The MHP Expert is back, this time to discuss 5 great tips for exiting a Mom and Pop MHP. In short, it’s all in the preparation of the sale, as well as it’s timing. Let’s say you’ve decided you don’t want to own the park.
Maybe you’re getting close to retirement, and your heir doesn’t want to carry on the tradition. It’s now imperative that you maximize your mobile home park pricing in today’s market, to see what you can get for its sale. If you’re looking to sell your park in the next 1-3 years, read on for a brief look at your best next steps.
The first thing you’ll want to do is to evaluate the current marketplace. Consider where things are; are we coming off a peak, headed for a downturn? Or is it the opposite, and we’re now back on the uptick after spending some time in the dumps?
If you’re a mom and pop MHP and have observed its trends over time, you’ll know that the market fluctuates about every 7 to 10 years. It’s a cycle that you can almost set your watch to. If you’re a mobile home park owner ready to sell, take advantage of this! Set your exodus for a time that suggests a swing in the right direction.
For example, there seems to have been a peak last October through December. Interest rates were low, buyers were lined up for deals, prices were getting higher and higher. But after the fed raised interest rates this year to deal with inflation, selling may not be the best move at the moment.
In some cases, valuation differences have climbed to nearly 25%, and not in the seller’s favor. All this means is you may need to wait a little longer to sell, which give you time to clean the space up in anticipation. We know, this can seem like a lot to consider. But luckily, you don’t have to go the road alone. Talk to us here at The MHP Expert to learn how we can help you along your MHP journey. Check out our services page to learn more.