Like most marketplace the Seller usually wants too much and the purchaser wants to pay too little with a mobile home zoo. Certain buyers may have different motivations for purchasing a 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 will continue to operate it as a mobile home park.
Anyone that has seen an appraisal on a house or most varieties of real estate will have heard mention among the 3 approaches to determining the associated with that real estate. They are the Cost, Sales, and Income System.
Unless you are coming up without the pain . value of a brand new mobile home park or the one that is predominately vacant, I do avoid seeing any reason also included with the cost concept. It is not likely that this new mobile home park will be built nearby exactly what it would cost to build the most current park does not just take into account the amount of time, effort, and cash it takes to fill that park up with occupied and paying citizens.
As far because your Sales or Market Comparison approach to value, this likewise highly suspect. Is actually a based on comparing the sale of the subject property to additional recent sales and adjusting for differences that you might not know exactly about. Problems with this approach include varying expenses, rents, and management. Whether you are an investor or appraiser I would just use this approach as potential information and not draw any conclusions out of it.
Lago Vista RV Park
2871 Hwy 72 W, Three Rivers, TX 78071
(361) 436-0845