We read all of the posts replying to "looking for a B&B that can cash flow" in hopes of getting some basis for pricing a B&B for sale. We want to sell our B&B; but we are not expecting to get an inflated, overpriced sale. We finally decided to use a recent appraised value of the real estate plus one year's B&B income. The price would include all business assets, including furnishings, website, etc. Does this approach seem reasonable?

Our B&B fits the location, location, location criteria Sandy Soule detailed in her recent message; great little restaurants and antique shops within two blocks, midway between Boston and New York City just 90 miles away, lots of returning parents to the private prepatory boarding school nearby, even a national events theatre just a mile away.
We feel really blessed with a wonderful property in a great little town. It will be missed, but we are missing our grandchildren more.
Any interested buyers can check our website: www.bedandbreakfastwallingford.com

As what looks like a busy six-room Inn (I peeked at your availability), I would heartily recommend that you speak to an experienced Inn broker that's familiar with your area.  He/she would have a better idea of what a reasonable price would be.

Smaller Inns like mine would generally sell for real estate value alone.  Large Inns sell as commercial establishments and sale prices reflect furnishings, customer goodwill, etc.  An Inn your size falls into a gray area somewhere between the two. 

If you're willing to price it reasonably (99% of Innkeepers don't), a broker can get you more faster and can market it better directly to aspiring Innkeepers.  Plus, an Inn broker is familiar with the ins and outs of what selling an Inn entails and is better equipped to handle the paperwork involved.  Whatever you pay in commissions is well worth it.

Good Luck, and keep us posted...there are alot of Innkeepers wondering the same thing!

Wendy Keene
Applesauce Inn
Bellaire, MI

Thanks for your input Wendy.
We've taken your suggestion to heart, at least part of it. Even though real estate values in our town have continued to increase, we cannot escape the national real estate news.
We reduced our asking price for the B&B to $699,900; about $25,000 over what we are asking for the house. This is less than the cost to replace the business furnishings, etc. being transferred. It is definitely not the best price we would get in a good market; but it certainly is reasonable.

We are not marketing through a broker because we do not want the added pressure from an agent to show the house at a day's notice (or less); and often to someone who really cannot afford the property to start with. We want to make sure any potential buyer has a pre-authorization letter from a lender, not just the real estate agent's word that they are qualified. We've bought and sold enough properties in the past and know this happens far too often.
We will keep you posted on our progress.
Becky Barrett
The Wallingford Victorian B&B
Wallingford, CT

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Innkeep

I understand your concerns about real estate agents.  That being said, an experienced Inn Broker deals only with Inn sales, is sensitive to the Innkeeper's needs (in fact works for you, not for the buyer).  They are adept at making sure no one wastes your time or theirs by showing the Inn to someone that can't afford it or isn't serious about buying.

Just a thought!

Wendy