What's Happening with Inn Prices

Wow! It's not pretty out there! We just got back from our travels to the southern part of the state. We previewed several inns/resorts that we have advertised on our website, and concluded that prices are coming down (sometimes WAY down!) on hospitality properties. Take a look at these:

http://www.innmatchmakers.com/prp/190.html (reduced over $400,000)

http://www.innmatchmakers.com/prp/153.html (reduced over $400,000)

http://www.innmatchmakers.com/prp/142.html (reduced $300,000)

http://www.innmatchmakers.com/prp/159.html (reduced $370,000)

http://www.innmatchmakers.com/prp/113.html (reduced $500,000)

http://www.innmatchmakers.com/prp/137.html (reduced over $300,000)

http://www.innmatchmakers.com/property.asp?strUnit=192 (reduced $500,000)

The lesson to be learned from this has to do with pricing. The initial listing price for a hospitality property should never be a number pulled out of the air. We always ask our new listing clients to have an appraisal done on their property. This step can save a ton of headaches down the road, and it certainly helps buyers understand how the price came to be.

Sadly, sometimes the news isn't good for sellers and was the case of a property we were asked to list this week. The owners found out that property values in their area have dropped precipitously, and their bed and breakfast is worth HALF of what they thought. They elected NOT to list at this time, and to wait for a better market. This of course, is always an option for owners who haven't entered the "burnout" stage yet. Saddened though we are, we've also saved ourselves, the owner, and any prospective buyers from future headaches.

Strike While the Iron is Hot!

I just got off the phone with a potential inn buyer who had his sights set on a property that appeared to be a perfect fit for him. A one-of-a-kind mountain lodge in a town outside of Rocky Mountain National Park, it's a place where this man has owned a cabin for over 35 years. In other words, it's a place he knows and loves well.

He's had his eye on the property for over two years, even stopping by to take a closer look. Now, he's on his way to the area next month and would like to see it. Finally. Well, guess what? There are two other offers pending on the property now so it's likely that he'll lose out on what would have been a match made in heaven. And, if he wants to move forward and make an offer, he's in a competitive situation, never a good place for a buyer to be in.

Amazingly, this happens often! It's almost as though a message is sent out into the cosmos that brings people out of the woodwork so that they can all bid on the same property.

The truth is, you never know when a property is going to get some action. When you're searching for a needle in a haystack, if the opportunity comes along, it's better to strike while the iron's hot! That way you'll avoid the disappointment that's sure to follow if that dream property of yours slips through your fingers because you thought it would sit on the market forever.

I HATE it when that happens!