E/I in cost approach?

[Doug Wegener]

Inquiring minds want to know,

 

[Terrel L. Shields]

Since here the bulk of such sales are separate land/MH sales, and no one is building and selling MH Park or subdivisions, no excess "profit" is made. The cost is land, utilities, set up and moving, and the actual unit cost at the dealer.

That might contrast with something like retirement or snowbird subdivisions in say, Yuma, AZ or Phoenix.

 

[Doug Wegener]

I saw one in Myrtle Creek , Oregon in a small new manufactured subdivision recently /I have good land costs and costs of the manufactured home. If I subtract All the costs from the closed sale (including a trip cost of the home from the factory and site hookup costs ) and ALSO subtract a sales commission, I get 15.88% profit for E/I.

I see your point. If a developer is buiding them for re-sale then the E/I would be appropriate. I mean otherwise, why do it?

 

[Sadie]

Its included in the cost/SF for site built and I think there is a place for it on the MH form. But not sure. But yeah, it should be there. No one works for free and not much is free in this world.