5 Mistakes to Avoid When Selling Your Resort
Recognizing and avoiding these five common mistakes will help you when you decide to sell your resort.
1. Not Planning Ahead or Waiting Too Long to Sell – Long Term Planning/Succession Planning –
Plan to sell when your resort is at the top of your game. It will make a sale easier and bring you a better price.
A resort can sell rather quickly, but depending on the demand and market conditions, it can take much longer to sell. We recommend keeping updated records, a detailed business/sales history and current sales portfolio on hand at all times.
A potential buyer needs to feel they are being assisted/primed for future success. If they see you have been planning and considering this for quite some time and that it’s not a quick “I’ve had enough” sale, this will increase buyer confidence.
2. Not Finding the Right Broker/Real Estate Agent to Sell Your Resort
Too often, Resort Owners go with the first Agent that promises them the highest asking price just to list their property and get the process going. However, if the asking price is too high, it will scare away potential buyers right away, and will just add to the selling time.
Take into consideration the Resort/Business acumen and experience of the Broker/Agent.
Take time to interview several brokers/agents. A realistic outcome of what is expected will get you going in the right direction.
3. Thinking The Agent Will Do All the Work in Promoting Your Sale
A Broker/Agent should work hard to find you buyer leads, but it’s important that you continue to promote yourself as well.
Resort Ownership is a tough business – much tougher than people realize! The more effort you put into your sale, the better the final price you will be able to obtain. You need to continue operating the resort as if it is not for sale. Keep in mind that prospective buyers will be very suspect of your reason for selling. Have a strategy in place to eliminate any fears. We continually remind sellers that the plan for selling starts the day that you buy the resort.
4. Asking Too Much or Too Little for the Resort
Setting an unrealistic price tag can lead to a lack of leads, increase sales time, and makes both the seller and the agent look bad.
Consider your industry; similar businesses, the overall economy and your specific marketplace when pricing your Resort to sell. There simply is no room for “Personal” feelings when pricing and selling your resort. You have to price it to sell from the first day that it is listed. This is about getting top dollar, for a successful, operational business.
5. Selling to The Wrong Person – taking the first offer may not be the wisest choice as it may not be your best offer.
Similarly, selling your resort to someone for top dollar with little or no money down, along with an extended contract may lead you to lose it all.
Evaluate your options and work with your agent to make the best selection for both your and the new owner’s long term success. When the business sale goes as planned, it creates a tremendous opportunity for both seller and buyer. Success continues all-around!