Like most industry the Seller usually wants too much and the purchaser wants to pay too little for every mobile home playground. Certain buyers may have different motivations for purchasing a certain park (1031 money, ability attain 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 types of real estate could have heard mention among the 3 approaches to determining the associated with that real holdings. They are the Cost, Sales, and Income Approach.
Unless you are coming up together with value of a brandname new mobile home park or one that is predominately vacant, I do not see any reason get a the cost method. It is not likely that a new mobile home park will be built nearby the it would cost to build a new park does truly 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 furthermore highly suspect. Individuals based on comparing the sale for this subject property to additional recent sales and adjusting for differences that you may or may not know with reference to. Problems with this approach include varying expenses, rents, and management. Whether you’re an investor or appraiser I definitely 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