Like most property 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 purchasing 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 will continue to operate because a mobile home park.
Anyone that has seen an appraisal on a house or most types of real estate could have heard mention among the 3 approaches to determining the associated with that real property. They are the Cost, Sales, and Income Decide on.
Unless you are coming up with the value of a brand new mobile home park or one that is predominately vacant, I do not see any reason also included with the cost concept. It is not likely how the new mobile home park will be built nearby the it would cost to build a new park does truly take into account the amount of time, effort, and money it takes to fill that park up with occupied and paying residents.
As far as the Sales or Market Comparison approach to value, this can be highly suspect. Individuals based on comparing the sale of the subject property to additional recent sales and adjusting for differences that you may or may not know with regard to. Problems with this approach include varying expenses, rents, and management. Whether you are an investor or appraiser I would likely 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