From “Ask Kit!”:
Q: We are looking at a B&B to buy and wondered how to evaluate the business end of it. We have talked to an appraiser on the house and land.
Making an Offer
Valuing a Former B&B
From “Ask Kit!”:
Q: In valuing a former 5-BR B&B (business gracefully discontinued about 2 years ago due to owner’s outside job responsibilities), is there a rule-of-thumb discount as compared to a currently operating business?
Researching Value
From “Ask Kit!”:
Q: We are looking at a guesthouse for sale by owner. I have researched the area land value, home sales, etc… and it seems that the price is not supported by my research.
How do I determine a purchase price?
From “Ask Kit!”:
Q: We are looking at several properties and trying to decide after looking at gross income (some records only show net income) how you decide what to offer?
Guestroom Licensing Issue
From “Ask Kit!”:
Q: If an Inn has 13 bedrooms but it says only 6 are for B&B operations, is that a licensing issue?
How do I buy a B&B without using a broker?
From “Ask Kit!”:
Q: We have found a B&B that’s for sale without a broker because the seller doesn’t want to pay any commissions. How can we go about submitting an offer to a seller without using our own broker?
Pricing Method: Real Estate value PLUS Cash Flow
From “Ask Kit!”:
Q: If I can figure the real estate value of the building and I know the cash flow of the business ..How do I add the value of the Established, successful B&B that I would like to purchase?
Are Prices Fixed or Negotiable?
From “Ask Kit!”:
Q: Are inn’s generally negotiable like houses are on the selling price or is it pretty much “firm” on what is being offered?