What do you, as a buyer, need to take into consideration before you make an offer to buy a bed and breakfast? Use due diligence when examining the property for damage and examining financial records. Hire a home inspector to conduct pre-sale inspections and verify zoning. Develop a plan for making an offer and negotiating a good deal and be prepared for negotiations to take time. Do plenty of research before going into negotiations to insure that you are making good, informed decisions.
Examine financial records. Consider hiring an accountant who is familiar with business accounting, preferably bed and breakfast accounting, to review not just the financial records but previous tax returns as well. Know what you are getting, as best you can, before making a purchase.
Look into any existing plans for the areas surrounding the property. Check the local laws governing the property to make sure you will be able to run your bed and breakfast to your satisfaction.
Understand your responsibilities as a buyer to use due diligence. Inspect the property not only for problems like termites but also for wear and tear that may go beyond what you are willing to accept. If there are repairs on the property that you will need to make, determine if these are things you are willing to put the time and money into. Check that the various mechanical and electrical systems are working appropriately. Keep in mind that you are not buying a new home and that not every seller will necessarily maintain properties to your satisfaction.
Be prepared to negotiate. Decide how you want to negotiate before making an offer. If you make a low-ball offer, it may be rejected without consideration or a counter-offer. A downside to this is that the seller may then look at your next offer as holding back. On the other side, if you initially present your best offer, you won't have room to negotiate. Be prepared to counter-offer to reach a reasonable compromise. Figuring out what the seller's motivation is in selling their B&B will also help with negotiations.
An article article in Forbes magazine lists things to consider before making an offer on a high-priced home. Forbes suggests to look for termites (conduct a due diligence inspection), consider what is next door, prepare to negotiate, and take it easy. These are useful things to consider when preparing to make an offer on a bed and breakfast as well. Adapted to the B&B industry, there are a few changes though
Buying a bed and breakfast can be a long, slow process. Take classes, there are lots around the country to choose from, hire a consultant to guide you through specific issues, and even attend B&B conferences. Don't let looks fool you. This is a challenging career and lifestyle. Get prepared so you can make the most of the new, exciting, and challenging business you are about to undertake.
Be patient. It can take months, or even years, to find a bed and breakfast that is right for you. Take plenty of notes and pictures, with the seller's permission. Be flexible and most of all, have fun.
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