Manufactured Home Park Valuations
Steve Wolgin has served on the Board of Directors for UMH for approximately 10 years. During that time UMH has participated in the decision making process of purchasing manufactured homes and Steve has participated in the Executive Board Meetings and Board of Directors meetings. He is very familiar with manufactured homes and the valuation process given that UMH owns over 6,800 manufactured home pad sites.
A manufactured home park is defined as a residential facility designed as a place of residence providing spaces to be rented for the accommodation of manufactured homes. The owner of the park leases lots to tenants who own the mobile homes but pay rent to the park owner for the land.
Method of Estimating Value of a Manufactured Home Park:
Approaches to value: All three approaches to value are considered in valuing a manufactured home park - the Cost, Income and Market Approach. In most appraisals the Income Approach is the approach that is relied on the most by investors coming up with their final estimate of value. Manufactured home parks are income producing properties that are purchased by investors looking for a return on their investment. The Market Approach is generally of limited use due to a scarcity of comparable and recent sales. The Cost Approach is particularly useful in estimating the value of a proposed manufactured home park.