Like most property the Seller usually wants too much and the purchaser wants to pay too little for every mobile home zoo. Certain buyers may have different motivations for choosing a 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 it as a mobile home park.
Anyone that has seen an appraisal on a house or most types of real estate will have heard mention of the 3 approaches to determining the associated with that real estate. They are the Cost, Sales, and Income Approach.
Unless you are coming up utilizing value of a brandname new mobile home park or an individual which is predominately vacant, I do not see any reason get a the cost approach. It is not likely how the new mobile home park will be built nearby the actual it would cost to build the most current 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 the Sales or Market Comparison approach to value, this likewise highly suspect. Is actually a based on comparing the sale of the subject property along 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 definitely 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