In order to allow for the determination of the quality and condition of each mobile (manufactured) home park, it is suggested that a picture be taken of a typical mobile (manufactured) homesite and street within the parks.

 

An accurate description of the site improvements should be noted in the account record. Items to note are whether or not there are paved roads, curbing, storm drainage, paved pads and/or off-street paved parking, public or private water and sewer. An overall description of the condition of these items should be included.

The income approach to value will be considered in the valuation of all mobile (manufactured) home parks. An income and expense questionnaire is to be mailed to all park owners. When returned, it should be used in the valuation process. Should an owner fail to return the required information, the assessor will estimate rentals and expenses and calculate an income approach to value.

 

The estimate of gross potential rental will be calculated excluding any excise tax collected by the local subdivision. A vacancy rate should be applied producing an effective gross income. Allowances for normal operating expenses for the mobile (manufactured) home park will be allowed. The net income will then be capitalized using appropriate capitalization rates. Similar parks should have similar capitalization rates. Guidance may be provided by headquarters staff.

 

The property factor description should be comprehensive enough to allow the use of the Marshall Cost Manual in the estimate of value via the cost approach.

 

The parks should be graded as cheap, low cost, average, good or excellent. It is important that all adjustments be made as to size, number of spaces, and any other appropriate adjustments for lack of certain site improvements which may be included in the cost manual rate. Also, the appropriate time and location adjustments should be made.

 

Depreciation should be determined through physical observation.

 

In determining land value, the amount of land zoned and used for mobile (manufactured) home parks should be valued at the primary rate. Land which is in excess of the amount needed to support the mobile (manufactured) home park should be valued as other acreage with comparable zoning in the area.

 

With reference to the land needed to support the mobile ​(manufactured) home park, one should ascertain, what mobile (manufactured) home density is required per acre of land. This should be accomplished through the local zoning office. After this determination is made, the number of mobile (manufactured) home pads within the park can be divided by the density requirement indicating the number of acres needed to support the mobile (manufactured) home park. For example, with a zoning requirement of seven units to the acre, thirty-five pads may be supported on five acres of land. Thus, the primary site would be five acres even though all thirty-five pads may be clustered on four acres of land.

 

The cost approach to value would equal the replacement cost new less depreciation of the improvement plus the value of the land supporting the mobile (manufactured) home park.

 

Correlation of Value:
Primary emphasis should be placed upon the income approach and market approach to value.