is an area of predominately MHs and older stick builts, just outside a city limits and in a small rural subdivision.

There is no MLS listing of it recently. But was listed in 2009 which makes no mention of the MH undercarriage. So, my choice is a non-modified MH, or a small older low quality stick built for comps. Any strategy suggestions?

You can use both as comps.
Its your call as an appraiser if, despite its underpinnings as a MH, if the modifications make it function and appeal more like a stick-built house. Disclose everything about it to CYA.

 

[alebrewer]

I can't believe there are no 'blended' home sales in your neck of the woods, T. Got 'em all over the place down here...

 

[Bobby Bucks]

I get a trouse about once every other a month. I generally use 2 MH sales and one stick built. Sometimes I use 4-5 sales with one sale over 12 months, sometimes use a sale a time zone away in distance. In polite speak I explain the subject isn't a cookie cutter, adjustments are high (both ways) and that God did not intend for trailers to transition into stick built homes. I also save the bizarre properties I've appraised for future comps because eventually someone does buy them.

 

[BRCJR]

It is a property I would consider looking for similar quality modular dwellings. If you could find on rail modulars that would be even better.

 

[J Grant]

Might include one new MH house, one old MH house, three similar stick-built houses... for a mix of comps.

I am not of the rubber stamp a contract crew. However, a contract price exposed to the open market can be a value indicator.

"More consideration is placed on comps.... ( narrative ). Then add: "The subject, after having been remodeled, was exposed to the open market and has a contract at arm's length terms, which is an additional value indicator."

 

[KHS445]

That is the great thing about using a narrative report format and doing non-GSE appraisals. Report in detail what you are appraising, mention the lack of true comps, and then explain why you picked the comps you did and why you made the adjustments. As others have suggested I would include couple of trailers and then a couple of similar condition manufactured/stick built homes.

In mine and I would imagine most everyone’s experience the lower the market value, generally buyer will place more emphasis on livability/condition and less on design/construction.

 

[Surf Cat]

REO property a contractor bought at tax sale

Then sometime since 1985 it was added on...twice.

I'd definitely look at the dollar amount of the sale prior to the REO transaction. Maybe a sale transpired after 1985 so, those stick additions would have already been done. Then compare that transaction and sale price back then in relation to other manufactured homes and lower quality stick builds.

Otherwise, like everyone else stated, a mix of Manufacturerd and stick builds.

 

[Fernando]

I can't believe there are no 'blended' home sales in your neck of the woods, T. Got 'em all over the place down here...

I still can't believe Texas is a non disclosure state. How can you confirm sales price?