|By Pattie Detwiler | November 13, 2014 at 01:05 PM EST|
WHAT BUYERS WANT TO KNOW
One of the most important thing buyers want to know is what your verified income and expenses are. Sounds personal, but you can't make a business decision without the information. How much income is room revenue, private parties, up sales, weddings, etc. What have the expenses been for the past few years. What is your occupancy. What is your Net Operating Income? A major concern of buyers is will the Inn cash flow when I add a mortgage payment to the bottom line. How much are taxes and insurance on the property.
Is your business licensing up to date. Do you have a Bed and Breakfast License and Restaurant License? Do you have an Alcohol License? They want to know which licenses are assumable and which are not.
Are all items being purchased. If not, make a list of items that will not be transferring with the sale. Furniture, Fixtures, Equipment? What is the Property Value? What is the FFE Value? What is the Business Value?
Have your paperwork ready to share with your Realtor. Buyers are evaluating the purchase price and what's included on what is verifiable, not what could be if someone else put in more work.
When a Seller says the B&B is a Turnkey Operation, what does that mean to the buyer? It simply means a buyer can step into your property tomorrow and run it without any interruption, repairs, all licenses are up to date and the guest bookings are solid.