Hi,
I’m trying to sell a few MH in our park and it trying to find ways to determine it’s value. We understand from the income approach but not sure cost-wise how to look at it. Any suggestions? Thanks
I would suggest reaching out to one of the nationwide MHC brokers and they will do a “brokers opinion of value” for free. Try ARA Newmark, CBRE, JLL, and Marcus & Millichap. I can personally introduce you to a few if needed. NoahMiller@geltfinancial.com
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You are trying to sell your homes in your community? If you want to get rid of park owned homes, you are not typically gonna make a profit on those and the value of older homes is not very high. You wanna look at your market and see how affluent it is. A California or Florida park will have more affluent clientele. So be reasonable with the price based on that.
A good way to find the price is to look at Craigslist or Facebook used homes near the age And condition of what you are trying to sell. You’ll quickly notice some trends. Then take a look at other more affluent or less affluent markets and then you’ll get a solid idea of what they can go for and tailor it to your community.
You want to be in the business of land and not in the in the trap of park owned homes. So don’t get too hung up on making a profit on the homes and realize the value of a lot that is occupied by an owner who has pride of ownership vs a transient tenant on a rental.
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We approach valuing homes a couple of ways to try to zero in on a price. First is to determine what you would rent the home for, subtract your lot rent, subtract $100 and you have a reasonable monthly home payment. Then multiply that by the number of months to pay off the home - we use 4 or 5 years for an average home, 3 years or less for older homes. Second, for nicer or more newer homes you can use 21st Mortgage calculator using the above number to calculate the price. If you can sell through 21st mortgage you can ask them for the NADA value - not always accurate but it is another data point to consider. Finally we do a bit of trial and error to see what the market will pay. We don’t try to make a lot of money selling the homes, but try to recover our costs. We don’t give them away too cheap so the buyers see value ion the home and ate making a commitment to it. But our overall objective is getting paid-off home owners in the community .
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that would be very helpful. I have 22 sllips in IA