I was looking for some advice on the best way to value a motel freehold.
I am considering purchasing a motel freehold from a family member. I've had access to several years financials and we have agreed on the value of the business. However, their valuation of the bricks and mortar are a lot higher than what I thought they'd be.
What's the best way to get an accurate valuation of the buildings? Is it purely a case a getting a valuer in and letting them go about their business? Do the financials play any part in determining the valuation?
Any advice would be much appreciated.
I would think the value of the building and land would be based on just that – the land value and then a figure for teh building based on the bricks and mortor excluding the business and fittings.
Valuation of the business would including fittings and good will.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
'The Crest' has a wealth of experience in this area but a specialist valuer would assist greatly in the valuation of the business and freehold. See the link.
We received quotes from 4 valuers almost 2 years ago to value a 22 room motel. Prices to do the valuation ranged from $2,500 to $5K.
I'd strongly suggest you get one anytime, but even moreso when buying from a family member.
To be fair to both parties in a family deal, it's best to ensure you only pay $10 for a $10 note.
TerryW is on the money too BTW.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
You must be logged in to reply to this topic. If you don't have an account, you can register here.
