Like most property the Seller usually wants too much and the purchaser wants to pay too little for every mobile home softball park. Certain buyers may have different motivations for the purchase of 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 in the value of a mobile home park for the typical buyer who will continue to operate it as a mobile home park.
Anyone that has seen an appraisal on a house or most epidermis real estate may have heard mention of 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 1 which 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 the actual it would cost to build a new park does actually take into account the amount of time, effort, and money it takes to fill that park up with occupied and paying citizens.
As far because your Sales or Market Comparison approach to value, this is also highly suspect. Need to based on comparing the sale on the subject property to additional 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 you’re an investor or appraiser I would just 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