How Do You Determine The Value Of A Bed & Breakfast For Purchase Or Sale?
When determining the sale price of a bed and breakfast, there are two types of value you must add together: the value of the property itself and the value of the income stream it provides. Of course, as with any business negotiation, the ultimate price will be what two parties agree it will be. However, evaluating several key figures will help set a beginning number on which to disagree. Determine the value of the house, outbuildings and land. If the property is still under a mortgage or other lien, it’s best to make the real estate purchase a separate deal from the sale of the business. In most cases, it’s worth it to spring for an appraiser to perform this step. Estimate the value of fixtures, furniture, appliances, vehicles and other major property that will change hands when you sell the business. Don’t bother tallying up the small things such as office supplies, cleaning supplies, towels and sheets. The total value of these is insignificant compared to the sale value of the compan
