I own 3 mobile home parks that have water provided by private wells on the property. I pay an operator to regularly test that water, treat it, and file the state paperwork required and charge a monthly fee to tenants to cover this cost. There is a local utilities company that has approached me about buying the well systems so they can take over and bill the tenants. The tenants would almost certainly end up paying more, but the new owner/operator would also be better equipped to handle emergency situations that occasionally arise.
They want to know how much I would like to sell the systems for. I would almost be willing to give them away simply to get rid of the liability, but on the other hand if they are willing to pay for it, why not try to get a market rate valuation. The trouble is, I’m not sure what a market rate valuation actually is!
Any suggestions on how to determine a price?