When you are searching for a bed and breakfast for sale, you should practice due diligence.
You will rarely find a seller who will tell about hidden damages or defects in his establishment.
You need to make an educated decision when negotiating a sale.
Hire a home inspector or get a friend in the real estate business to accompany you when you inspect the property.
Here are some tips that should help you make a better decision about which B&B to buy.
1.
One of the first things you should watch out for when you do a pre-sale inspections at a bed and breakfast for sale, is to look for termites, especially if the structure is made of wood.
Termites can reside in or out of the building, so check for termites in the exterior too.
Concrete structures will present less termite problems.
Other things you should check are cabinets and other fixtures.
Are the hinges all secure or do the doors look like they will come off the door frame when you open it? 2.
Open faucets and showers and check the water pressure.
See if the toilets flush properly and if the showers still produce a good stream of water.
See if old tile stains can still be removed.
Bathrooms can be very expensive to renovate.
Switch lights in all rooms on and off and have an electrician check electrical sockets.
Take all defects or structural damage into consideration when you calculate your offering price for negotiations.
3.
You may want to hire an accountant to check the books of the bed and breakfast for sale.
Unless you are an accountant yourself, you can save yourself some stress by getting a pro who can spot inconsistencies right away.
Don't just review financial records and balance sheets, delve deeper and check past tax returns too.
By checking his books and tax returns, you can tell how profitable his B&B is.
4.
Check the zoning laws in the area and find out if the crime rate in the neighborhood is low.
You don't know if the owner is offering his bed and breakfast for sale because of some problems regarding crime, vandalism, or theft in the neighborhood; or if he is having problems running the business with unfriendly zoning laws.
If you are not legal savvy, ask a lawyer to review the zoning laws.
You will need a lawyer anyway when you finalize the deal.
5.
You will most likely be living at the inn if you will be running it yourself.
Choose a place that has a lot of travelers coming in and out like tourist areas, near the fringes of the business district, near national parks and major amusement centers.
Some travelers though prefer places off the beaten track to get some peace and quiet.
Being in a high traffic area will definitely raise your income potential.
6.
If you don't have the time or energy to look for that perfect bed and breakfast for sale, a real estate broker that specializes in commercial properties and hotels could save you a lot of trouble.
The drawback is, brokers will get a commission from the seller and you may not be able to negotiate for a much cheaper price.
Even if you will get a broker to help you look for a B&B, you should also do some searching yourself.
Some sellers like to deal with buyers directly.
Write down numbers, prices, and list structural damages you can use to negotiate for a cheaper price.
Don't fall in love with the first beautiful bed and breakfast for sale.
Looks can be deceiving.
There could be hidden damages or negative reasons why the owner is selling the business.
Take your time and don't rush into buying a B&B right away.
It would be a good idea to visit your selected choices more than ones so you can see things you may have missed before.