B&B Brokers

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Edited to say "To do or not to do a B&B broker" we have many responses here.

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Highlands John's picture
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I get at least one letter a week like this. I got so fed up with one company that I kept all their letters (about 10), stuck "return to sender" stickers on them all and put them all in the post.

We have buyers in your area looking for an inn, there is high demand for...., we have a waiting list...... blah blah blah. Bin, bin, bin.

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Silverspoon's picture
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Why should any realtor sell your inn and not be compensated?  Makes sense to me from the realtor's point of view.  If they list and sell  your place they deserve to be compensated.

On the other hand, as an educated Buyer I would want to be aware that the realtor is not showing me all the available, suitable properties, so I would be hunting myself for "by owner" properties and not expect to pay any commission to any realtor I might be working with who did not show the property to me.  

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TheBeachHouse's picture
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No broker should be paid for showing a house.  But I can understand if they want to be paid for finding a buyer.   Most brokers in this area charge 6%.  All payable by the seller.  

If you list a house for sale by owner, most brokers in this area will not show it.   So you've lost a large chunk of the market of people represented by brokers.

I'd suggest you agree to payment only if the sale goes through.  Never for a showing!

And if you never want to pay a broker, of course, that is a choice.   You've been there and done that, and you make your choices the past experience and wisdom.

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05/22/2008

" ifyou prefer to sell your Inn yourself, we can certainly understand and will remove this showing from our clients list.

Sure go right ahead and do that!

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10/07/2008

Okay like all threads on this forum that quickly get convoluted, this post was about the broker who in the best interest of the aspiring client saying:

                    >>>If I was not willing to play she would not be willing to share those properties with her client, who may actually be suitable<<< THAT is what the thread is about.

Not how to buy or sell and inn and where JB is listing her place that is up for re-evaulation. Smiling Everyone here is always eager to help! I am commenting on the fact that she will "pull the listing" from her clients eyes if I don't agree to pay out. Not how much is fair and whether or not we should do it. 

 

JimBoone's picture
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12/18/2014

Person contacting you may not have a client at all, maybe nothing more than a means of getting you to list the property for her future benefit.

I've never been impressed with the efforts of sales people to sell me property (cars either), guess I'm not charming or rich.  Like Duff, I enjoy reading the ads and usually know what I want before contacting a sales person.  If I'm counting correctly I've purchased 9 properties over life, 4 of them "by owner", 6 or 7 of them at least partly owner financing.  The right person and right price is usually the answer.

Dumb idea I guess, but any chance you could find someone who would finance the property, that's the big battle for someone wanting to purchase.

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Generic's picture
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Actually, as a broker, she should just be honest that her fee is 3% for finding the property and they pay her fee for the work that she does or they can discuss it with the property they buy, but she should be doing the best for her client.

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Lee2014's picture
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12/11/2014

   I'll take the blame this time for going off in a bunny trail! sad  If someone is clearly looking, they will be on the internet as well and see your listing.  So be ready for someone to just show up!  Happy selling!  You do know what to do after you sell?  Innmate Road Trip!!!!!!  SO let's get the word out that there's a wonderful B&B for sale!

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Arks's picture
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JBloggs wrote:

This is a broker who said if one of his/her people comes over here then he/she gets 3%.

I guess I'm missing something. Not the first time! The one who sent the message to you said, "...if our buyer selects your Inn to purchase....Our compensation for this sale is 3% of the purchase price of the Inn."

So you only pay 3% if their buyer purchases your inn. How much would you pay a local agent? Where I live they get 7% to 10%, depending on the sale amount.

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She doesn't want to pay any fee that is why she is trying to sell it herself. Why should she pay 3% to a realtor just for sending a looker and knowing nothing about her place?

Lee2014's picture
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   Everywhere I look I see JB's place!!!  And its such a lovely place and have been taken well care of.  I love to look at houses and inns/B&Bs for sale as a hobby.  I know I'm strange!  My favorites for inns are innsforsale(dot) com, bbonline, and innshopper.  Aspirings, if you are looking for a place to buy in a certain location, please private message me, and I will be happy to email you ones I find that meet your list.  A good thought is to buy a place already an inn or B&B.  The price may be higher than a big house but it usually comes with furniture, website, a week to a month training, knowledge, goodwill, and a guest list to name a few.  A big house comes with none of that.  You will have to do all the paperwork to get it approved, have the neighbors sign papers to approve the new business, put in more bathrooms, buy furniture, etc to name a few.  You will probably spend more money and time in the end than if you just bought one already a B&B or Inn.  Just something to think about… so check out B&Bs For Sale under Innkeeper Forum.

Camge's picture
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09/27/2014

Gotta admit  I also love to look at B and B's for sale. WE bought a house that had been run as a boarding house since the 1920's . IT needed an incredible amount of work, but because of the location and the fact that it was grandfathered by code, it was worth it for us to buy and renovate it. We were so lose to buying an exisiting B and B in Maine. It would have been a lot easier, but in the end the location we chose was really worth it.

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Duff2014 wrote:

   Everywhere I look I see JB's place!!!  And its such a lovely place and have been taken well care of.  I love to look at houses and inns/B&Bs for sale as a hobby.  I know I'm strange!  My favorites for inns are innsforsale(dot) com, bbonline, and innshopper.  Aspirings, if you are looking for a place to buy in a certain location, please private message me, and I will be happy to email you ones I find that meet your list.  A good thought is to buy a place already an inn or B&B.  The price may be higher than a big house but it usually comes with furniture, website, a week to a month training, knowledge, goodwill, and a guest list to name a few.  A big house comes with none of that.  You will have to do all the paperwork to get it approved, have the neighbors sign papers to approve the new business, put in more bathrooms, buy furniture, etc to name a few.  You will probably spend more money and time in the end than if you just bought one already a B&B or Inn.  Just something to think about… so check out B&Bs For Sale under Innkeeper Forum.

You should copy & paste this into "B&Bs for Sale" as a new post!

Aussie Innkeeper's picture
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So where is your listing posted? How would someone who is looking to buy a B&B find you?

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05/22/2008

cryingHer listing is posted every where on line you can think of including here 

has been for years

Lee2014's picture
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   When my parents sold our house we grew up in, the people were with a realtor when they drove by our place with the sign for sale by owner.  They saw the other house with the realtor, went back to the realtor's office and got their own vehicle.  We pulled into our driveway from a gathering the day after we put up the sign and the people pulled in behind us and asked to see the place.  The next day they asked to have someone do a house check, and the next day they gave us an offer….  You can buy/sell without a realtor!

Aussie Innkeeper's picture
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I would think that the challenge with a 'local realtor' is that they are not specialists in B&B properties and won't have nearly the access to interested/qualified buyers that a B&B Broker would have. Isn't that worth something?

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07/23/2008

 We just met some folks who bought what used to be a B&B years ago a couple streets over, before we moved to town and opened ours. Their plan is to renovate it and turn it back into a B&B.They bought that place while ours was listed with a local broker. 

They told us, their realtor didn't even show them or tell them about our place, or they would have bought our place and saved themselves a ton of work! 

Thats our experience with local realtors. 

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05/22/2008

Surely if they were really looking to buy they would have seen your listing somewhere. I left no stone unturned when we were looking to buy a B&B 

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10/07/2008

Sunshine wrote:

 We just met some folks who bought what used to be a B&B years ago a couple streets over, before we moved to town and opened ours. Their plan is to renovate it and turn it back into a B&B.They bought that place while ours was listed with a local broker. 

They told us, their realtor didn't even show them or tell them about our place, or they would have bought our place and saved themselves a ton of work! 

Thats our experience with local realtors. 

Yep. Mmm hmmm

TheBeachHouse's picture
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That's sleazy.  

The realtor who represented us is notorious for her negotiation skills.  She's a shark. 

Morticia's picture
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Aussie Innkeeper wrote:

I would think that the challenge with a 'local realtor' is that they are not specialists in B&B properties and won't have nearly the access to interested/qualified buyers that a B&B Broker would have. Isn't that worth something?

It's worth something, definitely. I think what grits is what happens with these brokers with lookers who have 'a week to look around':

  • They use your listing and your time to show lookers what they don't want, ie - something the broker isn't making big bucks on.
  • No matter how interested the buyer is, they scare them out of it because it's not their listing.
  • Just the tone of the email (we have a live one here, we could bring them over or you could keep trying to sell on your own) is grating.

I've seen this game played many times in the past couple of years where buyers were either told there was nothing else for sale (when 3 properties within walking distance were for sale), or, show this property that needs a little TLC and make it sound like a money pit where this property at $700,000 more is  move in ready! (Not that jb's property needs anything done, they are excellent owners!)

They're not working in the best interest of the client if they don't show them what they want to look at, just what the broker wants to sell.

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Aussie Innkeeper wrote:

I would think that the challenge with a 'local realtor' is that they are not specialists in B&B properties and won't have nearly the access to interested/qualified buyers that a B&B Broker would have. Isn't that worth something?

But this is not a listing with a broker. They do not have us on their website.

This is a broker who said if one of his/her people comes over here then he/she gets 3%. So no, not worth MY 3%. The buyer can give them all the % they want. 

And just for background/history, we had a broker who didn't do anything other than show up at the closing to get his money when we bought this place. Any questions we had he told me to contact the seller. In fact, he didn't even fact check and the seller lied, as many have found has happened to them. He got his % from both on the deal. I am not disclosing his name here either. Not the same one as the orig post.

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10/04/2015

if it was 3% on an a complete sale and you had the money in the bank and off to other things maybe - but certainly not on we will send someone round to have a look - lol

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05/22/2008

Oh my I don't want to venture a guess who this was..but am suspicious Eye-wink

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09/26/2011

And it never has occurred to them that by now you've already been hit by multiple editions of this kind of 'advice'.   

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