Housing and Community Development (HCD) Practice Exam

When determining the value of a used manufactured home, what factor must be disclosed?

1. The original purchase price

2. Any structural modifications made

3. Facts materially affecting value or desirability

4. The previous owner's financial situation

The correct answer is: Facts materially affecting value or desirability

Disclosing facts that materially affect the value or desirability of a used manufactured home is crucial in ensuring transparency in the assessment process. This includes any conditions or situations that can influence a potential buyer’s perception, such as the home's condition, its location, market trends, or any legal issues affecting the property. Providing such information supports informed decision-making for buyers, allowing them to evaluate the home's true worth and address any concerns that might impact their investment. In contrast, while the original purchase price might provide some context, it does not impact the current value directly. Structural modifications are relevant but may not encompass the broader range of factors influencing value, such as market conditions or neighborhood developments. Lastly, disclosure of a previous owner's financial situation is generally unrelated to the home's inherent value or desirability, making it less relevant to potential buyers evaluating the property.