Like most real estate 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 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 continues to operate it as a mobile home park.

Anyone that has seen an appraisal on a house or most types of real estate can have heard mention from the 3 approaches to determining the value of that real holdings. They are the Cost, Sales, and Income Approach.

Unless you are coming up utilizing value of a brand new mobile home park or one that is predominately vacant, I do avoid seeing any reason also included with the cost tackle. It is not likely if you have a new mobile home park will be built nearby the actual it would cost to build the most current park does truly 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 as the Sales or Market Comparison approach to value, this one other highly suspect. This is based on comparing the sale of the subject property with the other recent sales and adjusting for differences that you may or may not know about. Problems with this approach include varying expenses, rents, and management. Whether or not you’re an investor or appraiser I would likely 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

https://goo.gl/maps/hAfj89yvsshumVqR9

Posted on:
July 11, 2019