Hi All,
I will be going through a refinance soon, and I noticed that the Cap rates that appraisers use for mobile home parks seems to be higher than where the market is currently at. I have an appraisal coming up in about a week, and I’d like to hand some comps to the appraiser demonstrating what current cap rates are in the area. However, I’m realizing that it is difficult finding any comps for sold mobile home parks, #1 because Texas is a non-disclosure state and #2 because there are not many parks which have sold in the Corpus Christi area recently. I’m looking for some recommendations for how I could get ahold of some comps to help guide this appraiser to a lower cap rate, that is more reflective of where the market is at currently.
Thanks,
Aaron
Try reaching out to a few brokers who specialize in mobile home parks. What kind of cap rates are finding that appraisers are using?
Brokers should easily be able to provide this information. If you can get access to CoStar, you should be able to pull comps from that as well.
I’m the National Practice Leader for MHC’s and RV Park appraisals at BBG, a national appraisal and assessment firm. Feel free to reach out to me at ehanson@bbgres.com
My partner is a commercial real estate appraiser.
By all means offer comps. But don’t be surprised if the appraiser doesn’t use them. Borrowers and their brokers often offer comps but the comps they offer are not always useful.
But do discuss your concerns with the appraiser. He or she may be able to explain their methods or use your input. Appraisers tend to stay current with market conditions; it’s their job.
Best wishes!