How would a Glamping Site Appraise?

Question

Just curious if anyone who has setup a glamping site has gotten their property appraised after?

Clearly, adding a well or septic would increase its value.

I'm just not sure if the structure would count as real estate.

I imagine a dome would, and maybe the deck on which a tent sits, but I doubt a tent would.

Bruce Woodruff · Answer

You will probably only get value from 'permanent structures' that were built with a Building Permit and passed Inspections.

Looking at it as a Business, you might have value based on Gross Income if you can prove it....(Tax Returns, Balance Sheet, P&L)

Scott E. · Answer

I'm with Travis and Bruce.

This property will probably appraise for somewhere close to the lot value.

But the appraised value might be irrelevant to a buyer who is just looking for cash flow.

Bruce Woodruff · Answer

This ^^^^^^

Dan H. · Answer

It is not clear to me if this is already used as a glamping site and has an NOI.

If it has NOI, the value is based on NOI and cap rate.  I have zero idea on cap rates for glamping, but a commercial broker should be able to figure this out.

Note adding well, tent, septic, etc. would increase value only to the extent that it would improve the NOI.

Good luck

John Underwood · Answer

Like others have said your going to get the land value plus any permanent structures.

Travis Timmons · Answer

A buyer would not be able to get traditional financing and comps are almost impossible. The value is really arbitrary - mostly just waiting on a whimsical purchase from a buyer with extra cash or an already established operator looking to add property. The most likely scenario for valuation and maximizing return is to build a business out of it with multiple glamp sites. You can then value it based on the free cash flow of the business.

Kyler J Sloan · Answer

Thanks everyone.

I was going to save for a down payment on my next house but I think a couple of glamping sites on the land I already own would have a higher ROI.

I wanted to take a HELOC if and when prices rise again and wondered how I could max its appraised value.

Shaniqua Dupree · Answer

Honestly, you'd be better off starting the glamping business and getting it appraised. Atleast you have proof of value with the cash. Then you could use business credit to fun more units.

John Carbone · Answer

Someone in the tennessee side of the smokies is selling 2 pacific dome tents brand new for under retail. they are building cabins instead. If you are determined to do domes though, I’d look online for discounts.

Michael Baum · Answer

Having all the utilities in place along with septic and water will increase the appraised value of the raw land.

Here is a good article that covers selling raw land and how to maximize the value.

https://www.landcentury.com/ar...

How would a Glamping Site Appraise?

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