Like most real estate the Seller usually wants too much and the purchaser wants to pay too little to get mobile home park. Certain buyers may have different motivations for purchasing a 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 continue to operate because a mobile home park.
Anyone that has seen an appraisal on a house or most types of real estate will have heard mention from the 3 approaches to determining the value of that real personal. They are the Cost, Sales, and Income Reach.
Unless you are coming up without the pain . value of a brandname new mobile home park or one that is predominately vacant, I do not see any reason to utilize the cost approach. It is not likely that a new mobile home park will be built nearby the it would cost to build brand-new park does not even take into account the amount of time, effort, and money it takes to fill that park up with occupied and paying residents.
As far because your Sales or Market Comparison approach to value, this one other highly suspect. Is actually a based on comparing the sale of this subject property together with 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. An ideal an investor or appraiser I would just use this approach as potential information and not draw any conclusions out of it.
Lago Vista RV Park
2871 Hwy 72 W, Three Rivers, TX 78071
(361) 436-0845