Like most real estate the Seller usually wants too much and the purchaser wants to pay too little for any mobile home softball park. Certain buyers may have different motivations for purchasing a certain park (1031 money, ability to 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 will continue to operate it as a mobile home park.
Anyone that has seen an appraisal on a house or most associated with real estate can have heard mention among the 3 approaches to determining the value of that real estate. They are the Cost, Sales, and Income Approach.
Unless you are coming up together with value of a brand new mobile home park or the one that is predominately vacant, I do not see any reason to utilize the cost approach. It is not likely that this new mobile home park will be built nearby exactly what it would cost to build the brand new 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 home owners.
As far given that the Sales or Market Comparison approach to value, this furthermore highly suspect. Famous . based on comparing the sale of this subject property 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. Pc 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