Tips on how to Value a Mobile Home Park

Like most industry the Seller usually wants too much and the purchaser wants to pay too little to get mobile home park. Certain buyers may have different motivations for purchasing 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 at the value of a mobile home park for the typical buyer who continues to operate it as a mobile home park.

Anyone that has seen an appraisal on a house or most involving real estate will have heard mention from the 3 approaches to determining the associated with that real property. They are the Cost, Sales, and Income Get near.

Unless you are coming up together with value of a brand name new mobile home park or a single is predominately vacant, I do not see any reason to utilize the cost approach. It is not likely that a new mobile home park will be built nearby and what it would cost to build the most current park does not just take into account the amount of time, effort, and funds it takes to fill that park up with occupied and paying residents.

As far as the Sales or Market Comparison approach to value, this one other highly suspect. Individuals based on comparing the sale with the subject property with the other 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. An ideal 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

https://goo.gl/maps/hAfj89yvsshumVqR9