Question lot valuation

[Jim]

How are recent buyers who have bought an RV lot coming up with a valuation of the property to make an offer? It seems like lot prices are all over the place and the level of amenities does not match lot to lot.

Before I bought, I asked the sales office for the last years sales info. Then I talked with the owners of the lots in the same loop as the one I was interested in. Many of them shared info about purchase/resale prices of their lots and just as important, how many lots were about to be going up for sale and how much the owners were going to be asking.

Coincidentally, this is when I learned the term "aging out". Hadn't heard it before but it's apparently one of the biggest reasons many of these lots were going up for sale.

But back to your question. I applied what the sales office gave me, factored in what I learned from the residents, and considered the value to me when I used it over the Winter months. One other thing. I checked with the rental department to make sure my lot was going to stay rented and that the rental income justified the investment.

There are seldom any guarantees when purchasing property, especially this kind of property, so sometimes you have to apply a certain amount of "I want it so what the heck" to the equation. Either way, it's got to be a better investment than the RV we're going to be parking in it.

 

[sheridany]

I have to say being here is almost cult-like. You can get sucked into gorgeous weather days, temperatures in the 70's and swaying palm trees surrounded by water and golf courses. Every new conversation starts with what lot do you own and how much did you pay? Out of 400 lots, over 200 have turned over to new owners which is impressive. Once you add up the annualized cost of insurance, property taxes, hoa and the restaurant annual fee (1900 per year that you spend against in the restaurant), it starts to get a little rich when you can really only use it 5 months out of the year because of the weather. The real estate agent here representing both buyer and seller is the one laughing all the way to the bank.

 

[Jim]

I have to say being here is almost cult-like. You can get sucked into gorgeous weather days, temperatures in the 70's and swaying palm trees surrounded by water and golf courses.

I don't remember you saying where you are staying?

 

[sheridany]

motorcoach country club in Indio, ca.

 

[Jim]

motorcoach country club in Indio, ca.

Yeah, that's a nice place! lol, go big or go home I guess.

 

[Jim]

@sheridany, if we're both looking at the same park, I think some of the lots are pretty reasonably priced. Now I don't know what all the other fees add up to, the the lots by themselves are pretty darn nice! This is one of the less expensive, and comparatively speaking, it doesn't seem all that overpriced. After all, you are in Cali man.

 

[J&JD]

@sheridany, if we're both looking at the same park, I think some of the lots are pretty reasonably priced. Now I don't know what all the other fees add up to, the the lots by themselves are pretty darn nice! This is one of the less expensive, and I don't think it's overpriced at all. After all, you are in Cali man.

@Jim, the lot you mentioned backs up to a really, really busy road and has virtually no view hence the “relatively “ low cost. We’ve stayed at MCC Indio numerous times and loved it. Didn’t love it enough to buy as we’re not desert people.

 

[Jim]

@Jim, the lot you mentioned backs up to a really, really busy road and has virtually no view hence the “relatively “ low cost. We’ve stayed at MCC Indio numerous times and loved it. Didn’t love it enough to buy as we’re not desert people.

Ah, I see. Guess I should have realized something was amiss. But wow, that whole park is just over the top!

 

[NWIP]

We stayed there early last year, in the cheap seats. Visiting friends who were there for a month which is max allowed when renting. They just closed on a lot and we’re in negotiations for the better part of 10 months.

 

[Jim]

We stayed there early last year, in the cheap seats. Visiting friends who were there for a month which is max allowed when renting. They just closed on a lot and we’re in negotiations for the better part of 10 months.

Boy, you guys don't let any grass grow under that rig, do you?