Selling a holiday let in Brittany - advice ?

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steveinBrittany
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Joined: Fri Mar 04, 2016 1:26 pm
Location: Cote d'Armor, Brittany
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Selling a holiday let in Brittany - advice ?

Post by steveinBrittany »

Hi everybody - this is my 1st post here.

I would like your help, please!
We have a holiday let business in Brittany (Cotes d'Armor region) which we want to sell preferably as a going concern, or failing that, as a domestic property. We have invested a lot of money into updgrading and equipping the house ready for letting and last year (its 5th year of let) we let it for 140 days (using HomeAway - property 1277152 - website as agents). We are about the get the house valued by local estate agents in Brittany (as a domestic residence) and we will then have to add on the extra value it has as a fully equipped, ongoing business let. I have a few queries which I would like your valued feedback on please:
1) how should we estimate the extra value that an ongoing business let has over and above its value as a simple domestic property ?
2) Do you value the fixtures/fittings/white goods etc separately or include it all in the asking price of the let ?
3) what online agents would you recommend for advertising such a business let in the Brittany region of France?
Also if you have any other advice or comments, please feel free to forward them to us.

Thanks
SteveinBrittany
will always listen to useful and wise comments
costa-brava
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Joined: Mon Sep 20, 2010 11:57 am
Location: costa brava spain
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Post by costa-brava »

Hello Steve
Welcome aboard. You'll find that some of us shoot from the hip. There isn't really any added value just because you've set it up for holiday letting. Some may argue that it actually detracts from the value. An exception might be like in Barcelona where they have stopped issuing new licenses so properties with an official number are selling well.
If it was in need of renovation and you bought it for a good price and you have done it up on a strict budget, then you could do well regardless of how you sell it. I took a look on Homeaway. It is a cracker of a property and you have some good reviews.
I would be very wary of a valuation by an estate agent. They will push you down in price because that is their main marketing ploy.
My advice is Google, Google and Google again. Look at everything on sale around you and then set YOUR price but be prepared to accept a reasonable offer.
Most of all be careful in how you go about renting for this year. You have taken on a heap of bookings you'll have to cancel. You have it on "book online" so you will have big headaches trying to cancel bookings made through HA.
But in direct answer to your 3 questions.
1. I am fairly certain it will sell at bricks,mortar and design value not at any "business" value.
2. Leave the fixtures and fittings open and use them to close a deal.
3. As a resident of the Costa Brava I wouldn't have a scooby doo about local agents but based on my opinion about it's business value I would go for a good international agent, maybe Engel Volkers. Take a Google in English for properties in Brittany and you'll see what agents look good. Or do the same in Rightmove. The answers are all in Google.
steveinBrittany
Posts: 2
Joined: Fri Mar 04, 2016 1:26 pm
Location: Cote d'Armor, Brittany
Contact:

Post by steveinBrittany »

Thanks for your comments costa-brava. I was really hoping to recover some of the money I spent improving the property during the sale as a let. I had heard that you should add on 2 years rent to the price of the property, as valued domestically.
I was also keen on making sure that I had as full a rental occupancy as possible this year to encourage selling to someone who wanted to continue running the place as a rental business - hence the bookings this year. I am still advertising enthusiastically.
As for the fixtures/fittings, I don't want to have to bring them back to Britain, nor do I want to sell them in France. So a business sale would be ideal, lock stock and barrel.
Agents? I'll try looking on google.
Anyone else done this sort of thing?
Thank again, costa-brava
SteveinBrittany
will always listen to useful and wise comments
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