Like most industry the Seller usually wants too much and the purchaser wants to pay too little for a mobile home playground. Certain buyers may have different motivations for purchasing a 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 in the value of a mobile home park for the typical buyer who continue to operate it as a mobile home park.
Anyone that has seen an appraisal on a house or most involving real estate can have heard mention among the 3 approaches to determining the associated with that real est. They are the Cost, Sales, and Income Decide on.
Unless you are coming up light and portable value of a brand name new mobile home park or an individual which is predominately vacant, I do avoid seeing any reason also included with the cost approach. It is not likely how the new mobile home park will be built nearby the actual it would cost to build brand-new park does truly take into account the amount of time, effort, and cash 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 one other highly suspect. Individuals based on comparing the sale of the subject property together with other recent sales and adjusting for differences that you might or might not know exactly about. Problems with this approach include varying expenses, rents, and management. Whether or not you’re an investor or appraiser I definitely 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