Like most industry the Seller usually wants too much and the purchaser wants to pay too little with a mobile home school. Certain buyers may have different motivations for the purchase of a 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 continues to operate it as a mobile home park.
Anyone that has seen an appraisal on a house or most epidermis real estate may have heard mention on the 3 approaches to determining the value of that real property. They are the Cost, Sales, and Income Approach.
Unless you are coming up together with value of a brand new mobile home park or the one that is predominately vacant, I do avoid seeing any reason to utilize the cost come up on. It is not likely that this new mobile home park will be built nearby the actual it would cost to build brand-new park does not even take into account the amount of time, effort, and funds it takes to fill that park up with occupied and paying home-owners.
As far as the Sales or Market Comparison approach to value, this is also highly suspect. Famous . based on comparing the sale with the subject property along recent sales and adjusting for differences that you may or may not know about. Problems with this approach include varying expenses, rents, and management. Pc an investor or appraiser I would likely use this approach as potential information and not draw any conclusions as a result.
Lago Vista RV Park
2871 Hwy 72 W, Three Rivers, TX 78071
(361) 436-0845