Ways to Value a Mobile Home Park
Like most industry the Seller usually wants too much and the purchaser wants to pay too little for any mobile home school. Certain buyers may have different motivations for purchasing a certain park (1031 money, ability receive 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 will continue to operate because a mobile home park.
Anyone that has seen an appraisal on a house or most types of real estate could have heard mention of the 3 approaches to determining the value of that real property. They are the Cost, Sales, and Income Reach.
Unless you are coming up utilizing value of a brand name new mobile home park or a single is predominately vacant, I do avoid seeing any reason get a the cost approach. It is not likely that this new mobile home park will be built nearby exactly what it would cost to build an alternative park does truly take into account the amount of time, effort, and money it takes to fill that park up with occupied and paying residents.
As far given that Sales or Market Comparison approach to value, this furthermore highly suspect. Famous . based on comparing the sale of this subject property with the other recent sales and adjusting for differences that you might not know exactly about. Problems with this approach include varying expenses, rents, and management. Pc an investor or appraiser I would certainly 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
