Pre Management Rights Sale Valuation. Why Is it Important?
Having your Management Rights home and business professionally valued is an important step if you are considering placing your business up for sale.
The Managers Home Value determine the fair price of for your property as part of the Management Rights Sale. For those of considering refinancing, banks usually require a professional property valuation in order to assess a monetary valuation of the property/business for purposes of their loan risk.
How can a Valuation help the sale of a property/business?
Pricing the Management Rights correctly has an impact on selling. It can affect the overall price achieve for the business.
Low price and buyers assume there’s something wrong and you are trying to dump it. Overpricing could cut out your target group, spend longer on the market and end up selling your Management Rights Business for significantly less than it is worth.
Ensuring the right price when listing makes it more likely to attract the right buyers. Pricing over market value hoping to find someone foolish enough to pay the higher price can mean that many buyers will not inspect as they won’t see it as an option. Depending on the location and market, buyers may be looking for businesses only within a price range.
If you choose to mark up the business from $950,000 to $1,050,000, for example, could mean buyers looking for Management Rights under $1,000,000 will not see the business at all, even if you were happy to accept $950,000.
The right price means more confident buyers
The difficulty of going to contract overpriced (home/Business) can cost you time as the bank will value it and if you may lose the buyer as the may not be prepared to negotiate. If they do negotiate you can also lose trust with the buyer, who may then want more off than they otherwise may have accepted.
It may delay your fishing trip by more than 90 days if you have to restart the sale process.
If you have a valuation to back up your price the buyer is much more confident in any offers which will be forthcoming.
Pay attention to the Pre Management Rights Sale Valuation
Ultimately, you will be better off listening to the advice of a professional and getting the right price for your Business the first time around. If you price too high and have no bites, you could be forced to go lower on your price and may end up selling for much less than you expected.