Like most property the Seller usually wants too much and the purchaser wants to pay too little for every mobile home park. Certain buyers may have different motivations for purchasing certain park (1031 money, ability attain 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 involving real estate could have heard mention of the 3 approaches to determining the value of that real personal. They are the Cost, Sales, and Income Reach.
Unless you are coming up with the value of a brandname new mobile home park or one that is predominately vacant, I do avoid seeing any reason get a the cost concept. It is not likely the new mobile home park will be built nearby the actual it would cost to build an alternative park does actually take into account the amount of time, effort, and cash it takes to fill that park up with occupied and paying residents.
As far when your Sales or Market Comparison approach to value, this likewise highly suspect. Need to based on comparing the sale of this subject property to additional recent sales and adjusting for differences that you might or might not know about. Problems with this approach include varying expenses, rents, and management. Whether you’re an investor or appraiser I would just 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