The best way to Value a Mobile Home Park
Like most marketplace the Seller usually wants too much and the purchaser wants to pay too little to get mobile home park. 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 continue to operate because a mobile home park.
Anyone that has seen an appraisal on a house or most associated with real estate could have heard mention among the 3 approaches to determining the value of that real property. They are the Cost, Sales, and Income Get near.
Unless you are coming up without the pain . value of a brand name new mobile home park or 1 which is predominately vacant, I do avoid seeing any reason to use the cost come up on. It is not likely that this new mobile home park will be built nearby and what it would cost to build brand-new 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 given that Sales or Market Comparison approach to value, this is also highly suspect. Famous . based on comparing the sale of this subject property with the other recent sales and adjusting for differences that you might or might not know with regard to. Problems with this approach include varying expenses, rents, and management. An ideal 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
