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Fair Oaks

When there’s no other manufactured homes in the neighborhood

October 23, 2018 By Ryan Lundquist 19 Comments

What do you do if you’re trying to value a manufactured home and there aren’t any comps in the market? I’ve been asked this a few times lately, so I wanted to pitch in some thoughts.

PUZZLE APPROACH: There isn’t one easy way to approach this, so when appraising something challenging I tend to look at a property like a puzzle where my goal is to find clues into value by considering a number of factors.

THINGS TO CONSIDER:

1) Older sales: There might not be any recent sales over the past 3-6 months, but what about older sales? There’s nothing wrong with looking at sales over the past few years and then figuring out how much the market has changed since those properties sold. This is exactly what I did when appraising a manufactured home in Carmichael recently. There were no recent sales and the most relevent one I could find was from 2016. I used that sale and simply adjusted for the market increasing in value over time.

2) Competitive markets: If sales are sparse in the neighborhood or city, why not look to competitive markets? When appraising in Carmichael I looked to Fair Oaks, Orangevale, and Citrus Heights. Of course I didn’t blindly choose sales. No, I had to be thoughtful about comp selection by making sure the other areas really were selling at a similar level. After all, there are portions of the other locations that could easily sell for more or less than portions of Carmichael.

Beyond one mile? Remember, it’s okay to use “comps” outside of a one-mile radius, but it’s suspect to cherry-pick higher sales further away when there are better (and lower) ones nearby. Here’s a good saying. It’s not how far you can go for comps, but where you should go.

3) If it was stick built: In my experience manufactured homes usually sell for less than stick-built homes. Duh, thanks Captain Obvious. But for the sake of being objective I’m leery about saying stuff like, “It’s going to sell for less than a stick-built home every time”. Anyway, my point is I can ask what the subject might sell for if it was a stick-built home in the neighborhood. Then at least I have a figure in mind as to what the highest possible price might be for the subject.

4) Subject sale: Has the subject sold in the past? If it was a reasonable sale at the time, it might give clues into value. What other locations were competitive at the time? Did it seem to sell toward the higher or lower end of the competitive market? Did it sell for more or less than other stick built homes?

5) Manufactured vs stick built: What’s the price difference between manufactured and stick built homes? That’s a good question. It’s not easy to answer if we don’t have sales in the market, so this is where we might look to a nearby market with more manufactured homes (not ones found in mobile home parks). When comparing manufactured vs stick-built homes, what sort of percentage price difference do we see? I’m not saying we should just take a percentage like this and apply it to stick-built “comps” in the subject neighborhood, but there could be some data here we might end up using. Remember, this is a piece of the puzzle or clue into value rather than the entire solution to value.

6) Ask for advice on finding sales in MLS: One of the challenges with manufactured homes is knowing how to find them in MLS. I suggest starting a map search as I show below. You might also do a single family home search and type in “manufactured” in the property description to see if anything comes up. Ultimately it might be worth it to ask a few colleagues how they find stuff in MLS.

7) Bottom & Top: Sometimes when dealing with a challenging property we have to ask ourselves where the top and bottom of the price market is in the neighborhood. At the least this gives us some context for where the value of the subject property might fit. In Carmichael I looked to the market and saw the lowest sales were closer to $300,000 and the highest competitive sales were just above $400,000. I realize this is a huge range, but at the least this gives me something to work with. Also, if my value is coming in below the bottom of a reasonable range, that’s a prod for me to keep digging for better comps and data (unless there’s a reason why the value should be lower).

8) Land value: Let’s not forget about land value. It’s worth asking what the site would sell for if it was vacant. This isn’t the main approach to value, but it’s a piece of the puzzle. The problem is if I’m relying heavily on one manufactured home comp in the market, but land value alone is more than that comp sold for, then maybe that one “comp” sold for too little.

CLOSING THOUGHTS: It really is like a puzzle when valuing something without the benefit of recent similar sales. My advice? Try to piece together many details like the ones above to help collectively paint a picture of value.

I hope that was helpful.

Photo credit: Thank you Realtor Sandy Muzinich for letting me use photos.

NEW VIDEO MARKET UPDATE: A couple of days ago I made a video to talk through the latest stats. It’s 10+ minutes and I talk through prices, inventory and sales volume. Enjoy if you wish.

Questions: What point stands out to you the most? Anything else to add? I’d love to hear your take.

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Filed Under: Appraisal Stuff, Resources Tagged With: bottom of the market, Carmichael, choosing comps, comp selection, Fair Oaks, Greater Sacramento appraisal blog, how appraisers choose comps, Manufactured Home, MLS, no comps, Orangevale, questions to ask, stick-built home, top of the market

Is it okay to use comps from a different city?

October 5, 2017 By Ryan Lundquist 14 Comments

Can you use comps from a different city? Most of the time that’s a bad idea, but sometimes it’s the best option. Let talk about this a bit as I share an example of why I did this recently in an appraisal. The discussion below really has to do with school district boundaries too. Anything to add? I’d love to hear your take.

The situation: I appraised a duplex (two attached units) in the city of Citrus Heights in an area that was just a few streets away from Fair Oaks. As locals know, Fair Oaks tends to sell at higher levels compared to Citrus Heights, so pulling “comps” from Fair Oaks could quickly inflate value if I’m not careful. But this portion of Citrus Heights is located in Bella Vista High School territory, which is a top-rated school. The school boundaries include the eastern portion of Fair Oaks, Orangevale, and a small portion of Citrus Heights where the subject property is located. Does this matter for value? Is it going to be okay to use comps from a different zip code or city? Let’s take a look.

Here are all duplex sales in Citrus Heights over the past 10 years:

Now let’s compare duplex sales in Citrus Heights with duplex sales in Bella Vista High School territory to see if there might be a price difference. As you can see, Bella Vista has a much higher school rating on GreatSchools.org compared to surrounding schools. 

How to find school boundaries: I found the boundaries for Bella Vista on GreatSchools.org. When you pull up a school profile on this website all you have to do is click “nearby schools” located on the right side of the page to bring up exact boundaries and a comparison of ratings. Otherwise the school district might have a map.

After finding school boundaries I drew them in MLS to look at specific data. Being that there are portions of three zip codes in this area, a zip code search would not have worked. A one-mile radius definitely wouldn’t have worked either.

It’s pretty clear duplex sales in Bella Vista territory are selling toward the higher end of the market. They don’t always sell for more compared to everything in Citrus Heights, but obviously they’re selling toward the top.

The big question: Do Citrus Heights duplexes within Bella Vista boundaries sell for more?

In short, it looks like Bella Vista High School boundaries matter for value for Citrus Heights duplexes. These sales tend to compete toward the top of the Citrus Heights duplex market. Not only that, they also compete toward the top of the Bella Vista market which includes portions of Fair Oaks and Orangevale.

Three Takeaways:

1) Using comps from different cities: It’s fine to use comps from different cities and zip codes, but we have to be sure we are really looking at the same market. If we’re just “cherry-picking” higher sales from around the corner in a different city, that’s no good. Appraisers get handed so-called “comps” all the time that are from areas that clearly command higher prices. I’m definitely not advocating for that here. What I am saying is if we study the market and it’s reasonable to use sales from a different city or zip code because they’re competitive, that’s fine. Remember, it’s never about how far an appraiser can go, but where an appraiser should go for comps. Sometimes we are bound tightly in our comp search by just one or two streets, but other times (like above) we might end up using sales from other zip codes and cities. In this case after my research I ended up using comps from Fair Oaks for a Citrus Heights duplex because they were similar in price and they fed into the same highly-rated high school.

2) School boundaries: Sometimes school boundaries can be a big deal for value, though other times not so much. In most areas there is really just one school that serves a neighborhood, but when different cities and zip codes collide it might be a good idea to consider if there is any value impact with the boundaries. Sometimes we might even have to step back and maybe search for comps by school district, which will mean we might end up with comps from different cities.

3) Different trends: Just because I used Fair Oaks sales for a Citrus Heights duplex does not mean I would do the same for single family homes or vacant land. The market might not be the same for every property type. 

I hope this was helpful or interesting.

Questions: When have you used comps from a different city? When would you NOT use comps from a different city or zip code? Anything to add?

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Filed Under: Appraisal Stuff Tagged With: Bella Vista High School, choosing comps like an appraiser, Citrus Heights, comp methodology, Fair Oaks, finding school boundaries, great schools, how to choose comparable sales, Orangevale, school distrct and value

Micah’s marvelous flipped modern craftsman

December 20, 2012 By Ryan Lundquist 2 Comments

My friend Micah flipped an incredible modern craftsman style house recently. This home is simply stunning (now) and worthy of many Pinterest shares. It may have been designed by Carter Sparks, but I’m not entirely sure (it is on a Carter Sparks website). Whatever the case, I put together a brief “before and after” video for your enjoyment. Thank you Micah Baginski for letting me do this, and thank you also to Realtor Anne Graviet for letting me use some “before” images she had on file. Enjoy the video below (or click here).

Any thoughts? How much do you think it sold for? (located in Fair Oaks)

NOTE: I just purchased a new computer and I’m having issues with my video software. This is why a few images are pixelated and why the quality is lower.

If you have any questions or Sacramento home appraisal or property tax appeal needs, let’s connect by phone 916-595-3735, email, Twitter, subscribe to posts by email (or RSS) or “like” my page on Facebook

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Filed Under: Videos Tagged With: Anne Graviet, before and after video, Carter Sparks, Fair Oaks, Flip that house, flipped modern house, Home Appraiser, House Appraiser, MCM, Micah Baginski, modern architecture

Riding my bike to work in the month of May

May 4, 2012 By Ryan Lundquist 4 Comments

may is bike month logoIt’s bike month in the Sacramento area and I’m excited to get to ride to an appraisal inspection today for a total of 20 miles. Since the property is fairly close to the Sacramento River anyway, I’ll get to enjoy some of the trails in Rancho Cordova and then exit Hazel Avenue into Fair Oaks. This year I’ve pledged to ride 100 miles during May, which should be fun, but I’m even more excited that my boys are doing it with me. My 8-year-old will be riding 33 miles and my 6-year-old will be riding 16 miles.

Speaking of bikes, I’m also riding in the Project 680 Underwear Ride on May 19 to help raise awareness for student homelessness and gather new underwear for homeless students. This will be a 26-mile ride (roundtrip). Project 680 is close to my heart and a cause I pour my heart and time into. Would anyone like to ride with me? I hear Keith Klassen is coming.

Have you pledged to ride for bike month?

If you have any questions or Sacramento area real estate appraisal or property tax appeal needs, contact me by phone 916-595-3735, email, Twitter, subscribe to posts by email or “like” my page on Facebook

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Filed Under: Random Stuff Tagged With: appraisal inspection, appraiser in Sacramento, Bike Month in Sacramento, Fair Oaks, May is Bike Month, Project 680 Underwear Ride, Rancho Cordova, riding bike to work, River trails, Ryan Lundquist

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First off, thank you for being here. Now let's get into the fine print. The material and information contained on this website is the copyrighted property of Ryan Lundquist and Lundquist Appraisal Company. Content on this website may not be reproduced or republished without prior written permission from Ryan Lundquist.

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The information on this website is meant entirely for educational purposes and is not intended in any way to support an opinion of value for your appraisal needs or any sort of value conclusion for a loan, litigation, tax appeal or any other potential real estate or non-real estate purpose. The material found on this website is meant for casual reading only and is not intended for use in a court of law or any other legal use. Ryan will not appear in court in any capacity based on any information posted here. For more detailed market analysis to be used for an appraisal report or any appraisal-related purpose or valuation consulting, please contact Ryan at 916-595-3735 for more information.

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