Like most property the Seller usually wants too much and the purchaser wants to pay too little for any mobile home zoo. Certain buyers may have different motivations for purchasing 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 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 associated with real estate may have heard mention on the 3 approaches to determining the associated with that real property. They are the Cost, Sales, and Income Reach.
Unless you are coming up with the value of a product new mobile home park or a single is predominately vacant, I do not see any reason to utilize the cost method. It is not likely that a new mobile home park will be built nearby the it would cost to build the brand new park does not just take into account the amount of time, effort, and cash it takes to fill that park up with occupied and paying passengers.
As far given that Sales or Market Comparison approach to value, this can be highly suspect. Is actually a based on comparing the sale of this subject property along recent sales and adjusting for differences that you might not know pertaining to. Problems with this approach include varying expenses, rents, and management. Pc an investor or appraiser I definitely use this approach as potential information and not draw any conclusions from it.
Lago Vista RV Park
2871 Hwy 72 W, Three Rivers, TX 78071
(361) 436-0845