Since the beginning of the Duty to Serve, Freddie Mac and Fannie Mae have been reporting strong growth in the purchase of loans on manufactured homes titled as real property and recognized as real estate. As they continue to buy more loans, the role of the residential real estate appraiser and their ability to support the value of new manufactured homes becomes critical to the growth of conventional lending and the popularity of manufactured homes to future homebuyers.
To understand the challenges and opportunities appraising manufactured housing for conventional financing, we invited Freddie Mac’s Chief Appraiser and Director of Valuation, Scott Reuter, and Bingham Appraisals’ Chief Appraiser and creator of the Appraisal Institute’s training on manufactured housing, Scott Hartman, SRA, to be our guests for the first webinar in 2022.
Here are a few highlights, and we invite you to view the webinar replay for the many other valuable insights shared by these subject matter experts.
- The residential real estate appraisal industry is facing tremendous demand with limited resources with more appraisers holding off on more complex appraisals to manage the growth in volume. By making it easier for appraisers to determine the value of new manufactured homes, we are helping them be successful.
- Most appraisers may mistake the next generation of manufactured homes as site-built homes when higher-pitched roofing, garages, porches, and other amenities are included in the final completion. Appraisal training introduces a useful methodology of comparing quality and condition, simplifying the process.
- New manufactured homes can be compared to site-built homes to derive and support the value of the property. Conversely, new manufactured homes can be used to support the value of a site-built home. Appraisal training underscores what Freddie Mac and Fannie Mae consider acceptable creating more confidence in the selection of comparable properties.
- Appraisal training on manufactured housing is not limited to the appraisal industry, retailers, lenders, manufacturers, and others would benefit in understanding the process of valuing today’s manufactured homes. This creates a collaborative relationship that benefits all parties involved.
- Providing the appraiser with the detailed plans, specifications, home elevation, and any information that will help determine the value is critical in helping the appraiser determine the value. However, it is the appraiser who is responsible for determining the final value.
There is a great opportunity for our industry to support the residential real estate appraiser which enables the growth and adoption of the next generation of manufactured homes. As Freddie Mac and Fannie Mae focus on buying more conventional loans on manufactured homes as real estate, more lenders will participate in financing them which requires more real estate appraisers to accurately value them. As more consumers realize the value, quality, and efficiency of the next generation of manufactured homes, the demand will continue to increase, which is what we’ve been waiting for all along. Our ability to collaborate with other industries, like the residential real estate appraisers, is the key to our success.
Mark your calendars for February 16th at 11 AM PT/2 PM ET as we continue our theme of Manufacturing Success in 2022, with a focus on developing with manufactured housing. In addition to the growth of consumers buying manufactured homes as real estate, there is a growing interest in real estate developers creating new subdivisions using today’s modern manufactured homes instead of traditional site-built construction. Registration is required, so reserve your place now.