permannet double-wide real estate appraisals

[michelle]

my husband and I are looking at a 1997, 1800 s.f. permanent doublewide on 1.6 acres of land in N. carolina. (currituck) The asking price is 112,900. Very nice home inside, and passed home inspecton.

My loan is contingent on appraisal and my real estate lady states that there may be a problem with the appraisal coming in at 112,900, which could in essense blow the whole deal if seller not willing to pay the difference and I am not. I live in a stick house now. if house in n. carolina doesnt close , then the sale falls thru on house im living in as i made in contingent on closing on new house.

I guess my question is do double-wide homes on permanent foundations w/ land depreciate even thou its taken care of? Wonder why appraisel would come in low. Granted it is a 7 year old home which when new may have costed 40000.00. An acre of land normally goes for 50 + an acre. thanks

[rmurray]

Appraisal is an art form..not a science...

The appraisal has little to do with the age..or the original sale price of the home..condition does count..but you say it is very good..

Appraisal tries to determine the value based on comparable sales in the neighborhood..What have similar homes in the area sold for in the last 12 months (a few banks will restrict the appraiser to comparing with the last 6 months)..The appraiser will have to search other resales within 5 miles of this home to develop comparable sales...He/she will then adjust the figures to make the comparable more similar to the one you want to buy..such as square footage..if this home is larger than the other that was sold the appraiser adds value..if this home has extra features..the appraiser adds...on and on...

Most lenders will restrict the appraiser to manufactured home comps...there has to be 3 comps..some will allow 1 to be a stick built home..The problem comes in very stable rural communities...Often there are very few resales at all...folks buy a home..live in it and die in it...This makes it very hard to appraise in some areas..

It is not uncommon for different appraisers to be over $15,000 different in their numbers...Some times one has to use more than 1 appraiser...It is best to find an appraiser who specializes in the area you are looking in...

Now if the appraisal does come up short..there are lots of ways to buy still..
1)..you could put more down..
2)..the real estate person could lower their commission
3)..the seller could lower their price
4)..the seller could hold a second mortgage
or a combination of the above...a motivated seller will be cooperative because all buyer will have the same problem..

You need to find a mortgage originator who specializes in manufactured homes..they will know the appraisers who specialize in manufactured homes in the area..The easiest way to find a good originator and appraiser is to ask a couple of new home dealers in the area..they will know the best mortgage sources and appraisers..Of course your real estate agent should be doing this...but often they are not too excited about manufactured homes (because the sales price is lower and they get less commission..)

You have shopped the market..if the price is fair...there should be no problem..Good Luck

[Linda]

I've been reading your comments , just curious, what is meant by "stick house?"

[jason]

Stick houses are built on site from the ground up

[rmurray]

"stick built" homes are those built on site...1 stick of wood at a time..it is a build ing industry term..but somewhat derogatory in nature..

[michelle]

Actually house/land appraised at 113,000 so everything worked out. Very happy in it. People seem to have so some sterotype about people who live in manufactured housing. I hear people at work talking about people who have double wides/land and they make fun. I will tell you something, this "double-wide" is beautiful inside and with a very nice open floor plan. It sure beats the house I just sold, which was a stick house in the city, and small and dusty as hell with abestos wrapping on pipes that was crumbling in attic and in crawl space, and rotting beams underneath the house. That was on the home inspection, but must not bothered the buyer as she didnt mention it.

Im out in the country now with no traffic and have no restrictions, and its much more peaceful and relaxing. much better listening to the frogs and crickets at night than listening to car doors slam and sirens and gunshots. lol.

[rmurray]

"I hear people at work talking about people who have double wides/land and they make fun."

Could it be they are envious of you living in a bigger..newer..nicer..home with lower payments????????????

I am glad to hear that the appraisal worked out fine...maybe your "professional" real estate lady has learned a lesson...Hope so..Good Luck with your home..