Like most real estate the Seller usually wants too much and the purchaser wants to pay too little for any mobile home park. Certain buyers may have different motivations for purchasing certain park (1031 money, ability receive 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 types of real estate may have heard mention from the 3 approaches to determining the associated with that real holdings. They are the Cost, Sales, and Income Reach.
Unless you are coming up together with value of a brandname new mobile home park or one that is predominately vacant, I do not see any reason to utilize the cost concept. It is not likely if you have 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 money it takes to fill that park up with occupied and paying citizens.
As far because your Sales or Market Comparison approach to value, this can be highly suspect. This is based on comparing the sale of this subject property with the other recent sales and adjusting for differences that you might not know with regard to. 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