SALE OF REAL ESTATE OR AN ESTABLISHED BUSINESS
Relatively often, we are contacted by real estate sellers interested in selling their property with an established business. These are mainly restaurants or cafes, but they can also be facilities with apartments that carry out tourist activity, beauty salons, etc. The value of such properties cannot be calculated solely by the value of the property or per m2, but it is necessary to take into account the added value of the work performed or performed in that property. The more successful the activity carried out, the more valuable the real estate itself.
Certainly there are certain coefficients and methods by which the value of such a property is determined, however, all this falls into the water when such a property comes on the market. There are a number of factors that make a property more or less valuable and the statistical evaluation alone is not enough for us but it is necessary to look at the bigger picture.
Example
Take for example a restaurant in the center of a Dalmatian town that has been operating for fifty years and has a certain “antique” charm, over the course of time it has gained a reputation as a cult place and in its “career” has hosted a number of local and world “faces”, it has only about a hundred m2 and a cozy terrace under an olive tree. It boasts excellent reviews and recommendations for which guests from all over the world come to it.
Opposite such a property we have in a similar location a restaurant of 300+ m2, which, for example, in a couple of years of operation was leased to various tenants, each only for a couple of months, the recession is weak, and the guests are only occasional tourists. This restaurant is decorated according to the latest fashion and equipped with high-end cuisine.. but really, which of the two properties described above, is worth more.
If we will do per m2, there are no doubts, if we will realistically do it after work... there is no doubt about that either.
The reason we have singled out this topic is to educate buyers of such properties, that they do not necessarily look at the value of m2 of real estate, but the story behind that property.
We are preparing the sale of one such charming cult restaurant.. read on!