Seller asking for 100k on top of asking price for STR business

[Joon Kim]

Looking to purchase my first property for STR and looking at an existing STR business.

The seller is asking for 100k on top of the asking price for basically the right to continue using the property as a STR as well as any furnishings in the house.

Is this a typical arrangement for purchasing a pre existing STR? I can understand a side arrangement for furniture that wont be covered by financing but the rest sounds pretty questionable. They operate strictly on VRBO and claim that they can transfer the account and any listings to me. The account has about 30 positive reviews with a annual revenue of about 86k. I havent really looked into the VRBO TOS to see if this is even kosher. The exact language is below:

"Please note this property price is reflective of
a residential unit and not short-term rental. Should the purchaser
like to continue utilizing this property as a Short-Term Rental the
purchaser will agree to pay $100,000 for the business use,
furnishings, and digital media. If property is purchased without
purchasing the business, restriction will be placed on the deed at
settlement to not allow new owners to operate this lodge as a
short-term rental for a period of two years."

[John Underwood]

Quote from @Joon Kim:

Looking to purchase my first property for STR and looking at an existing STR business.

The seller is asking for 100k on top of the asking price for basically the right to continue using the property as a STR as well as any furnishings in the house.

Is this a typical arrangement for purchasing a pre existing STR? I can understand a side arrangement for furniture that wont be covered by financing but the rest sounds pretty questionable. They operate strictly on VRBO and claim that they can transfer the account and any listings to me. The account has about 30 positive reviews with a annual revenue of about 86k. I havent really looked into the VRBO TOS to see if this is even kosher. The exact language is below:

"Please note this property price is reflective of
a residential unit and not short-term rental. Should the purchaser
like to continue utilizing this property as a Short-Term Rental the
purchaser will agree to pay $100,000 for the business use,
furnishings, and digital media. If property is purchased without
purchasing the business, restriction will be placed on the deed at
settlement to not allow new owners to operate this lodge as a
short-term rental for a period of two years."

Do the numbers work for you at this higher number? Are you willing to pay it?

 This is still a residential property and must appraise. 

If you want to move forward put in an appraisal contingency.

If this doesn't work then just find another similar property in the area and make it a STR yourself instead of paying a premium.

This person sounds like a jerk and I personally would not buy their house.

Also ask an attorney if this restriction is enforceable.