All Forum Posts by: Michael Kugler

Standard commercial

I did a quick Google browse and the numbers are all over the place. Generally speaking we pay cash for everything but on this one we may move forward with doing a loan - at least initially to secure the property. Would like to hear from people on interest rates and get their feedback.

I would never and I mean never suggest or recommend a person ever attempt anything electrical unless they were certified in that industry. The moment you cross over to life and limb is where you should hire in professionals in my opinion. We are the same way when it comes to pest control and plumbing.

Of course we understand that. It will only be helpful in giving a copy to the new appraiser in his job. But for him to require that I am going to pay for a new appraisal is out of the question as well don't you think?

I could REALLY use some advice here for your input on our resort. 

To start with - here are the "facts"

We had our resort appraised 12 years ago and it came in at $650,000. We also have a stand alone condo appraise at $300,000. Total appraised price is $950,000. 

Now, for the tricky part - we are now listing it for $1,250,000 and it made a potential buyer question why we were asking $300,000 more than the numbers we posted above. Part of the issue is we also have 7 condos under management with bookings a year out in advance. Additional revenue on these condos will bring in approx. $60,000. Yes, I know they are blue sky for assets, but they are under contract all the same. Secondly, we have always upgraded with our resort - every single year since we have owned it. In 2016 we were the winners of the Green Energy award from Branson. 4 time Cert. of Excellence from TripAdvisor and have made significant enhancements to the rooms (50" LED televisions - pillow top mattresses - new drywall - etc.)
 
This potential has said he wants us to run another appraisal and justify the sales price. If we can get the appraiser to justify the extra he will be interested in continuing forward with negotiations. Additionally, he wants us to pay for the appraisal which we have already said is not going to happen. We know the resort will not appraise for that much as the appraiser is going to stick to the facts and maybe bring it in at $750 or $800. They cannot count the extra revenue in from our management because that can evaporate at the will of the owners but that is highly unlikely as we generate a lot of revenue for them.

The other thing that is important to note is this. Our location is a monster - literally. We are directly across from the marina and 2 miles from one of the premiere amusement parks in the nation. Even more, the entire property sits on flat land - which for around here is remarkable. The previous owners had a gas station and convenience store when we bought and we passed on that. My wife and I were financially well off already and honestly, did not want the hassle - even with more revenue. 

This is not a distressed sale by any stretch of the imagination. We could literally (and would happily) keep our place for 5 more years. It has been one of the most financially rewarding and peaceful investments we could have ever made. Super low stress and high returns. Just thinking that it would be fun to buy the 2nd home on the Med and retire a little bit earlier than planned. :) 

Is it reasonable to price beyond what the appraisal returns and to also insist on the buyer paying for it? 

Would appreciate some insight here if possible. TIA, Mike

Thanks @Rhonda Blue for mentioning Capterra. It was because of them we signed a partnership agreement with BookingAutomation.com and could not be happier. High reviews and tech support were very important to us and they made the top 10 with a solid 5 star review. We are thrilled to offer BA to our clients and highly recommend them.

Unfortunately I can't @Don Gouge due to the marketing spazs here on BP. Anything that even remotely hints at acknowledgment or promotion causes a tectonic shift in the earth's axis. If you "look" a little bit though, it is pretty obvious. ;)

Also, you can send me a colleague request though and I can tell you more about it.

 Oh absolutely! 100% in agreement. 

Okay, your 2nd reply was how you should have went with the first.

Now, having read through it, the entire subject is a lot more clear. Install it and be happy with it. No, it won't "freak" out your clients. Good grief - they pull their pants on one leg at a time just like you do. 

I would have a small and I mean really small concern that they could turn it on and leave it running increasing your risk for flood damage.

We have pot fillers in our condos. We have had them for almost 10 plus years. Guarantee you 90 out of a 100 have no idea what they are or what they do. (Including here on BP) No one "freaks out" over them.

We are also the only resort in the nation to have commercial induction rangetops in our kitchenettes. Other than needing instructions on use - they are well received.

Happy bidet'ing :)

Thank you. Working with the brief description it was hard to grasp what could possibly be the issue.