Like most property the Seller usually wants too much and the purchaser wants to pay too little for every mobile home playground. Certain buyers may have different motivations for buying 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 will continue to operate because a mobile home park.
Anyone that has seen an appraisal on a house or most varieties of real estate could have heard mention from the 3 approaches to determining the associated with that real personal. They are the Cost, Sales, and Income Approach.
Unless you are coming up together with value of a brand name new mobile home park or 1 which is predominately vacant, I do avoid seeing any reason also included with the cost tackle. It is not likely if you have a new mobile home park will be built nearby exactly what it would cost to build brand-new park does genuinely take into account the amount of time, effort, and funds it takes to fill that park up with occupied and paying passengers.
As far because your Sales or Market Comparison approach to value, this can be highly suspect. Individuals based on comparing the sale on the subject property with the other recent sales and adjusting for differences that you may or may not know pertaining to. Problems with this approach include varying expenses, rents, and management. Whether you’re an investor or appraiser I would certainly 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