Selling a mobile home park or RV park has become an increasingly popular trend over the past year, with shifting markets and growing buyer demand. With a U.S. market size valuation of $8.3 billion in 2020, the numbers speak for themselves.
But selling a mobile home park is far from easy. There are countless factors to think of, with no two campgrounds offering the same facilities, acreage and valuations.
Every sale must be made with a clear head and expert legal advice. Our business and corporate transaction lawyers can provide exactly that while guiding you through the sale process. Here are the key areas you should be aware of:
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How to Sell an RV Park or Mobile Home?
Uncovering The True Value of Your Campground
As with all sales, one of the major risks of selling a mobile home park is undervalue or overvaluation. It’s wise to use a professional appraisal service, but this will come at an additional cost. However, that might not factor in the demand for RV parks in the future. A major wave of retiring baby boomers is on the way, which could mean the true value of your campground is more than first expected. It is also easy to forget that you’re selling far more than just land when selling an RV park. Included in the sale will be all the equipment, amenities, branding, advertising, utilities and much more. If you are planning on selling an RV park, then make sure you have the following information available to determine the actual value:- Age of equipment and records of last repairs
- Vendor contracts
- Advertising partnerships
- Amenity types and amounts
Timing is Everything
Timing is crucial when selling a mobile home park. Most campgrounds have busy seasons and off-seasons and starting the process at the wrong time can leave you disappointed. While a potential buyer could make their purchase at any time in the year, sellers should start preparing their business at least a year before the desired sale date. Having everything ready to go can help you cash in on great offers and opportunities without the need to panic into a low-ball offer. Or business transaction lawyers can help analyze your situation, providing expert advice on ownership decisions when selling an RV park.Making Succession Plans
When selling a mobile home park, one of the most important steps to take is an exit strategy. An exit plan in place will reassure a potential buyer and allow for a smooth transition between you and the new owner. This is easier said than done when it comes to campgrounds. The volatility of RV park markets increases the pressure, so knowing how and what you need to do when the time comes can be extremely helpful. Any succession plan should be over the management of financial, tax or legal issues, human resources and logistics. Our business transactions lawyers can help you make these hard decisions, ensuring you don’t overlook any essential legal issues.Post-Sale Involvement
Many campground owners prefer to cut their ties to the business entirely. But others may choose to stay involved and help the new owner ease into the role. These plans must be determined ahead of time. Prospective buyers will need to know your vision and the arrangement before closing a sale. These decisions can greatly impact the type of buyer you’re looking for and are one of the main differences between selling a mobile home park and other businesses.- Will you be willing to show the new owner the ropes?
- Do you want the new owner to gain control from day one?
- What kind of new buyer are you looking for?
