just because the MH is attached to RE, its value is higher. I have a '78 SW on land that I rent (cashflow critter!), and the same thing in a park, I would buy for no more than 2500, sell for 10ish; new property values put it at $30K. Yes, thirty thousand dollars. It was 20K two years ago. I tried to appeal (“I’m a professional - I know the values of these things!”), but never even got into the process; county assessor just grinned and said, “but it isn’t in a park, and you’ll likely lose an appeal.”
Soooo . . . don’t compare to MHs alone - it’s apples and oranges. That’s the whole principle of development or partial development of L/H packages - the whole is greater - usually much greater - than the sum of the parts.
Read you book and am interested in homes with land. These are hard to come by in Utah. There are a couple of areas where there are homes on owner owned land, but info about value is non existent. I have only been able to find one such sale in the MLS in the last year. Do you have any suggestions about finding out what the land is worth. I know what the mobiles are worth.I have identified two in the same park where the owners are motivated, but they seem way overpriced.
Posted by Tony Colella on July 02, 2005 at 10:08:48:
Work backwards to find the value of the property To You.
If you are going to rent the property, you know that you want a certain amount of profit so subtract that. You will need to deduct any operating expenses plus taxes and insurance. Leave some room for vacancy and non-collectibles. What’s left pays the debt service. Find out what kind of financing is available and then use that monthly debt service figure to determine what that payment can afford in purchase price.
Sales figures as well as tax assessments can be located at the courthouse and in many cases, online to help give you some more input (remember assessments can vary greatly).
That is how I would value the land/home.
Your question then goes on to say that you understand the value of the homes but also mentions overpriced homes in parks. I think you lost me there.
The sum of the home, once placed on land, is greater than the land separately valued from the home. In other words, the land/home together will likely far out value just the land plus the home.
If you are seeking just the price of land you must look at raw land plus development cost and/or a developed lot then the cost of buying, moving, setting up a mobile home, decks, skirting, utility hookups etc.
I am not certain any of this answers your question so please clarify and I will try again.