The National Automobile Dealers Association determines mobile home values based on depreciated replacement cost in retail dollars, according to its website. NADA determines what it would take to replace the home, adjusting for any appreciation or depreciation, plus the replacement cost for fixtures and features of the mobile home.
On the NADA website, users can use the frequently asked questions section to answer questions on the methodology of how NADA determines value. Additionally, the NADA Mobile, Modular and Manufactured Home Value Reports page gives users an option to see a sample report that shows all of the different components in determining value. The NADA uses depreciated replacement cost in retail dollars to determine value.
The base structure is the biggest component of value, but the dollar cost also depends on the location of the mobile home, explains NADA. The condition of the mobile home has an impact on value as well. For homes in excellent condition, NADA assigns a dollar value premium based on the year, make and model. Conversely, a home in substandard condition could see a discount in value. Lastly, the NADA assigns values to the fixtures and features of the mobile home based on replacement value. Adding all of these components together yields the NADA determination of value. It is important to note that the NADA value is not a determination of selling price, and the actual selling price could be higher or lower.