Hi all. Long time reader, but I’ve never posted. I have been looking to buy my first MHP and I found an interesting opportunity. I am trying to decide a fair offer on an MHP near where I live. If you just do a rough income based valuation, it’s worth somewhere around $1.2 million. However, if you look at the city tax records, the property is assessed at just over $1.4 million.
So, how do I account for that in a valuation? The tax assessment is for the property alone, and does not take into consideration the revenue the park makes. Is my valuation an either or approach? Like, either property value or income approach, but not both? Or is there some expectation that I will consider the high property value in my offer?
Looking forward to learning from you all!