Like most industry the Seller usually wants too much and the purchaser wants to pay too little for every mobile home playground. 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 at 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 involving real estate may have heard mention within the 3 approaches to determining the associated with that real est. They are the Cost, Sales, and Income Approach.
Unless you are coming up utilizing value of a brand name new mobile home park or the one that is predominately vacant, I do not see any reason to utilize the cost come up on. It is not likely if you have a new mobile home park will be built nearby the it would cost to build the brand new park does actually take into account the amount of time, effort, and money it takes to fill that park up with occupied and paying home owners.
As far given that Sales or Market Comparison approach to value, this likewise highly suspect. Is actually a based on comparing the sale of this subject property along recent sales and adjusting for differences that you might not know pertaining to. Problems with this approach include varying expenses, rents, and management. Whether you’re an investor or appraiser I would certainly 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