Not the whole story - Posted by Jacob
Posted by Jacob on March 19, 2000 at 10:47:34:
I agree with about 10% of what the Sheik said. He just left out a few things. MH values can vary even park to park. In fact, the park (it’s condition, amenities, etc.) are about 50% of the value.
A good way to get a feel for what units are selling for is to talk to the park manager. He/she will have a pretty good idea for what particular unit sold for.
Keep in mind that your selling price will vary depending on your strategy. Meaning, if you are planning on a traditional “Lonnie” deal, then you can probably sell it for a bit more. Dirk’s example of receiving $365 a month for an abandoned unit is a perfect example. He was able to get this because he knew the market and because of the terms on the note.
If you are looking ot cash out, a traditonal “Jacob” deal (sorry, I just couldn’t resist) then your price will be a little lower. You will need to conform to a standard appraisal, and will need to know the base NADA value of the unit. (www.nadaguides.com)
Contrary to what many still believe, the NADA guide is a collection of sales prices grouped by region. Dealers that are members and subscribe to the guide, send in 1 page reports on the sale of different units. That data is grouped, and then divided by region. Then, you factor in the condition of the unit and the park and arrive at a pretty accurate price.
Many times, I have sold a unit and had a pm ask “how did you get that much for the unit? We sold a unit like that last week for $2500 less.” I always reply that I had an idea for what it would appraise at, and the rest is marketing. Several times, I would have sold a unit much lower, if I hadn’t had the guide to give me a better idea.
I especially believe that it can be handy when starting out. In the beginning, you have no clue what a particular unit could sell for. After all, you have no experience to back you. But, the guide can give you a good run down of prices to get you started. I find now that I don’t even look at the guide too much anymore, because I know what I can sell a unit for. And typically, it’s more than anyone else in the park can.
Best of luck to you.