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10/07/2007 -
Motels and Caravan sales comment from Mike Philpott |
Motels and Caravan Parks are selling and indications are for well priced property, a solid year ahead. The 2007 - 2008 financials years has started with a bang!
The finance industry is changing with most organisations needing a valuation prior to finance with the exception of the NAB. To compensate the NAB proposed charging a higher interest rate for the priviledge on one occasion we understand nearly 1.5% more than the Commonwealth for the "Commercial Risk". It does pay to check and we recommend professionals in this area, just call us or check the professional assistance area of our web site.
Recently we had a confidentiality concern from a valuation need that affected a purchaser obtaining finance where the vendor had concerns re information about a sale reaching the market as the contract in this instance was conditional subject to finance. Currently options exist for purchasers with finance that do not need valuations, but the market is altering and more and more valuations are needed. The simple reality is that most people purchasing a business need to borrow funds and as most financiers need to have valuations to assess the risk profile, the issues of confidentiality when the valuations are done will raise them selves as valuers are required to:
Undertake appropriate enquiries of Council to determine zoning, out-standing orders etc, which may or may not have a material impact on the value of the property;
Undertake market enquiries within the area and surrounding, to ascertain the depth of the market and whether the motel can sustainable trade, potential for increase etc. Appropriate market enquiries permit the valuer to ascertain whether the purchase price is at market / within parameters.
Vendors need to realise the best possible price when they sell and to do this you must let the market know you are selling, so why not let as many people know early in the stage rather than later through a neighbour, Council officer, bank officer etc. Most people respect honesty and openness.
Tourism Brokers have systems that can contact thousands of prospects in a very short period of time.
Tourism Brokers are trained professionals that deal with property issues on a daily basis. If you are buying, selling or just contemplating, please give one of our team a call so we may have the opportunity of "working together".
We recommend marketing property, but respect the vendors right to have a property promoted in a particular way.
Michael Philpott 043 313 7927
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