Many questions should be considered before buying a lot for your motorhome.
By Janet Groene, F47166
June 2015
Are you a full-timer who is considering putting down roots? I don’t mean buying a time share or a campground membership, but purchasing real estate.
One option is to buy rural acreage where you can connect to electricity, install a well and a septic tank, and simply hook up your motorhome, if zoning allows. Then, you can roam elsewhere for as long as you like while leaving behind (and occasionally returning to) mostly vacant land that just might increase in value.
On the other end of the spectrum, you can spend many thousands of dollars for a small lot in a luxury resort that features a spa and an 18-hole golf course. If you add a structure such as a roof-over or a Florida room, the lot cost could easily exceed six figures.
Some full-timers purchase two sites, one for winter and another for summer, usually allowing a leisurely road trip between the two. Others buy a spot to use as a home base for now and as a place to retire later. Still others are weary of paying seasonal rent and are ready to buy a lot simply as an investment.
The time to start shopping is now. Waiting lists have been long at some Escapees Rainbow and co-op parks, where it has taken people months or even years to obtain a lot. As of late April, RVParkStore.com listed about 470 RV lots for sale in the United States, but nine states had no listings at all. Canada had only a handful of listings in three provinces. In many of North America’s most popular leisure areas, such as those with mountains and waterfronts, no more RV lots can be added.
The advantages of owning your own lot in a campground community include being a member of the owners association and having a say about how things are managed. Nobody can raise your rent, although homeowner maintenance and management fees can increase. Unless special circumstances arise, the property can’t be sold out from under you.
Also, if the community allows you to rent your site when you’re not using it, the property can earn money for you, so you might want to consider the possible return on investment. (You’ll want to ask your tax adviser about tax consequences if you rent out the lot.)
Or, you can choose to let the site sit empty, allowing you to come and go as you please without reservations. Moreover, the property may qualify for bank financing, and it might increase in value.
Any number of variations may come into play when buying this type of real estate. The possibilities include condo lots, co-op parks, long-term leases, opportunities to rent or lease with an option to buy, owner financing considerations, and other fine points. Will you receive a deed? Title insurance? Does the park require higher liability insurance than you already have on your coach?
When shopping for lots in campgrounds or camping resorts, it’s important to understand whether you’re buying a lot deeded to you or a lot that is part of one deed for the whole property. Have a real estate attorney look over the contract.
Know exactly what is in the deed covenants and park rules. For example, will your present motorhome be unwelcome at the site after it reaches a certain age? Can the grandchildren visit or move in with you, or are age restrictions imposed? Is there a limit on how long guests can stay? Is there an extra charge for your guests to use the swimming pool, fitness center, or golf course?
Are pets allowed? If so, restrictions might apply, such as a limit on the number or size of your pets, or a ban on certain breeds of dogs.
Once you have a place of your own, you’ll probably spend more and more time there, so it’s smart to look beyond the campground itself. Where is the nearest airport, hospital, and supermarket? What about air and water pollution? Drought conditions? Crime rates? Are there local festivals and attractions for entertaining visiting family and friends? How about the local job market if you seek part-time work?
Here are additional questions to consider:
- What is the full cost of year-round ownership, including utilities, taxes, and maintenance fees? The more amenities the park offers, the higher the monthly fee. The highest-ticket item is a golf course. Is golf membership optional, or must lot owners pay to maintain the course?
- What is the history of one-time assessments for road maintenance, tree removal, and other major upgrades or repairs? Are big improvements on the drawing board for items such as road paving and pool renovations that could result in a hefty bill in your mailbox?
- Does the campground developer have other property waiting for development after your section is sold out? Your “used” lot in an older section may be harder to sell or finance than a lot in an all-new section.
- Is the park still under construction? Once it’s sold out, the developer’s high-voltage promotion ends. The park may even go private. To most lot owners, this privacy is welcome. To a lot owner who wants to sell, however, lack of visibility can make selling more difficult.
- What is the resale record for existing lots? When you retire, can you install a park model on your lot as a permanent structure?
Pay attention to the buying process so you’ll have a handle on what will go into selling your lot, when and if the time comes.