So we made our first offer...

Bed & Breakfast / Short Term Rental Host Forum

Help Support Bed & Breakfast / Short Term Rental Host Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.

flyingace71

Well-known member
Joined
Sep 10, 2018
Messages
63
Reaction score
3
Our broker called to let us know last friday that someone else (3rd party) was making an offer on the inn we are trying to buy, so we got our offer in on the same day as well. When he saw the $$ of our offer, he told us (without feeling he was being unethical) that our offer was appropriate and reasonable, the other was a joke in comparison.
Unfortunately, the counter offer came back pretty quickly with only a very little off the original asking price.
So we are re-grouping to make our 2nd offer next week, as per our financial guy to go silent until then.
Right now it just feels like everything is up in the air and that it might not ever happen for us.
Any positive vibes and advice you guys could send my way to encourage to persevere? Thanks all! :)
 
Staying silent for a bit sounds like a good ploy, don't be tempted to over-step your budget/business plan though. I've seen too many people over-stretch themselves desperate for that "idyllic" lifestyle, it's tiring, relentless work and the added pressure of not meeting your mortgage payments can be unbearable.
Good luck.
 
flyingace71 said:
Right now it just feels like everything is up in the air and that it might not ever happen for us.
Don't know how positive my thoughts are, but my two cents worth anyway and a wish of good luck.
So much depends on your own position and the position of the seller.
When we purchased it never occurred to me to offer less than what was asked and offers on property we were selling ranged from low to laughable. It wasn't so much that I wouldn't negotiate, but was just a working guy, I had to pay off what I still owed and walk away with the needed down payment on the place we wanted to purchase.
I had no choice as I couldn't sell below a certain number and move forward with my plan. Eventually we borrowed against our property, rented it out, and that paid the loan on what we had borrowed. Lucky that the gamble worked. Only you know how badly you desire this specific property and if it is possible within your budget.
Do a better job than I did of checking out the income of the proposed purchase, we succeeded, but looking back a lot of luck was involved.
 
We made our offer just a few weeks after the sellers had made a significant reduction in their asking price. We offered full price. In retrospect, I suppose we should have come in just a little under it, but we thought it was a good value at the asking price.
 
Definitely "hold your water". Silence can be golden. My brother thought I was nuts when I refused to drop the price on out Illinois house by $1000 - especially when I told him it was the only offer. But I was not desparate to sell (I got the $1000).
We made an offer on a house that was rejected-THANK GOODNESS! IF this falls through (and if it is what you really want, may all go well - IF it works for you counter with another grand or two). But know this, there truly is a reason for everything and everything has a reason.
A few months after the first rejection, this house, which was not even on the market when we offered on the first one, came up on our last trip for the year. I walked in and the house said- stop looking, I am yours. It was October, they were facing a winter of heating bills, and we had everything ready to go (no have to sell before I can buy). They took our first offer - about $5000 less than they were asking. A year later we opened a start-up B & B.
Had the first offer been accepted, we would not have been as happy as we were here. Here we met the people that made this a wonderful place for Himself to be, with all his interests met. Would not have happened in the other city - totally different culture area.
 
Thanks all! We made our second offer and went for broke at the top end of our budget but still $20K under their asking price and they accepted. Now we’re really scared! Ha ha! :)
Seriously, now it all comes down to the lawyers and accountants to sort out the financial and contract side of things. We are going to protect ourselves legally but we are hopeful for the best possible outcome.
This is an established and older Inn, so we knew going in that we’d be putting in a lot of sweat equity to bring it to the level we think it can excel.
So... onward and upward!
 
Thanks all! We made our second offer and went for broke at the top end of our budget but still $20K under their asking price and they accepted. Now we’re really scared! Ha ha! :)
Seriously, now it all comes down to the lawyers and accountants to sort out the financial and contract side of things. We are going to protect ourselves legally but we are hopeful for the best possible outcome.
This is an established and older Inn, so we knew going in that we’d be putting in a lot of sweat equity to bring it to the level we think it can excel.
So... onward and upward!.
Congrats, I hope it goes smoothly.
I remember that feeling of terror so well when I received the phone call to say our offer had been accepted. We'd talked about B&B for many years, spent 2 years looking for a property and all of a sudden it was real!!
 
Thanks all! We made our second offer and went for broke at the top end of our budget but still $20K under their asking price and they accepted. Now we’re really scared! Ha ha! :)
Seriously, now it all comes down to the lawyers and accountants to sort out the financial and contract side of things. We are going to protect ourselves legally but we are hopeful for the best possible outcome.
This is an established and older Inn, so we knew going in that we’d be putting in a lot of sweat equity to bring it to the level we think it can excel.
So... onward and upward!.
Congrats and good luck.
 
Thanks all! We made our second offer and went for broke at the top end of our budget but still $20K under their asking price and they accepted. Now we’re really scared! Ha ha! :)
Seriously, now it all comes down to the lawyers and accountants to sort out the financial and contract side of things. We are going to protect ourselves legally but we are hopeful for the best possible outcome.
This is an established and older Inn, so we knew going in that we’d be putting in a lot of sweat equity to bring it to the level we think it can excel.
So... onward and upward!.
flyingace71 said:
Now we’re really scared! Ha ha! :)
Wishing you the best, starting out is scary, but looking back it was an exciting adventure as well. Several weeks into our adventure we had only rented 4 or 5 rooms, yeah scary, wondered what I had stepped into, but after putting sweat into the place for over 25 years now we still love what we do and enjoy the guests.
Don't know how your payments will be set up (don't need to know), but we were fortunate that ours were set up for an annual payment since we began at a dead time of the year, it took the pressure off the quiet times and allowed us to make our payment at the end of the busier season before it was actually due.
 
Thanks all! We made our second offer and went for broke at the top end of our budget but still $20K under their asking price and they accepted. Now we’re really scared! Ha ha! :)
Seriously, now it all comes down to the lawyers and accountants to sort out the financial and contract side of things. We are going to protect ourselves legally but we are hopeful for the best possible outcome.
This is an established and older Inn, so we knew going in that we’d be putting in a lot of sweat equity to bring it to the level we think it can excel.
So... onward and upward!.
Fantastic. Welcome to the hardest job you will ever love. May you be as busy as you want to be.
 
Thanks all! We made our second offer and went for broke at the top end of our budget but still $20K under their asking price and they accepted. Now we’re really scared! Ha ha! :)
Seriously, now it all comes down to the lawyers and accountants to sort out the financial and contract side of things. We are going to protect ourselves legally but we are hopeful for the best possible outcome.
This is an established and older Inn, so we knew going in that we’d be putting in a lot of sweat equity to bring it to the level we think it can excel.
So... onward and upward!.
Congrats!
Word to the wise from the previously wised up - do not depend on lawyers and accountants to find all the details.
Now is when you have to get all the background you need:
  • Are there any liens on the property?
  • Do they sell gift certificates? How much money is outstanding?
  • Do they take deposits? How much is outstanding?
  • Are there donated gift certificates outstanding? (Your lawyer should request they stop donating free nights.)
  • Do they have employees? Will they stay on?
  • Do they have outstanding unemployment benefits you have to pay back to the state?
  • Who owns the domain name and the website?
  • How will you tell the repeat guests about the changeover?
  • Will you have a training period? How long?
  • Do you have a list of everything that conveys with the sale?
  • Will they continue to take reservations at full price?
I could go on.
 
Thanks all! We made our second offer and went for broke at the top end of our budget but still $20K under their asking price and they accepted. Now we’re really scared! Ha ha! :)
Seriously, now it all comes down to the lawyers and accountants to sort out the financial and contract side of things. We are going to protect ourselves legally but we are hopeful for the best possible outcome.
This is an established and older Inn, so we knew going in that we’d be putting in a lot of sweat equity to bring it to the level we think it can excel.
So... onward and upward!.
Sorry, duplicate.
 
Thanks all! We made our second offer and went for broke at the top end of our budget but still $20K under their asking price and they accepted. Now we’re really scared! Ha ha! :)
Seriously, now it all comes down to the lawyers and accountants to sort out the financial and contract side of things. We are going to protect ourselves legally but we are hopeful for the best possible outcome.
This is an established and older Inn, so we knew going in that we’d be putting in a lot of sweat equity to bring it to the level we think it can excel.
So... onward and upward!.
Congrats!
Word to the wise from the previously wised up - do not depend on lawyers and accountants to find all the details.
Now is when you have to get all the background you need:
  • Are there any liens on the property?
  • Do they sell gift certificates? How much money is outstanding?
  • Do they take deposits? How much is outstanding?
  • Are there donated gift certificates outstanding? (Your lawyer should request they stop donating free nights.)
  • Do they have employees? Will they stay on?
  • Do they have outstanding unemployment benefits you have to pay back to the state?
  • Who owns the domain name and the website?
  • How will you tell the repeat guests about the changeover?
  • Will you have a training period? How long?
  • Do you have a list of everything that conveys with the sale?
  • Will they continue to take reservations at full price?
I could go on.
.
That's an interesting list because.....DH and I are starting to think about moving on and I've been thinking about the mechanics of passing the business on to someone else. We've done B&B for 15 years now, DH is fed up with it and I'm getting there, plus he's 60 now and I'm not far behind and we don't want to do this the rest of our lives. Someone recently described B&B as a jail sentence and that struck a cord with me.
The only thing we haven't worked out is where do we go and what do we do. We both want a large garden (this one is too hilly to do much with) but I don't want to retire, I'd go batty being at home all day.
 
Thanks all! We made our second offer and went for broke at the top end of our budget but still $20K under their asking price and they accepted. Now we’re really scared! Ha ha! :)
Seriously, now it all comes down to the lawyers and accountants to sort out the financial and contract side of things. We are going to protect ourselves legally but we are hopeful for the best possible outcome.
This is an established and older Inn, so we knew going in that we’d be putting in a lot of sweat equity to bring it to the level we think it can excel.
So... onward and upward!.
Congrats!
Word to the wise from the previously wised up - do not depend on lawyers and accountants to find all the details.
Now is when you have to get all the background you need:
  • Are there any liens on the property?
  • Do they sell gift certificates? How much money is outstanding?
  • Do they take deposits? How much is outstanding?
  • Are there donated gift certificates outstanding? (Your lawyer should request they stop donating free nights.)
  • Do they have employees? Will they stay on?
  • Do they have outstanding unemployment benefits you have to pay back to the state?
  • Who owns the domain name and the website?
  • How will you tell the repeat guests about the changeover?
  • Will you have a training period? How long?
  • Do you have a list of everything that conveys with the sale?
  • Will they continue to take reservations at full price?
I could go on.
.
That's an interesting list because.....DH and I are starting to think about moving on and I've been thinking about the mechanics of passing the business on to someone else. We've done B&B for 15 years now, DH is fed up with it and I'm getting there, plus he's 60 now and I'm not far behind and we don't want to do this the rest of our lives. Someone recently described B&B as a jail sentence and that struck a cord with me.
The only thing we haven't worked out is where do we go and what do we do. We both want a large garden (this one is too hilly to do much with) but I don't want to retire, I'd go batty being at home all day.
.
Put together a book. All the phone numbers of all the trades you work with, what organizations you work with, who shows up at the door for inspections and when they usually show up.
 
Congratulations and welcome to the world of innkeeping!
Being an innkeeper is like being a new parent. In the next few weeks while you wait tor the closing and arrival of your "new child", take a vacation, visit friends, spend time with family and friends, etc for once you have it, you won't get time away without a babysitter (AKA innsitter). But the nice news is you can block all your rooms and leave it be for a little time which you can't with a baby. And when the time comes to part, you get all the money not the college!
shades_smile.gif

You are in for the story of your life. A totally new life is opening up to you. You will probably meet people from all over the world. You will learn new ways to clean, cook, and how to graciously end a conversion. I have served and slaved for two B&Bs so far. The House will became your best friend and worst enemy.
 
Thanks all! We made our second offer and went for broke at the top end of our budget but still $20K under their asking price and they accepted. Now we’re really scared! Ha ha! :)
Seriously, now it all comes down to the lawyers and accountants to sort out the financial and contract side of things. We are going to protect ourselves legally but we are hopeful for the best possible outcome.
This is an established and older Inn, so we knew going in that we’d be putting in a lot of sweat equity to bring it to the level we think it can excel.
So... onward and upward!.
Congrats!
Word to the wise from the previously wised up - do not depend on lawyers and accountants to find all the details.
Now is when you have to get all the background you need:
  • Are there any liens on the property?
  • Do they sell gift certificates? How much money is outstanding?
  • Do they take deposits? How much is outstanding?
  • Are there donated gift certificates outstanding? (Your lawyer should request they stop donating free nights.)
  • Do they have employees? Will they stay on?
  • Do they have outstanding unemployment benefits you have to pay back to the state?
  • Who owns the domain name and the website?
  • How will you tell the repeat guests about the changeover?
  • Will you have a training period? How long?
  • Do you have a list of everything that conveys with the sale?
  • Will they continue to take reservations at full price?
I could go on.
.
Maybe add to that:
Where are their advertising dollars spent (so you don't miss being in the upcoming: publications/print or online ads, chamber of commerce membership, etc...)
Is there a documented list of menu items they normally offer? (with recipes)
 
Thanks all! We made our second offer and went for broke at the top end of our budget but still $20K under their asking price and they accepted. Now we’re really scared! Ha ha! :)
Seriously, now it all comes down to the lawyers and accountants to sort out the financial and contract side of things. We are going to protect ourselves legally but we are hopeful for the best possible outcome.
This is an established and older Inn, so we knew going in that we’d be putting in a lot of sweat equity to bring it to the level we think it can excel.
So... onward and upward!.
Congrats!
Word to the wise from the previously wised up - do not depend on lawyers and accountants to find all the details.
Now is when you have to get all the background you need:
  • Are there any liens on the property?
  • Do they sell gift certificates? How much money is outstanding?
  • Do they take deposits? How much is outstanding?
  • Are there donated gift certificates outstanding? (Your lawyer should request they stop donating free nights.)
  • Do they have employees? Will they stay on?
  • Do they have outstanding unemployment benefits you have to pay back to the state?
  • Who owns the domain name and the website?
  • How will you tell the repeat guests about the changeover?
  • Will you have a training period? How long?
  • Do you have a list of everything that conveys with the sale?
  • Will they continue to take reservations at full price?
I could go on.
.
Maybe add to that:
Where are their advertising dollars spent (so you don't miss being in the upcoming: publications/print or online ads, chamber of commerce membership, etc...)
Is there a documented list of menu items they normally offer? (with recipes)
.
Have they kept records of previous guests? (for promos, specific marketing, etc...)
 
Thanks all! We made our second offer and went for broke at the top end of our budget but still $20K under their asking price and they accepted. Now we’re really scared! Ha ha! :)
Seriously, now it all comes down to the lawyers and accountants to sort out the financial and contract side of things. We are going to protect ourselves legally but we are hopeful for the best possible outcome.
This is an established and older Inn, so we knew going in that we’d be putting in a lot of sweat equity to bring it to the level we think it can excel.
So... onward and upward!.
Congrats!
Word to the wise from the previously wised up - do not depend on lawyers and accountants to find all the details.
Now is when you have to get all the background you need:
  • Are there any liens on the property?
  • Do they sell gift certificates? How much money is outstanding?
  • Do they take deposits? How much is outstanding?
  • Are there donated gift certificates outstanding? (Your lawyer should request they stop donating free nights.)
  • Do they have employees? Will they stay on?
  • Do they have outstanding unemployment benefits you have to pay back to the state?
  • Who owns the domain name and the website?
  • How will you tell the repeat guests about the changeover?
  • Will you have a training period? How long?
  • Do you have a list of everything that conveys with the sale?
  • Will they continue to take reservations at full price?
I could go on.
.
Great list Morticia! Some of these we have already addressed but you bring up even more good ones. Thanks!
Morticia said:
Congrats!
Word to the wise from the previously wised up - do not depend on lawyers and accountants to find all the details.
Now is when you have to get all the background you need:
  • Are there any liens on the property?
  • Do they sell gift certificates? How much money is outstanding?
  • Do they take deposits? How much is outstanding?
  • Are there donated gift certificates outstanding? (Your lawyer should request they stop donating free nights.)
  • Do they have employees? Will they stay on?
  • Do they have outstanding unemployment benefits you have to pay back to the state?
  • Who owns the domain name and the website?
  • How will you tell the repeat guests about the changeover?
  • Will you have a training period? How long?
  • Do you have a list of everything that conveys with the sale?
  • Will they continue to take reservations at full price?
I could go on.
 
Thanks all for your well wishing and funny responses. I read them to my wife this morning over breakfast and we had a good laugh... while saying “YIPE” inside thinking about all the things that are about to happen. In the meantime, we are working to get our house completed for the realty photos tomorrow and on the market Tuesday. We hope for a quick sale and that we can get on with our new life soon!
 
Thanks all! We made our second offer and went for broke at the top end of our budget but still $20K under their asking price and they accepted. Now we’re really scared! Ha ha! :)
Seriously, now it all comes down to the lawyers and accountants to sort out the financial and contract side of things. We are going to protect ourselves legally but we are hopeful for the best possible outcome.
This is an established and older Inn, so we knew going in that we’d be putting in a lot of sweat equity to bring it to the level we think it can excel.
So... onward and upward!.
Congrats!
Word to the wise from the previously wised up - do not depend on lawyers and accountants to find all the details.
Now is when you have to get all the background you need:
  • Are there any liens on the property?
  • Do they sell gift certificates? How much money is outstanding?
  • Do they take deposits? How much is outstanding?
  • Are there donated gift certificates outstanding? (Your lawyer should request they stop donating free nights.)
  • Do they have employees? Will they stay on?
  • Do they have outstanding unemployment benefits you have to pay back to the state?
  • Who owns the domain name and the website?
  • How will you tell the repeat guests about the changeover?
  • Will you have a training period? How long?
  • Do you have a list of everything that conveys with the sale?
  • Will they continue to take reservations at full price?
I could go on.
.
Maybe add to that:
Where are their advertising dollars spent (so you don't miss being in the upcoming: publications/print or online ads, chamber of commerce membership, etc...)
Is there a documented list of menu items they normally offer? (with recipes)
.
Northern Dreamer said:
Maybe add to that:
Where are their advertising dollars spent (so you don't miss being in the upcoming: publications/print or online ads, chamber of commerce membership, etc...)
Is there a documented list of menu items they normally offer? (with recipes)
Good ones! Our sellers let everything lapse. They kept telling us WE should pay for everything 3 months before the closing. What? Why are we paying for their advertising? What if the sale fell thru?
 
Back
Top