Like most real estate the Seller usually wants too much and the purchaser wants to pay too little for a mobile home park. Certain buyers may have different motivations for buying 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 it as 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 value of that real estate. They are the Cost, Sales, and Income Reach.
Unless you are coming up together with value of a product new mobile home park or a single is predominately vacant, I do not see any reason also included with the cost method. It is not likely that this new mobile home park will be built nearby exactly what it would cost to build a new park does not just 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 furthermore highly suspect. Is actually a based on comparing the sale of the subject property together with other recent sales and adjusting for differences that you might or might 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 out of it.
Lago Vista RV Park
2871 Hwy 72 W, Three Rivers, TX 78071
(361) 436-0845