Value for a Park Model in a seasonal campground

[Bobads6]

I'm looking to buy a park model in a nice seasonal campground near Lake Erie. Most units in the campground are RVs but there are a few other park models around. The unit of interest is 11 years old and in excellent shape. The current owner added a large concrete pad, a permanent awning, a small deck and a small shed. The lot has attractive landscaping and all furnishings plus a golf cart are included in the selling price.

The campground owns the site and charges a seasonal rate rate that covers water and sewer among other things. Renters pay for electrical usage at the end of the year.

My question is "How do I determine if the asking price is a fair price?" NADA average retail price for the park model is about one quarter of the asking price. Is there missing value in having the unit already on site and ready to move in?

I can understand paying something for the awning, deck and shed, but it seems less reasonable to pay for concrete that is on land owned by the campground and unable to be moved. Don't these extras depreciate in value? I wouldn't think their full replacement cost would make up the rest of the asking price. Am I missing something?

 

[Back2PA]

Are there any open seasonal sites in that campground, or others nearby? If yes, I would calculate the cost of professionally installing the improvements (plus a used golf cart)  then hit some dealers and ads for similar park models plus the cost to place it on the site, and that should give you a good feel for comparative value.


If seasonal sites in that area are exceptionally difficult to find, that would drive the price up.

 

[Gary RV_Wizard]

How does the price compare with larger RVs already set up and ready to use?  Are sites hard to get there and the location desirable?  A fair price is whatever somebody is willing to pay for it... Are there likley to be other bidders?

On your side of the negotiation is the fact that the site improvements have zero value if the owner moves the park model somewhere else, and moving a park model is expensive.

 

[grashley]

I have a friend with a similar setup on Kentucky Lake.

You are not really buying the Park model, although it is included.  You are really buying the right to rent that space, which happens to include the camper, golf car, awning, shed, etc.  The camper in good condition is a bonus.

The campground my friend is in, when a camper is sold (along with rights to rent the lot), it is frequently replaced with a newer bigger camper by the new owner.

What is it worth to you to be in this campground on this site?

 

[SeilerBird]

My nephew's son bought a park model in my park three years ago from the park I live in. It was advertised at $10K but since he paid cash he got it for $8800. Very nice unit, one bed, one bath and a giant A/C. His lot rent here is $425 a month for the lot, water, sewer, trash and yard maintenance. His electricity is separate. He pays about $100 a month for electricity but he keeps his house cold enough to hang meat in.

 

[darsben]

So the present person made what might be considered improvements to the lot. Will you as the new owner be responsible for returning the land to its previous state should you move off the lot?
If so then the improvements have a negative value.

Some parks require the return of land to original condition  ask the landlord.

 

[stevenpiper]

I rented a parked model for 10 years near the lake. Can't say the price but it was a worth money spending

 

[Kirk]

My question is "How do I determine if the asking price is a fair price?

Since such prices not only depend on the condition and value of the park model, an even bigger factor is where you are shopping. Just as you would if buying a house, you need to look for compatibles to see what they sold for. Check the advertisements for similar ones that are for sale.

 

[Isaac-1]

The thing I would be more concerned about is the stability of the RV park ownership, are they likely to sell out to a housing developer next year, ...

 

[DutchmenSport]

You have to decide what it is worth to you. No one else can make that decision for you. You either want the trailer with the conditions given and are willing to pay, or else you are not. If you feel the deal is too costly, not acceptable, too risky, or any other red flag that affects your bottom dollar, then bail out using your head before you get caught in a situation you'll regret because you were using your heart.

On the other hand, if the heart is stronger, then accept the terms. Only you can make that decision. What's it worth to you?

 

[gwinger]

The thing I would be more concerned about is the stability of the RV park ownership, are they likely to sell out to a housing developer next year, ...

Or a BIG Nationwide RV Park company? Then find out you have to move it since they only want short term sites. More easy money involved. $500-600/month for the park model lot rent compared to $1500-2000/ month by the night.

 

[Reinigm]

Not to get off track on this, but just how cold does it get on Lake Erie in the winter?

 

[Rob&Deryl]

This is a 3 year old thread.

 

[Ernie n Tara]

In todays market expect to pay a premium in a desirable park. I just paid 70K for a 22 year old park model. There were two other cash buyers right behind me wanting the unit. It's nice, but the unit by itself is worth about 25K. The balance is LOCATION, LOCATION, LOCATION!
Frankly, Tara will be much more comfortable in it if anything happens to me, We are living
In a moterhome thats worth more than I paid and depreciating just setting there. And we could afford it!
You make up your mind what's reasonable in your circumstances and go from there.
Ernie


And there are no hearses with money bags!

 

[nicolacam]

I've recently got the 2018 KeyStone Residence for $61k. Can't say it was the cheapest purchase in my life, but we're satisfied with it. At first, I wanted to get the new Forest River for almost $70 but due to unforeseen expenses, I had to find something else. We had to pay paving contractors to repair our driveway which wasn't in the best state (but there was a need to do that asap). Of course, Forest River is better from any perspective but the KeyStone is still great.