Like most real estate the Seller usually wants too much and the purchaser wants to pay too little with a mobile home park. Certain buyers may have different motivations for choosing 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 continues to operate because a mobile home park.
Anyone that has seen an appraisal on a house or most varieties of real estate may have heard mention within the 3 approaches to determining the associated with that real personal. They are the Cost, Sales, and Income Approach.
Unless you are coming up utilizing value of a brand name new mobile home park or an individual which is predominately vacant, I do avoid seeing any reason to use the cost approach. It is not likely the 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 cash 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 one other highly suspect. Individuals based on comparing the sale for this subject property along 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 are 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