If you own a mobile home park, you know the safety and profitability that comes along with it. There are different reasons why people will consider having such homes. It has something for everyone, be it the lavish lifestyle they offer or affordable luxury. It is hence, a considerable buy for many people.
But, if you are on the other side of the table and want to sell it, you should price it right. Pricing such a place at the right value is important for ensuring that you are making some profit out of such a sale and because it justifies the buyer’s interest and investment.
But, when you sell your mobile home park, there are different factors to consider so that you are making a competitive deal. Here are some factors that you should notice and pay attention to that can help set the right home price.
● Your Costing And Circle Rate
The first step is related to the calculation of the expenditure that you have done for acquiring and maintaining your property to make it how it looks in the present scenario. No seller wishes to incur a loss while selling the products, and you will become a part of the distressed sale. The price you ask for in exchange for such a home should be evaluated after you know the total costs. The house’s total cost includes the following:
- The property’s original purchase price.
- The maintenance and remodeling charges.
- Others like a brokerage.
Apart from these prices, it would help if you looked at the circle rate of the area where it is located. The circle rates refer to the minimum property price designated by the State Government. It is the minimum rate, and hence, no sale for the sale or purchase of such a property cannot take place for less than this amount. Hence, you should know this amount and place your price above it.
● Do A Comparative Market Study
Setting the price should be done after you have completed the market study. The market study compares the final selling price followed by the listing price of similar properties in a particular area. It is the best way to begin setting up the price. When doing this study, you should ensure that the properties you are comparing have a similar configuration to what you are offering.
Whether the distance is considerable between the comparable properties and your property, the pricing should be based on similar factors. Also, the prices keep fluctuating, and hence, when you are setting the price for your property, the comparison should be between the listings that have been recent and not more than 2-3 months old.
It will help if you find the average price that is per square foot price of the properties that are listed nearby. You can try and get your hands on the price trends related to such properties and the reports related to any knowledge you can gather related to the same.
● Considering The Essential Variables
It is obvious that the market’s volatility will impact its behavior, which will further play a major role in increasing or decreasing the property price. So, when planning to fix a price for your mobile home park, you should look at the crucial variables like the approach area, neighborhood, the look and age of the property, followed by the secondary factors like clubhouse, car parking, and a garage.
Also, if you are selling a home with premium features like direction-specific homes, or ones with a modular kitchen, and even the ones that offer great connectivity, like located in the center of the city with all the grocery stores and employment opportunities at walking distances, the prices will vary.
Apart from these factors, there are some other suggestions that you can take, like having a broader economic situation of the whole thing. For example, if the economy is witnessing a slowdown, there is no point in setting a sky-high price for your property. Also, it would help if you did not forget to see the city-level real estate scenario and understand how the residential market generally performs and is specifically performing when planning to sell your mobile home park.
● Try To Focus Less On The Emotions
It is human that you tend to develop emotions and attachments to the place where you begin living in. When you stay at such places for a long time, the emotions grow, and it is hard to leave such a place and move to a new place. Also, it is harder to sell such a place. But, if you want to do it, you must be rational and not let your emotions take charge.
If you don’t let your emotions take a backseat, it will affect your ability to set the right price for your property. If such a situation arises, the best way to deal with it is to step into a buyer’s shoes and think the way you would, had it been a reality. When you are in a buyer’s mindset, you will be in a better position to access the property’s value, and the biasedness angle stays out of the picture. That’s another way of setting a realistic price.
● Considering The Need Of A Change
Have you done all these things and still cannot sell your property? There are chances that the pricing is set at a higher bar, and you need to reconsider what you have done. In other cases, the situation might be that the amenities and features do not match the price. Hence, you should be open to feedback and work on the same. Sometimes, changing these things improves the situation, and you can sell your home quickly.
The list of factors considerable for pricing your mobile home park contains some obvious ones, while there are others you might not have even considered. But that’s where the beauty of the market resides, in its dynamicity. So, if you are planning to sell your property and are confused about the right price, consider these factors to kick-start the process.