SELLING a park: How to value POH? How to arrive at sales price?

mobile home university
1

When buying a park, we value the “occupied” lot at lot rent only.

When SELLING a park, how is total park value determined (asking price)? How is total rent for POH’s evaluated as a seller? How do you sell vacant spaces. Need/want to know more about how to SELL.

Thanks

Rick

2

If you want to sell your park, the asking price should be realistic and justifiable. Is there a formula for sellers?

What is the realistic selling value of an empty space or of a 1980’s park owned home that is rented for $500 per month?

If a buyer is advised not to capitalize the trailer rent of park owned homes (when looking to buy), but to just consider the space rent, then what is the sales value of that rent?

If a student buyer is taught that a vacant unrented space has no value, how does a seller of a vacant space arrive at a selling price of that space? How is it justified?

Many have looked at this post, but none have tried to answer any of the questions.

This is something every park owner will have to address. Even Frank and Dave.

How do Frank and Dave value THEIR empty spaces and park owned homes when they list a property for sale? Do they just give away empty spaces and tell the buyers they are worthless? Do they capitalize the rent? These are serious questions and are not meant to be controversial. I would like to hear from people who have actually sold multiple parks.

I need to understand how is the best way to arrive at a justified selling price and to maximize my investment when selling.

Thanks

Rick

3

We may be old fashioned, but we value the park the same way when we buy and sell. That park is worth the value of the occupied lots, and then you add in the value of the homes (not capping their rent) and other structures (like a brick house, etc.), We do not ask compensation for vacant lots – that’s one of the upsides that the buyer has, if they want to fill those lots. We traditionally place the park on Mobilehomeparkstore.com and Loopnet.com, and additionally often list it with a broker who has a lengthy in-house list of 1031 buyers. Sorry that there’s not more magic to it than that.

4

Perfect and simple answer. Thank you very much Frank!

Rick