Does anyone know why Form 1004C (Manufactured Home Appraisal Form) has Yes/No check boxes for each comparable sale in the market grid to indicate whether the sale is a manufactured home or not? I was under the impression that this form was used in appraising manufactured homes and that all the comparable sales used for a manufactured home appraisal had to be manufactured homes.

Due to the fact that some appraisers have used site built homes to support value of manufactured homes. As you know fannie mae does not see this as a good approach and many appraisers have lost their license using such comps to prop value.


Rusty

It is an easy way to prove fraud (or at least incompetence) when you check "yes" when the answer is "no".

FNMA permits one stick-built house to be used as a comparable sale. (paragraph 304)   FHA also allows one stick-built house. (Appendix D, page 64)

John

The boxes are there just to make sure that you are truthful about whether the comps are MH's or not.

You have to have at least 2 MH's as comps, but you are allowed to have a stick-built as a third comp, if you can provide sufficiently credible explanation as to why.

Be careful, however, because lenders are getting much more difficult to please on MH's. The last lender I did one for is STILL asking for comps, even after receiving 2 more on top of the original 6 I put in the appraisal. I finally went back a year and a half, hoping that the one and only other MH sale within that entire city limits would work for them.

Marty

Last week I put a stick built home in as a 4th comp. Due to features the MH had that none others had. The stick built was low quality and sold for less then two of the MH comps. I did disclose & explain.

pnalley I know that you know what your doing!

Me, I would never use a site built home with a manufactured home. I would turn down the assignment than do it that way.

Not saying I am not wrong, I am saying I would not, could not and will never use site built homes with a manufactured home.

Its just the way I am.

Rusty

I've included a low quality site built home as a 4th comp before. But just to show that a MF'r could NOT be worth $120,000 like "their last appraisal said".

Response to William L. Not all of us get request for appraisals out of a seminar setting. Someone has to do the tough ones. But I guess the easy ones are faster to turn around and therefore more money in the pocket. Remember though, some people have to live in MHs and therefore deserve just as much consideration from the appraisal industry as your pocket comp appraisals. In some areas it is imperative that stick built homes are used as comps simply because no other types are available. Just explain, explain and explain again. The lender has to make the decision whether to accept. You have to make the decision whether it is a good appraisal or not. Just follow FNMA guidelines.

Akins...

I have been doing this for awhile and I also have never used a stick built home for a mobile home...even if I have to go back two years in sales history I would do that first. I just have a hard time believing that we have the same type of buyer for a mobile home as we do for a stick built home. I am a firm believer in apples to apples when it comes to finding comps..

Mike P.

What about modular?

Part XI: Property and Appraisal Guidelines
Copyright, 2001-2006, Fannie Mae. All rights reserved.

XI, 304.01: Manufactured Homes (08/24/03)
Any dwelling unit built on a permanent chassis and attached to a permanent foundation
system is a “manufactured home” for purposes of Fannie Mae’s guidelines. Other factory-built
housing (not built on a permanent chassis), such as modular, prefabricated, panelized, or
sectional housing, is not considered manufactured housing and continues to be eligible under
the guidelines stated in this Guide.

XI, 304.02: Other Factory-Built Housing (08/24/03)
A. Modular home. It must be built under the Uniform Building Code that is administered
by the state agency that is responsible for adopting and administering building code
requirements for the state in which the modular home is installed.

A modular home is a stick built home built at the factory and put together at the site. It is probably better built than an average and some good quality stick built homes built at the site.

Some appraisers have used modular homes as comparables, but they are not manufactured homes.

"Response to William L. Not all of us get request for appraisals out of a seminar setting. Someone has to do the tough ones. But I guess the easy ones are faster to turn around and therefore more money in the pocket. Remember though, some people have to live in MHs and therefore deserve just as much consideration from the appraisal industry as your pocket comp appraisals. In some areas it is imperative that stick built homes are used as comps simply because no other types are available. Just explain, explain and explain again. The lender has to make the decision whether to accept. You have to make the decision whether it is a good appraisal or not. Just follow FNMA guidelines."
Email: hartappraisals@bellsouth.net


Now just a few questions- Adkins- have you ever taken a real manufactured home course to expand your valuation ability? Do you carry the NADA manufactured home cost book? My guess is no to both questions. You statement about "seminar setting" is funny. I work in rural Georgia. We do appraise the hard ones. We don't have a 300 home subdivision here. We have to explain why were using comps over five miles and I have never used a site built home with a manufactured home.

Thats the problem with appraisers today. They speak about what they have no knowledge of. I got caught running my mouth about a dock, once that was my sign. To say that a 2x2 floor system is similar in consturction to a site built home is silly.

I would say before you post anymore about manufactured homes take a course on their valuation. Lincoln has a course they even show you do an appraisal, at one time FHA required you to have a course if you were doing new manufactured home being brought to a site.

Please take a course before you get into trouble. Shooting from the hip will cost you and your client money. There are always comps of manufactured homes, they may be older than six months and they may not make your value but they are there.

Rusty