From “Ask Kit!”:
Q: I enjoyed your website, lots of information for people thinking about buying a B&B. We are selling our B&B and have found very little on the internet regarding selling B&B properties. We have had four showings in the past 5 months and are having a difficult time finding qualified buyers. We seem to attract those dreaming of the B&B lifestyle with little knowledge about what it takes to be successful or even if they can afford to do it. Most have unrealistic expectations regarding income and occupancy.
Any advice to those of us selling??
A: You’ll note, first of all, that I added a category for Selling A B&B so sellers and agents have a forum for their questions and wisdom. Secondly, I hear your frustration but don’t hear a specific question I can address, so I’ll give it my best and we’ll see what happens.
Selling a B&B can be frustrating. You have created a good business, hired professionals to market it for you, and now you are faced with a slow response. The burning question is where the qualified buyers are. I can tell you there are frustrated buyers out there looking for “qualified inns”. The challenge is to get the two together.
Here is some food for thought:
* Have you priced the B&B “correctly” and have you shown the buyer how the purchase can work for them?
* Will the new owner have a way of recouping their investment by increasing room rates or the occupancy rate, or by adding rooms?
* Are the owner’s quarters desirable?
* Are you getting the word out to enough people?
* Is the B&B a turnkey sale? Will the inn stay furnished they way you have it now or will the buyer have to buy more furniture?
* What condition is the B&B in? Good or needs work? Are the sheets and towels in new-like condition?
* How strong is the business and the potential?
* Is the B&B dated and needs sprucing up?
The average time for selling a bed and breakfast is three years. Generally I have found B&Bs that are priced well for their location, condition, and income, sell quickly. Though one of my last listings seemed priced perfectly and still took three to four years to sell. When I was new in real estate my broker always said that anything will sell if it’s priced correctly; the challenge is finding the correct price.
I think if you keep doing what you have been doing [I have the advantage here, knowing what you have done] that your buyer will come along. Feel free to post here what you are selling. Maybe your buyer is on this blog.