How you can Value a Mobile Home Park
Like most marketplace the Seller usually wants too much and the purchaser wants to pay too little to get mobile home softball park. Certain buyers may have different motivations for the purchase of a certain park (1031 money, ability to 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 it as a mobile home park.
Anyone that has seen an appraisal on a house or most varieties of real estate can have heard mention on the 3 approaches to determining the associated with that real personal. They are the Cost, Sales, and Income Approach.
Unless you are coming up utilizing value of a product new mobile home park or one that is predominately vacant, I do avoid seeing any reason to use the cost come up on. It is not likely how the new mobile home park will be built nearby and what it would cost to build the brand new park does genuinely take into account the amount of time, effort, and cash it takes to fill that park up with occupied and paying residents.
As far as the Sales or Market Comparison approach to value, this likewise highly suspect. This is based on comparing the sale with the subject property along recent sales and adjusting for differences that you might or might not know exactly about. Problems with this approach include varying expenses, rents, and management. An ideal an investor or appraiser I would just use this approach as potential information and not draw any conclusions out of it.
Lago Vista RV Park
2871 Hwy 72 W, Three Rivers, TX 78071
(361) 436-0845
