Hello. I’m looking at a park currently where the owners have never established a lot rent for the park. They just charge a specific amount to rent the homes with no mention of lot rent. I’ll require bank financing, so I’m just curious if any one knows how an appraiser for the bank would value this park with no record of lot rent. Also, curious of how I should value the park using the income approach, if they don’t provide that information. I know that it’s built into the home rental, but when I ask they act like its a foreign concept to actually have lot rent and home rent broken down.
From my perspective, I would plan on selling all of the homes, so I would ultimately put the lot rent at the top of the market, but they obviously haven’t done that so I’m not sure that I should pay for that. Also, I’m not sure an appraiser would see it that way either?
Lastly, if anyone has any feedback on chip seal roads and how that would effect the value that would be appreciated too.
Thanks in advance for any input or feedback you can provide.