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Understanding the RV Park Market: Why Sellers Should Adjust Expectations and Consider Seller Financing

By: Shalin Patel

The RV park market has experienced remarkable growth in recent years, particularly during the COVID-19 pandemic. During this time, more people sought safe, affordable, and socially distant travel options, which led to RV parks being at full capacity and low interest rates creating an ideal environment for sellers to ask for premium prices. Fast forward to today, and the landscape has shifted. RV parks are no longer at full capacity, interest rates have risen, and buyers are becoming more cautious. This change makes it harder for sellers to command the same prices they could a few years ago.

Why Sellers Are Still Asking for High Prices

It’s understandable why some sellers still expect to sell their RV parks for the high prices seen during the pandemic. With demand at its peak, low interest rates, and RV parks consistently full, the conditions were perfect for sellers to ask for top dollar. Buyers were eager to purchase, knowing they could secure favorable financing and maintain strong occupancy rates. As a result, RV parks were highly sought after, leading to a seller’s market where prices soared.

However, the reality has shifted. With rising interest rates, a change in travel behavior, and increased economic uncertainty, RV parks are no longer in the same position as they were during the pandemic. Occupancy rates have dropped, and buyers now face higher financing costs. Sellers who are still asking for premium prices may face longer timelines to sell or may have to lower their asking price to find serious buyers.

Educating Sellers on the New Market Realities

It’s important for sellers to realize that the market has changed. What worked during the pandemic might not be applicable today. Buyers are more cautious and discerning, and financing is more expensive with the rise in interest rates. Sellers who continue to expect pandemic-era prices may struggle to sell, or they could find themselves needing to significantly lower their asking price.
To succeed in today’s market, sellers need to educate themselves about the current economic context and adjust their expectations accordingly. This means understanding that the high prices seen during the pandemic are no longer realistic, and that they may need to lower their asking price to attract serious buyers. It’s also critical for sellers to stay informed about market trends, work with experienced brokers, and be flexible in negotiations.

Why Seller Financing Can Help Sellers Get a Better Price

One strategy that can help sellers achieve a better sale price is seller financing. Seller financing, or owner financing, allows the seller to act as the lender, financing the buyer’s purchase directly—often with more flexible terms than traditional lenders offer.
In a market where interest rates are higher, seller financing can be a game-changer. By offering financing directly to buyers, sellers can attract a wider pool of potential buyers, particularly those who may struggle to secure financing from traditional lenders. Most banks are hesitant to lend on RV parks because they view them as a more risky or niche investment. However, as the RV park sector becomes more mainstream—similar to mobile home parks—seller financing may be the only viable option until banks start offering more favorable loan terms for this type of property.

Additionally, seller financing can allow sellers to command a higher price for their property because they offer buyers an attractive, flexible financing option in a market where traditional financing is less accessible. The ability to offer lower interest rates or more favorable terms than traditional banks could result in a higher final price for the seller. This is especially true because the interest payments alone can add hundreds of thousands of dollars to the seller’s bottom line over the life of the loan.

Real-World Success with Seller Financing

In fact, every RV park deal I’ve closed in 2024 and 2025 has been seller financed—and in each case, it helped the seller get the price they wanted and the buyer secure the terms they were looking for in a financing deal they wouldn’t have been able to get through traditional banks. By using seller financing, these deals were structured to meet both parties’ needs, with the seller achieving their desired price and the buyer able to access a more manageable financing option than what traditional banks could offer. Seller financing allowed the transactions to move quickly and smoothly, providing a win-win situation for both the seller and the buyer.

The Benefits of Seller Financing for RV Park Sellers

1. Higher Price Potential: Buyers are often willing to pay a higher price for more favorable financing terms, especially in a market with high interest rates. Offering seller financing can make the property more attractive, allowing sellers to command a higher price.
2. Wider Pool of Buyers: Seller financing can attract buyers who may not be able to secure financing through traditional banks, increasing the pool of potential buyers.
3. Faster Transactions: Seller financing can streamline the process and reduce closing times, as fewer third parties (like banks) are involved in the transaction.
4. Ongoing Income Stream: With seller financing, sellers can continue to receive a steady stream of income in the form of monthly payments, which can be appealing for those seeking ongoing cash flow after the sale.
5. Tax Advantages: Seller financing can provide tax advantages, such as the ability to defer taxes on the sale, depending on how the deal is structured.
6. Increased Bottom Line: The interest payments from seller financing can add a significant amount to the seller’s profit over time. In fact, the interest alone could contribute hundreds of thousands of dollars, making seller financing a profitable strategy for maximizing the sale price.

Conclusion

The RV park market has evolved since the boom days of the COVID-19 pandemic. While sellers may have enjoyed favorable conditions with low interest rates and high occupancy rates, today’s market demands a different approach. Sellers must adjust their expectations, be flexible in pricing, and consider creative strategies like seller financing to achieve a successful sale. As most traditional banks remain hesitant to lend on RV parks, seller financing can often be the only option for buyers looking to finance their purchase, making it a powerful tool for sellers who are looking to close a deal at a price they’re happy with.

By educating themselves on the current market conditions and exploring alternative financing options, RV park sellers can navigate today’s more challenging environment, potentially securing a better sale price and moving their property faster. Seller financing not only opens up more buyers but also allows sellers to secure a higher sale price and maximize their profit, making it a valuable strategy in today’s market.