Oct 14, 2021
MHP Podcast Episode 8: How to Get Your Mobile Home Park Appraisal Right Every Time
No matter how many mobile home park or RV community deals investors have made in their careers, they can fall victim to three major errors when getting an appraisal for the purpose of buying a property. I’ll explain these common errors, or obstacles, and show you how to maximize your profit potential by avoiding these Big Three no-nos.
As always, this episode, hosted by Maxwell Baker, was brought to you by The Mobile Home Park (MHP) Broker’s proprietary Community Price Maximizer. With our system and our very experienced brokers, we’ll guarantee you a higher price when you later sell your mobile home or RV community.
Here Are The Show Highlights:
- Appraisals are difficult, even if you're buying your second, third, fourth, fifth or tenth community. The MHP Brokers has worked with clients who own more than 100 mobile home parks or RV communities and even they struggle with appraisals. (1:08)
- There are three common appraisal obstacles or challenges that could screw up a deal for even a veteran buyer. (1:08)
- The first of these is getting a deal with artificially high, inflated lot rent numbers that can make a community look more valuable than it might be. (1:45)
- The second possible obstacle is getting a quote asking you to pay what might be the highest per pad price in the state when our sales data might have identified a more realistic figure based on our constantly updated market analysis. (2:06)
- The third error is when your lender receives bids and picks an appraiser with little or no experience with mobile home or RV parks. That’s why it’s so important to let us work with you. We work with appraisers all the time and can recommend appraisers with experience in this narrow field. The lender doesn’t have to accept our recommendations, but they’ll often add at least one of our contacts to the list of three from which they’ll make their selection. (2:28)
- The MHP Broker ‘appraisal in a box’ is our systematic and organized marketing package of rent comps and other marketing information that can make the appraisal easier and more accurate. (3:58)
Want to know more about The MHP Broker approach to accurate and beneficial appraisals on every park you attempt to buy? Don’t hesitate to drop me a line at info@themhpbroker.com or give me a call at 678-932-0200.
Power Quotes From Max on Episode 8:
- “Since 2010, community lenders have had to source a minimum of three appraisers and then go through a blind bidding process to get the job.”(3:15)
- “We pull fresh rent comps, we pull fresh sales comps, and we make sure that it's all in there to show (lenders) where the market is.”(3:58)
- “We are very strict with our research crew in Indiawith getting rent comps, so we're very accurate. But a lot of these big name guys (competitors) will just fart up a number and just throw it in there. Be careful with that and make sure you do your own rent comps.” (4:18)
- “Our research team spends a combined 315 hours a week databasing and finding real sales data for 15 different states that we operate in. We always have the most up-to-date sales data and trends for your community locally.” (5:46)