Steps Involved in Mobile Home Appraisals
Despite conforming to the HUD Code of safety and quality, the per square foot cost of manufactured homes is generally 10 to 35 percent less than the per square foot cost of conventional homes. Hence, appraisal of manufactured homes has assumed a great deal of importance in the face of increasing popularity of these homes. At the least, the appraiser is expected to perform the following tasks:
Visually inspect the surroundings and the property under consideration
Determine the approach to be used for real estate appraisal .
Assuming that comparable sales approach is used, the appraiser should collect comparable sales figures for recently sold neighborhood properties. Check the accuracy of the collected data by comparing the figures against the numbers mentioned in the public records
Choosing the Appropriate Method of Home Appraisal
An appraisal is an unbiased estimate of the value of the property under consideration using the standard and approved methods. The licensing requirements, for appraisers, vary from state to state. While appraising a property, the absorption rate for a neighborhood is particularly important. Absorption rate is defined as the length of time required to sell off the entire inventory of houses in a given neighborhood. A duration of 6 months or more is indicative of an oversupply of houses in the neighborhood and will consequently lower the price of the property being appraised.
Comparable Sales Approach: Comparable sales approach takes into account the price of recently sold comparable properties. A comparable property is a similar property that is located in the same neighborhood. Comparable properties are also referred to as bench marked properties. The price of the property, that is being appraised, is equal to the approximate average of the prices of the aforementioned bench marked properties. Since no two properties are alike, the appraiser is expected to make the requisite adjustments in order to arrive at the fair market value of the appraised property.
Cost Approach: This approach is suitable for manufactured home owners who own the land in addition to the house. In this case, the cost of the land is estimated using the comparable sales approach or some other suitable approach. The manufactured home is known as an improvement made on the land. From the cost of the improvements made on the land, the cost of depreciation of the manufactured home is subtracted and the resultant is added to the cost of the land. http://rhnws.com.au/
Despite conforming to the HUD Code of safety and quality, the per square foot cost of manufactured homes is generally 10 to 35 percent less than the per square foot cost of conventional homes. Hence, appraisal of manufactured homes has assumed a great deal of importance in the face of increasing popularity of these homes. At the least, the appraiser is expected to perform the following tasks:
Visually inspect the surroundings and the property under consideration
Determine the approach to be used for real estate appraisal .
Assuming that comparable sales approach is used, the appraiser should collect comparable sales figures for recently sold neighborhood properties. Check the accuracy of the collected data by comparing the figures against the numbers mentioned in the public records
An appraisal is an unbiased estimate of the value of the property under consideration using the standard and approved methods. The licensing requirements, for appraisers, vary from state to state. While appraising a property, the absorption rate for a neighborhood is particularly important. Absorption rate is defined as the length of time required to sell off the entire inventory of houses in a given neighborhood. A duration of 6 months or more is indicative of an oversupply of houses in the neighborhood and will consequently lower the price of the property being appraised.
Comparable Sales Approach: Comparable sales approach takes into account the price of recently sold comparable properties. A comparable property is a similar property that is located in the same neighborhood. Comparable properties are also referred to as bench marked properties. The price of the property, that is being appraised, is equal to the approximate average of the prices of the aforementioned bench marked properties. Since no two properties are alike, the appraiser is expected to make the requisite adjustments in order to arrive at the fair market value of the appraised property.
Nice tips. Thank you for sharing. People selling their property must know these tips when appraisal process is going on.
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