Tips on how to Value a Mobile Home Park
Like most industry the Seller usually wants too much and the purchaser wants to pay too little to get mobile home playground. Certain buyers may have different motivations for purchasing certain park (1031 money, ability obtain better financing, conversions to other uses, and location to where they live). In this book we will only look only in the value of a mobile home park for the typical buyer who continue to operate because a mobile home park.
Anyone that has seen an appraisal on a house or most varieties of real estate may have heard mention within the 3 approaches to determining the value of that real personal. They are the Cost, Sales, and Income Reach.
Unless you are coming up utilizing value of a brand name new mobile home park or 1 which is predominately vacant, I do not see any reason to use the cost concept. It is not likely how the new mobile home park will be built nearby the it would cost to build an alternative park does genuinely take into account the amount of time, effort, and money it takes to fill that park up with occupied and paying passengers.
As far because your Sales or Market Comparison approach to value, this one other highly suspect. Need to based on comparing the sale with the subject property to additional recent sales and adjusting for differences that you may or may not know exactly about. Problems with this approach include varying expenses, rents, and management. An ideal an investor or appraiser I definitely use this approach as potential information and not draw any conclusions from it.
Lago Vista RV Park
2871 Hwy 72 W, Three Rivers, TX 78071
(361) 436-0845
