Like most marketplace the Seller usually wants too much and the purchaser wants to pay too little to get mobile home school. Certain buyers may have different motivations for buying a certain park (1031 money, ability attain 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 continue to operate because a mobile home park.
Anyone that has seen an appraisal on a house or most involving real estate will have heard mention among the 3 approaches to determining the value of that real est. They are the Cost, Sales, and Income Get near.
Unless you are coming up without the pain . value of a brandname new mobile home park or the one that is predominately vacant, I do not see any reason to use the cost concept. It is not likely how the new mobile home park will be built nearby and what it would cost to build an alternative park does genuinely take into account the amount of time, effort, and funds it takes to fill that park up with occupied and paying residents.
As far given that the Sales or Market Comparison approach to value, this furthermore highly suspect. Famous . based on comparing the sale with the subject property together with other recent sales and adjusting for differences that you might or might not know with reference to. Problems with this approach include varying expenses, rents, and management. An ideal an investor or appraiser I would certainly 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