Like most industry the Seller usually wants too much and the purchaser wants to pay too little for any mobile home playground. Certain buyers may have different motivations for choosing 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 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 involving real estate may have heard mention among the 3 approaches to determining the associated with that real holdings. They are the Cost, Sales, and Income Decide on.
Unless you are coming up with the value of a brand name new mobile home park or an individual which is predominately vacant, I do avoid seeing any reason also included with the cost come up on. It is not likely if you have a new mobile home park will be built nearby exactly what it would cost to build a new park does actually take into account the amount of time, effort, and cash it takes to fill that park up with occupied and paying citizens.
As far as the Sales or Market Comparison approach to value, this furthermore highly suspect. This is based on comparing the sale of the subject property to additional recent sales and adjusting for differences that you may or may not know exactly about. Problems with this approach include varying expenses, rents, and management. Pc an investor or appraiser I would likely use this approach as potential information and not draw any conclusions as a result !.
Lago Vista RV Park
2871 Hwy 72 W, Three Rivers, TX 78071
(361) 436-0845