How to Appraise Manufactured Homes

Appraising manufactured homes is different from appraising a site-built structure, but it also represents an opportunity for appraisers and owners to understand how to value these differences. This article will provide you with that knowledge as well as help you to navigate government regulation and find resources for locating comparable sales.

Things You'll Need

• Computer
• Manufactured homes comparable sales reports

Instructions

1. Determine if the property will be appraised as personal or real property. In general, personal property that has become a part of the land is considered to be real property. This means that the manufactured housing must become a permanent addition to the property to be appraised as real property. If it is not attached to the land, it is still considered to be personal.

2. Establish the intent of the manufactured home. If the home is not attached, the appraiser can also advise on the intent of the owner. If the appraiser believes it is the intent of the owner to permanently attach the manufactured home to the property, this will also satisfy the requirement.

3. Find similar properties. Like traditional real estate structures, the appraiser should find comparable sales in close proximity to the manufactured home to come up with a base case valuation. The best way to do this is with other manufactured homes. See Resources for a helpful website. Then use distinctive features to adjust the value of the house up or down. You can also use comparable sales to get an idea for the value of these features or use an estimate based on an independent contractor. Both will require documentation.

4. Request an expanded search radius if there are no manufactured homes in your area. Fannie Mae and HUD might also allow the use of site-built homes if there is no comparable information. You will be asked to document an exhaustive search for manufactured housing if you choose to use site-built homes for comparable home sales. According to HUD, you should look at MLS, probate records, other appraisers and developers before concluding your search.

5. Provide a separate land appraisal. If there is any concern about the difference between personal or real property, a separate land appraisal may be necessary. The NADA Manufactured Housing Appraisal Guide can help with this step as well. This is a very helpful guide. A link is available in Resources. You can also call 800-966-6232 for assistance. The guide is updated three times a year.

Tips & Warnings

• The NADA Manufactured Appraisal Guide is also available in CD-ROM.

• The cost of the NADA Manufactured Housing Appraisal Guide is $136 for one subscription, however, the cost goes down with each subscription.

References

• Appraisal of Manufactured Housing by the Alabama Real Estate Office
• HUD's Appraisal Standards

Resources

• HUD's Appraisal Standards
• NADA Manufactured Housing Appraisal Guide
• Manufactured Housing FSBO (Information for Comparable Sales Data)