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?
