NADA values verses reality

[David]

I am a real estate appraiser. The NADA book offers retail values which seem to be considerably lower than what Joe Public will have to pay for the M/H on the retail lot. I have included all options and called NADA - they say that the problem I am having is that the dealers are selling at an inflated price. I was just asked to do an appraisal on a Fleetwood 2003 Oaknoll series 4483B - after adding options I came up with $30,000 according to NADA - but, the dealer wants $49,000? NADA includes all local set-up charges and they were quite adamit about there cost figures. What am I missing?

David

[rmurray]

NADA is very national in its figures..Right now some figures are quite different in each location..
Have you made location adjustments (required for an acurate NADA appraisal)...both for the state...and the location..If this home is in a park the amount could easily be much higher with adjustments..
Have you included every feature in the house...a/c, steps, skirting,fireplace, type of appliances, doors windows if upgraded..siding and roof if upgraded.on and on..Features can add many thousands to an accurate appraisal..
...If you have done all of the above and if this is a used home (only thing NADA deals in)..the dealer will have to look for better finance...

[David]

I do not have a lot of experience using the NADA guide. I have read through the guide and find it readily understandable; I was trying to price a 2003 Fleetwood Oak Knoll - new; I found the cost differences to be so far from any legitimate attempt by the industry to make a "cost comodity" level playing field.

It is to the industry's long-term detriment. You can go on the web and get a good idea of what a Toyota Tundra will cost along with its options. The mobile home industry uses "a smoked filled room" certified valuators - its a joke and a sham.

[David]

The industry needs price standardization and a reliable "MSRP" - and then a pricing of options that do not "pad" bottom line profits quite as aggressively. Accurate Replacement Cost is paramount to measure investor perforamance (you know the people that supply the finanacing) - they actually expect a return on thier investment.

What I see is small retail lots dotted all over the landscape dictating "new" replacement cost to the appraiser and not the other way around - thats where its gone awry. Then the appraiser has to go out in the market and find "resales" that do not come anywhere near the price new.

A comodity in mass production requires accurate published retail pricing. You market data in the field appraisal to support an "artificial" retail price - any legitimate analysis is lost. About 10% of the sales in Bradford County Florida sell for much more than the rest of the units. 10/90 relationship speaks of a system gone wrong. FNMA has further polluted the pot with the gize that somehow this is a real estate investment - it is not - not until pricing overhauled.

David Stevenson

[rmurray]

You are doing this all wrong...If this is for a real estate appraisal...the appraisers use Kelly's 2003 Cost Manual for most of the acceptable appraisals here in the SE..

If this is for a home only loan...no appraisor is needed..

NADA is used homes only...

[David]

This is the first time I have ever heard of such a manual. I looked on yahoo and can find no listing for it. Do you know where I can get on?