How valuable is the NADA guide in determining the value of a used home? The pricing guide only asks for the age, state, general condition, width and length to determine the value. It then gives a low, average, and high retail price. Should one of those be my offer? I just saw a home where the dealer is asking almost twice the NADA value (and no, there's no "extras" included in his price). What about offering NADA to a bank for a repo? I saw a real estate investor's forum yesterday where a man said he always buys way below NADA value and sells way above.
Thanks,
Jim
How valuable is the NADA guide?
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rmurray
Re: How valuable is the NADA guide?
The NADA free web appraisal is useless....You can go to other parts of this site and get a more detailed appraisal...but even that is flawed because location adjustments, actual condition and repair costs can vary soooooo much..
The only real good appraisal is a NADA site appraisal done by a professionally trained manufactured home appraisor...This will involve an inspection of the home, adjustments for local market conditions and the like...These should cost about $ 200...
The best way to develope an offer is to look at other home available in the area..Then develope a fair offer...No easy free way to go..
The only real good appraisal is a NADA site appraisal done by a professionally trained manufactured home appraisor...This will involve an inspection of the home, adjustments for local market conditions and the like...These should cost about $ 200...
The best way to develope an offer is to look at other home available in the area..Then develope a fair offer...No easy free way to go..
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JohnnyJ
Re: How valuable is the NADA guide?
As rmurray says, it ain't easy. If you are not careful you could wind up comparing
apples to oranges. One home may look identical to the other until you look at
the construction. There are a lot of variables on used homes because you can't
tell by just doing a walk through yourself. You have to know the specs of each
home and compare similar to similar.
Make a list of what you are looking for, both construction and in eye candy. Use
this list every time you look at one. You will soon see the real difference.
good luck
apples to oranges. One home may look identical to the other until you look at
the construction. There are a lot of variables on used homes because you can't
tell by just doing a walk through yourself. You have to know the specs of each
home and compare similar to similar.
Make a list of what you are looking for, both construction and in eye candy. Use
this list every time you look at one. You will soon see the real difference.
good luck
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Jim
Re: How valuable is the NADA guide?
OK, point taken. But really doesn't it all go back to what we learned in Business 101? And that is that the real value of something is what someone else (the market) is willing to pay for it. Good old fashioned "supply and demand". Throw in the desperation of the finance companies. Throw in the fact that for the last 5 to 7 years, companies would finance anyone with a pulse, which has created a flood of repossessed homes on the market. (Supply high)
Besides, I just had my site built home appraised (which I am selling) and they didn't care about crown moulding, how far apart the joists were, how thick the drywall was, etc; and they certainly didn't care what other home owners were ASKING for their houses, they looked at square footage and general condition. But the greatest factor was the MARKET CONDITIONS. My site built is in a small "Mayberry-type" town. Not many people are moving in (Demand low). Homes the size of mine closer to the capitol of my state (just 25 miles west) are selling for 30% to 40% higher.
Tell me if I'm wrong, but right now I see (at least in my area) the supply very high and the demand very low. And THAT is what sets the price.
Besides, I just had my site built home appraised (which I am selling) and they didn't care about crown moulding, how far apart the joists were, how thick the drywall was, etc; and they certainly didn't care what other home owners were ASKING for their houses, they looked at square footage and general condition. But the greatest factor was the MARKET CONDITIONS. My site built is in a small "Mayberry-type" town. Not many people are moving in (Demand low). Homes the size of mine closer to the capitol of my state (just 25 miles west) are selling for 30% to 40% higher.
Tell me if I'm wrong, but right now I see (at least in my area) the supply very high and the demand very low. And THAT is what sets the price.
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David Oxhandler
Re: How valuable is the NADA guide?
Locate the appraiser nearest you who is Certified to make Appraisals of Manufactured Housing. The fastest way is to use the national data base search tool that you will find at
www.mfdhousing.com/lgc/valuators.php3
www.mfdhousing.com/lgc/valuators.php3
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JohnnyJ
Re: How valuable is the NADA guide?
Actually, you are not to far wrong. What sets the appraised value of a stick
built house is usually the sales price of comparables in the area. No, they don't
come in and ask what size ext. walls are in it, etc. It is a "stick built home,"
which would have been built to local code. HUD, which sets the values for
the manufactured home industry, has left a lot of latitude when it comes to
building the homes. As I said, don't compare apples to oranges here. They are
what they are. A 3 BR, 2 BTH stick built home with vinyl siding most likely won't
be as valuable as a 3 BR, 2 BTH stick built home with brick.
The basis of the home value should be decided by a state certified appraiser,
who should know what he is doing.
When appraising a manufactured home, the way it is constructed is going to
figure in on the value. Also the placement of the home on rental property or
a permanent foundation with land. There are just a whole lot of variables to
be considered. Even the NADA guide for cars can't give a correct value. Some
people take better care of their cars, getting the proper maintenance, others
don't. NADA is a basic guideline, not a measuring stick.
built house is usually the sales price of comparables in the area. No, they don't
come in and ask what size ext. walls are in it, etc. It is a "stick built home,"
which would have been built to local code. HUD, which sets the values for
the manufactured home industry, has left a lot of latitude when it comes to
building the homes. As I said, don't compare apples to oranges here. They are
what they are. A 3 BR, 2 BTH stick built home with vinyl siding most likely won't
be as valuable as a 3 BR, 2 BTH stick built home with brick.
The basis of the home value should be decided by a state certified appraiser,
who should know what he is doing.
When appraising a manufactured home, the way it is constructed is going to
figure in on the value. Also the placement of the home on rental property or
a permanent foundation with land. There are just a whole lot of variables to
be considered. Even the NADA guide for cars can't give a correct value. Some
people take better care of their cars, getting the proper maintenance, others
don't. NADA is a basic guideline, not a measuring stick.
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