Another Competitor Up For Sale

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PhineasSwann's picture
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The 11-room Inn next-door has been for sale for 8 months now. They've lowered their asking price from the ridiculous $1.1 million to the still-ridiculous $900k. Forget the $100k-per-room formula, it doesn't work in a remote, thin market like ours and it doesn't work in the age of Air. 

Today I found out another competitor, who has a 7 cabin/suite operation, is listing for sale too, initially at a insane $750,000. 

They'll be on the market for a while, until either of them decides to cut their losses. But I can't decide whether to be pleased that we're taking so much market share that they both want to get out, or be scared that Air is killing them and I'm next. 

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Generic's picture
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We always valued this as a house and never as a business. When we sold our last property, we gifted them the business. So, no over inflated version of the value in our minds. 

I had a lot more competition when I started and while we have seen the effects of the changes, we have managed to hold our own as the competition dwindles.

Then again, I have seen what they are buying from Air, and I'm not impressed. What has certainly happened is that not only have prices gone down, but so has quality.... really! 

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gillumhouse's picture
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I also plan to sell for the markety price of the house. they get everything except my personal stuff if they agree in writing to operate as a B & B for at least 3 years. Do not want them buried in debt. Want a B & B in Shinnston.

gillumhouse's picture
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I have weathered ups and downs over the last almost 23 years. Will hang in a while longer - I hope. I have made changes in what I do and how I market over the years. Just have to keep evolving.

OnTheShore's picture
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I don't know about you guys, but WE are really just a real-estate holding company. The value of the property we sit on, for conversion to a couple of waterfront mcmansions, far exceeds the value of our modest little business....

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Silverspoon's picture
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Yes, in our location the property, as a private residence, is worth more than the business could ever be.  We feel very fortunate to have been able to grow our business as a B+B for the last 30 years before Air took over the market.  Now that we are winding down, the hit on our income from OTAs is not so much of an issue.  We don't plan to sell anytime soon but if/when we do, we will market as an ocean-view,  single-family home with guest house. Anyone wishing to continue 

We are still waiting for the state to regulate the STR vacation home market...hoping that many second homeowners who use Air, VRBO etc will drop out rather than have to tow the mark on requirements.  

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JimBoone's picture
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12/18/2014

Probably true of many, while we are not waterfront, property in general has gone up so much over the years I'm not sure our place would be practical if I had to purchase on today's market, perhaps that contributes to the issue with "air" rentals in that the property market squeezes the small mom & pop business.

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gillumhouse's picture
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JimBoone wrote:

Probably true of many, while we are not waterfront, property in general has gone up so much over the years I'm not sure our place would be practical if I had to purchase on today's market, perhaps that contributes to the issue with "air" rentals in that the property market squeezes the small mom & pop business.

It also squeezes the locals looking for a place to rent to live in long term. They are all now on STR or whole house Air.

JimBoone's picture
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gillumhouse wrote:

It also squeezes the locals looking for a place to rent to live in long term. They are all now on STR or whole house Air.

Unfortunately I wonder if some so called long term renters help to make renting as an STR look favorable to the landlord. Long ago had several places that we rented out, generally had nice folks, but that went downhill when we moved away. Family member manages a complex, not without problems, but a large company does have systems in place, another family member rents just one house, long term rental, yet seems like a number of folks only remain long enough to make a mess before moving on, if I lived near the place I'm afraid I'd be suggesting the STR path, at least with our type business guests come and go before they can do too much damage.

gillumhouse's picture
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Unfortunately, long-distance rentals create the same situation as STR with no owner present. I truly believe the majority of long term renters are good, it all depends on screening and making the rent high enough to discourage the low-lifes, just as it is with our rates.

JimBoone's picture
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In our case there was still family available a block away to look after our interests, but times and places change and laws/rules are mostly in place to protect the tenant since landlords are seen as big city slumlords rather than an individual owner merely trying to cover their banknote while still dipping into their own pocket for taxes, insurance and repairs, but you own the house so tenant sees you as rich and oppressive.

In the case of family that is still renting, they live next door to the rental, but the town has grown from a sleeply country town to "uptown" and people are different. They are also where I was 30 years ago, just trying to cover the house payment, but not in a position to spend on major upgrades in hopes of finding an upgraded tenant.

Years ago I felt Maxine was good at picking tenants, not so much asking questions, just listening to their comments as they looked at the house, but today you really need to be a corporation with a staff less you accidentally say or ask something that might be seen as offending someone.

gillumhouse's picture
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Years ago I felt Maxine was good at picking tenants, not so much asking questions, just listening to their comments as they looked at the house, but today you really need to be a corporation with a staff less you accidentally say or ask something that might be seen as offending someone.

Ain't that truth!!

Arks's picture
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I guess it's futile to think the government is going to step in and return everything to "normal". Things change. Who would have dreamed that Kodak and Sears would go bankrupt.

All we can do is strive to be the best at what we do, and keep telling people we're the best, and a bargain considering what we offer. You don't have to get all the business. Just those looking for something better.

I hope.

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Tom
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Amen, brother!

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