Like most marketplace 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 purchasing 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 at the value of a mobile home park for the typical buyer who continues to operate because a mobile home park.

Anyone that has seen an appraisal on a house or most varieties of real estate will have heard mention within the 3 approaches to determining the value of that real estate. They are the Cost, Sales, and Income Decide on.

Unless you are coming up together with value of a brand new mobile home park or one that is predominately vacant, I do avoid seeing any reason also included with the cost come up on. It is not likely the new mobile home park will be built nearby exactly what it would cost to build the most current park does truly 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 as the Sales or Market Comparison approach to value, this likewise highly suspect. This is based on comparing the sale of the subject property with other recent sales and adjusting for differences that you might or might not know with regard to. Problems with this approach include varying expenses, rents, and management. Whether or not you’re an investor or appraiser I would likely use this approach as potential information and not draw any conclusions from that.

Lago Vista RV Park

2871 Hwy 72 W, Three Rivers, TX 78071

(361) 436-0845

https://goo.gl/maps/hAfj89yvsshumVqR9

Posted on:
July 11, 2019