Determining accurate value for a small park?

[Eric Bassett]

Hi everyone. We are in the process of negotiating on a small park. The problem I’m having is determining what an accurate value is. The park has 8 total pads. Currently there is 5 poh, 1 tenant owned home, and then two empty pads which are ready to be filled. Additional upside is there is around five acres so there is room to greatly expand and add more pads.

Lot rent is $325. Park owned homes rent for average of 650. Utilities are private(well and two septic systems) both are in excellent working condition and the park itself is very clean and very well run.

The issue I’m having is that the seller is putting too much value on the park owned homes and not valuing the park based on lot rent and home value separately. So the numbers I’m coming up with are much less than the asking price. They have offered seller financing so that is a plus.

I guess I’m just looking for some insight before submitting an offer that’s half of what they have it listed for. Thanks in advance!