What do I need to know when selling my Guesthouse or Bed and Breakfast?

Are you doing the right thing at the right time when selling your Guesthouse? Many owners spend years building a reputable business only to regret selling that business after the transaction has been completed.

On Insurance Chat we have shared some advice by Colleen Seabell from Guesthousesale.com. We would also like to share her advice to the potential seller of a Guesthouse, Boutique Hotel and Bed and Breakfast.

What are the major pitfalls you have found in your experience for the potential seller of a guesthouse?

Sometimes sellers have sold in haste and do not check what financial payment will become due.  An example would be capital gains tax.  If they consult with a tax expert before selling, the potential pitfalls become apparent and the tax expert will advise them correctly.

Also what sometimes happens is the sellers have become completely attached to their guesthouse and when they sell they regret selling.  Especially when the buyer moves in and starts ripping walls down or ripping plants out that you work for years on establishing.  Once you have sold, move on and don’t go back.

Another big potential pitfall for sellers is that they accept an offer and think that they have sold only to find out that the banks do not give funding!  This is a big disappointment to a seller that has moved on in his/her head.  I advise all sellers to put a 72 Hour meet or beat clause into any offer that is subject to finance so that if you do get another offer that is not subject to finance you can accept it and are not tied down for the period stipulated on the offer.

Also do not stop marketing your property for sale if it is subject to finance.  Probably close to 90% of the offers that are subject to finance do not work.

To contact Colleen Seabell visit www.guesthousesale.com

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