Like most marketplace the Seller usually wants too much and the purchaser wants to pay too little to get mobile home playground. Certain buyers may have different motivations for buying a certain park (1031 money, ability to acquire 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 associated with real estate may have heard mention of the 3 approaches to determining the associated with that real estate. They are the Cost, Sales, and Income Reach.
Unless you are coming up without the pain . value of a product new mobile home park or 1 which is predominately vacant, I do avoid seeing any reason to utilize the cost method. It is not likely that a new mobile home park will be built nearby the actual it would cost to build brand-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 home owners.
As far as the Sales or Market Comparison approach to value, this one other highly suspect. Is actually a based on comparing the sale with the subject property to additional recent sales and adjusting for differences that you might or might not know with reference to. Problems with this approach include varying expenses, rents, and management. An ideal an investor or appraiser I would certainly use this approach as potential information and not draw any conclusions from that.
Lago Vista RV Park
2871 Hwy 72 W, Three Rivers, TX 78071
(361) 436-0845