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Less B&B's for sale in your area?

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toddburme

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Might just be time of the year or something but we have a lot less B&B's for sale in Minnesota right now. On the big sites, I could only find 2 which is way down from our normal 8-10 or so.
 

EmptyNest

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It is timing for sure and with the economy, I am thinking most places don't think it is probably worth listing as there are not many real buyers out there right now. Though one actually has sold here, but been on the market for 3 years.
 

Joey Camb

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we have a lot on but the listing in the UK is free till it sells the Cavendish has been up for sale about 2 years now as has the Kingsway nothing is shifting cos no one has any money.
We are interested in buying next door which is joined on to us and was 2 houses knocked into one as we are. we can't afford to buy the whole lot but she might split it back into 2 for us and then it would be something to think about.
 

NW Natterbug

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There are now 7 operating in our county, with another due to open in the next year or so. One went into foreclosure and closed over a year ago, One has been on the market for over 5 years, 4bd (2 with private bath), started at 700 thou, down to 400, and still sitting. One listed some months ago at 1.3 mil (4 beds, market targeted more to a site for weddings, they do well at it)
 

Madeleine

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I just went and had a look and the numbers are right up there for around here. Probably 50+ across all the sites.
 

gillumhouse

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I was planning to put mine on the market but that is on hold until DH dies (too much DH on the OQ) and he does not like change, especially now.
WHEN I get to do it, I plan to ask the price of the house and throw in the turnkey B & B - but will require it remain a B & B at least 2 years if that will be a legal stipulation. I will take only my personal stuff and whatever the new owners do not want.
 

JBloggs

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Perhaps they don't want to keep paying for the for sale listings. Some of them are VERY HIGH, like bedandbreakfast.com, and bedandbreakfastforsale.com Like ourselves we are on a couple listings only since we have to pay for them every 6 months, with ZERO interest, meaning zero inquiries! Yes, zero. If we do have an inquiry (which is more rare now for most of those listing) it is someone who has been layed off, has no money and thinks they can lease the inn. 10 to 1 are those, not that those are even coming through of late.
 

toddburme

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We were looking at next spring. Not sure if we will have any type of market by then or not. The real estate market overall is pretty steady here. It is low priced obviously but there is activity.
The interesting part is that we obviously won't have 3 years of numbers or anything really great to show someone. So we would be selling as a value against other B&B sales in our area. Lowest priced 5 br B&B in the area with decent bookings blah blah blah. But with the residential mortgage market closed up it might not be worth the time to bother. I know many people bought B&B's with residential mortgages in the 2000's and no one batted an eye. Now I keep hearing we are a commercial property. Big difference in the terms and interest rate.
 

Madeleine

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We were looking at next spring. Not sure if we will have any type of market by then or not. The real estate market overall is pretty steady here. It is low priced obviously but there is activity.
The interesting part is that we obviously won't have 3 years of numbers or anything really great to show someone. So we would be selling as a value against other B&B sales in our area. Lowest priced 5 br B&B in the area with decent bookings blah blah blah. But with the residential mortgage market closed up it might not be worth the time to bother. I know many people bought B&B's with residential mortgages in the 2000's and no one batted an eye. Now I keep hearing we are a commercial property. Big difference in the terms and interest rate..
If someone can come in with a big enough down payment and show external employment, they can probably get a residential mortgage.
 

toddburme

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We were looking at next spring. Not sure if we will have any type of market by then or not. The real estate market overall is pretty steady here. It is low priced obviously but there is activity.
The interesting part is that we obviously won't have 3 years of numbers or anything really great to show someone. So we would be selling as a value against other B&B sales in our area. Lowest priced 5 br B&B in the area with decent bookings blah blah blah. But with the residential mortgage market closed up it might not be worth the time to bother. I know many people bought B&B's with residential mortgages in the 2000's and no one batted an eye. Now I keep hearing we are a commercial property. Big difference in the terms and interest rate..
If someone can come in with a big enough down payment and show external employment, they can probably get a residential mortgage.
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Madeleine said:
If someone can come in with a big enough down payment and show external employment, they can probably get a residential mortgage.
Not sure of this. I think that the current underwriting is going to push it to commercial.
 

Aussie Innkeeper

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At least a dozen for sale here in the County. Some have been on the market for 5 years. I know because they were for sale when we were looking in 2006-07. The one we bought was only on the market for 6 months when we first looked at it.
 

JBloggs

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We were looking at next spring. Not sure if we will have any type of market by then or not. The real estate market overall is pretty steady here. It is low priced obviously but there is activity.
The interesting part is that we obviously won't have 3 years of numbers or anything really great to show someone. So we would be selling as a value against other B&B sales in our area. Lowest priced 5 br B&B in the area with decent bookings blah blah blah. But with the residential mortgage market closed up it might not be worth the time to bother. I know many people bought B&B's with residential mortgages in the 2000's and no one batted an eye. Now I keep hearing we are a commercial property. Big difference in the terms and interest rate..
If you sell it as a business they will want a commercial loan. If you don't have the #'s to back up the business portion of the sale you will only be selling the real estate. Commercial loans are near impossible to get, even with a heavy down payment and numbers to match.
 

JBloggs

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Many take them off and then add them again so they show up as "NEW"!! I see that on a few, quite often.
 

toddburme

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Well it will be interesting. I know when I was looking for a loan earlier this year, the residential people did not want to touch it. I ended up getting a commercial loan. The good news is that the local bank is pretty open to talking so that might be the best option for a buyer too.
It will also help that lots of B&B's have taken theirs off unless they all come back in May. This is the joy of real estate.
 

JBloggs

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Well it will be interesting. I know when I was looking for a loan earlier this year, the residential people did not want to touch it. I ended up getting a commercial loan. The good news is that the local bank is pretty open to talking so that might be the best option for a buyer too.
It will also help that lots of B&B's have taken theirs off unless they all come back in May. This is the joy of real estate..
toddburme said:
Well it will be interesting. I know when I was looking for a loan earlier this year, the residential people did not want to touch it. I ended up getting a commercial loan. The good news is that the local bank is pretty open to talking so that might be the best option for a buyer too.
It will also help that lots of B&B's have taken theirs off unless they all come back in May. This is the joy of real estate.
Todd, may I suggest that you add that to your listing, local bank easy to work with or however you want to word it. That is a huge barrier to most people, the bank needs to be IN THE AREA of the B&B, not where they currently live. (I say this from experience from one coast to the other). That is a huge boon to share that, esp if it is the bank that knows you and your business!
 

toddburme

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Thanks will do. We are enjoying the business and it is going well. So if we have to stay another year or two, it is not a big deal. Being the silent partner, I am looking for the door while the working partner is still happy as it gets a lot harder when they want out. So doing a little planning already.
 
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