Frequently Asked Questions (FAQ)
Read the Answers To Our Frequently Asked Questions:
We limit our area to the area we are familiar with. Many of my competitors serve 50 states. I do not know how they do this. Each Inn is different. Each state is different! (especially with the Real Estate laws in each state). I service only the states where I have a Real Estate License.
According to Real Estate laws in virtually every state, to be paid a commission, you must have a real estate license. I have decided to represent buyers and sellers only in states where I am licensed. Many of my good friends do not!
I was first licensed in Real Estate in 1972. My wife, Jane, and I purchased our first Bed & Breakfast Inn, in 1997.
Historic properties in Western North Carolina; Historic Savannah, GA; Historic Properties in Charleston; and properties in between.
I live and breathe these properties! I enjoy connecting the right buyers to their ideal B&B properties for sale. Moreover, I love helping those transitioning out of innkeeping, onto the next phase of their lives.
I always ask the sellers what they are looking for when they decide to sell their property. Then I tell them what I think they should list a property for. Then we come to an agreement. Sometimes my price is greater than what the seller wanted. Please note this happens "sometimes".
(Location, Location, Location). This is more important with Hospitality Properties than for Residential Properties. A property must be located where people want to visit. Most of the time a location is chosen, then the individual property is selected. The lending institutions require gross Revenue & Net Operating Income. The overall condition of the inn is significant. No one wants to stay in a dump, no matter how great the location is!
The process can take as little as 30 days, on up to 2 years.
We advertise in all the leading places that specifically exist to promote Bed & Breakfast properties. We are members of the Association of Lodging ALP & Select Registry. I strongly recommend these to all current and aspiring Innkeepers. We also use Homes by Design, magazine, and naturally the MLS of each state we are licensed in.
We work with Realtors and Brokers, as well as consultants who are not licensed brokers. Naturally, a consultant can not be paid as a Realtor or Broker, but compensated as a consultant.
Deals fall apart all the time. The best way to ensure a deal does not fall apart is to ensure all the initial details are addressed up front.
Nothing is required. Especially with the increase in VRBO & Air B&Bs. When and if the price is the most important issue, maybe VRBO & or Air B&Bs should be the route one takes. This is a decision that can change as your market changes.
Most all B & B are sold furnished.
Yes, we recommend two lists: 1) Items that convey and 2) Items that do not convey. The second list is more important than the first list.
As long as the Inn has not been on the market at the same price for a year, I do not think it is an issue. However, if a property has been on the market for 36 months and at the same price, I would think there is an issue, and it may be the price.
Around 5% of the time owners offer financing. With the current market, this has increased to 25% + due to the high interest rates. I am not a big fan of 2nd mortgages. Big reason is if you have a 2nd mortgage and the buyer stops making payments, and you take the buyer to court and win the lawsuit, all you have is a 2nd mortgage.
Age is normally a good thing for an Inn, because one of the "key" issues with most Bed & Breakfast properties is the historic significance of the property.
All of these are material facts and should be addressed.
The percentage of OTA continues to grow. Somewhere between 35-50% of folks who stay at a Bed & Breakfast Inn use OTAs. If you as an Innkeeper do not use an OTA, then you are missing an opportunity for 35-50% of the market!
Having a reservation system is a must for innkeepers.
The buyer takes over the payments of the seller. Most B & B Loans cannot be assumed!
A survey indicates the boundary of the property. It's a good idea to have one! It is a plus to have one, especially if you plan a renovation or expansion in years to come.