What is a ballpark price for an appraisal for bank financing on an 8 acre tract with 37 lots? 1.6 acres is undeveloped.
I just had this done with pretty much exact numbers you have there… I paid $1500.
$1,500 - $2,500. Banks now have to be the ones to secure and pay for the appraisal. -jl-
A couple of thoughts here…
In my line of work there is no doubt you get what you pay for. There are plenty of appraisers out there who charge very little, and the fees match their experience.
If you want something useful from your appraisal, hire someone with experience. What you should see in the appraisal are comparable rentals, occupancies of competing parks, who pays utilities, sales of mobile home parks that include financial data, income, expenses, and cap rates.
Nearly every park I appraise the owner tells me the last appraiser clearly didn’t know what they were doing. Just because an appraiser is “certified general” it does not mean they are qualified.
Thank you Erik. What would you charge for an appraisal on a park this size?
Erik is spot on. I am very, very lucky in my wife is a MAI appraiser. The big difference is they look at the property, the local area, the county and the state. The unfold how economic conditions might affect the value, they unpack trends and possible highest and best uses. It is a big picture evaluation not just a quick and dirty income eval. It is hard to overpay for intelligence. While the cost might seem high- if something is rooted out that makes the park a no go- you might have just saved your butt… and a lot of headaches…
Thank you all for your comments. The reason I asked is that my bank put out an RFP for the appraisal. The winning, lowest, bid was $3,400 which I thought was high. My loan officer told me that all other responses to the RFP were $5,000 and over. I would have originally guessed that $1,500 to $2,500 would have been in line.
I won’t post specific fees here on the forum. That being said, the more time it takes, the more I have to charge. And that’s for all property types, not just MHP’s. For example, if I have to spend a day driving to and from the park I have to charge more than on a park just down the street. Everything in our business is time and opportunity cost.
Also, sometimes the banks will only choose to bid to firms that are more expensive, this is usually to ease the bank’s concerns or for their protection.
But in the end, ANY money paid to someone not qualified is a bad investment.
Any recommendations for a good MHP appraiser in Albuquerque, NM? I have a park that I am thinking of selling. Wanting to find out a good price point to start at.
Thanks.
Happen to see a park appraisal that was for $2.450,000 in south Florida–nothings changed except we are in a seller market and it was listed for $3,000,000 and we offered $2,500,000 and was turned down August 1, . Do a P&L and go for a 6.5 cap rate selling price and it will probably sell. Some buyers will have buyers remorse when they realize that 6% return is fine for Sun Comm. where the long term hold is 25-30 years but if buying for a 5 year or less flip–ouch. Appraiser are not your best friend to find the highest value of your property–buyers are and as noted buyers will even go less than 6 cap to get their feet wet!!!
Try John Neet from California. He covers most western states and knows the MHP industry as well as anyone. johnneet dot com