Tips on how to Value a Mobile Home Park
Like most real estate the Seller usually wants too much and the purchaser wants to pay too little for every mobile home zoo. Certain buyers may have different motivations for purchasing 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 continues to operate because a mobile home park.
Anyone that has seen an appraisal on a house or most epidermis real estate may have heard mention within the 3 approaches to determining the value of that real est. They are the Cost, Sales, and Income Reach.
Unless you are coming up with the value of a brandname new mobile home park or 1 which is predominately vacant, I do not see any reason get a the cost tackle. It is not likely if you have a new mobile home park will be built nearby exactly what it would cost to build brand-new park does actually take into account the amount of time, effort, and funds 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. Need to based on comparing the sale of the subject property with other recent sales and adjusting for differences that you may or may not know with regard to. Problems with this approach include varying expenses, rents, and management. Whether or not you’re an investor or appraiser I would certainly use this approach as potential information and not draw any conclusions from it.
Lago Vista RV Park
2871 Hwy 72 W, Three Rivers, TX 78071
(361) 436-0845
