Like most property 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 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 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 involving real estate can have heard mention from 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 with the value of a brand name new mobile home park or an individual which is predominately vacant, I do avoid seeing any reason to use the cost tackle. It is not likely the new mobile home park will be built nearby exactly what it would cost to build an alternative park does not just 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 is also highly suspect. Need to based on comparing the sale of the subject property with other recent sales and adjusting for differences that you might or might not know pertaining to. Problems with this approach include varying expenses, rents, and management. An ideal an investor or appraiser I would likely use this approach as potential information and not draw any conclusions from it.
Lago Vista RV Park
2871 Hwy 72 W, Three Rivers, TX 78071
(361) 436-0845