Mobile Home Park / RV Park Appraisals

 

Mobile Home Parks and RV Parks are generally appraised based on their income generating capacity.  The sales approach  can also provide compelling evidence of value.  The cost approach, however, does not generally provide a reasonable market value opinion, since mobile home parks are usually sold as "going-concerns," and the cost of the infrastructure and other improvements does not take into account the business entity / management aspects.  The cost approach is, however, always considered as required by the Uniform Standards of Professional Appraisal Practice (USPAP).

 

Mobile home parks can vary a great deal depending on the market that they serve and their age.  Some parks are focused on family, others on retirement living and some are resort / recreation type parks.  Older mobile home parks were called "trailer parks" and were designed with spaces for relatively small units.  While some of these older parks are still around today, the demand for them is dwindling.  Owners generally salvage the functionally obsolete units and rent them to keep the parks alive.  Since the original parks were constructed, more recent parks have been built to accommodate what has been an ever changing demand for larger and more modern homes.

 

Mobile home and RV parks require competent, intensive management to survive.  Live-in, on-site managers are often required and they often work 7-days a week to keep up with resident demands.  We have found most parks to be owner-managed, however there are some that are managed by professionals.  

 

Mobile homes are considered to be personal property unless they are permanently attached to the real property in Nevada and re-classified by the City or County government.  At times there are tax benefits to an owner if the mobile home in one category or another.  Generally the mobile homes that are not attached and not classified as real property are more difficult to mortgage but they also are taxed at a lower rate.  Mobile home parks can be simple or complex depending on whether the owner wants his owned mobile homes appraised and the extent of common area improvements and recreational facilities.

 

The appraisal of mobile home parks usually requires access to specialized data sources.  Location, size, infrastructure improvements, age, occupancy, amenities, management and space rental rates are all important factors that are considered in the analysis.  

 

Contact us by e-mail (grigdon@cox.net) or by phone at 1-702-568-6699 to discuss your mobile home park or RV park appraisal assignment.  

 

 

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Copyright 2014 Horizon Village Appraisal

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.