Educating realtors and bankers...what a mess...

[Bubbles Galore]

Is there an unbiased source for how to effectively price a self serve car wash? Possibly from one of the associations and/or trade magazines? I'm looking at buying a self serve and the bank thinks that I am trying to pull a fast one on them. I need to be able to prove to them that the value just isn't there. Any help would be greatly appreciated.

John

 

[pitzerwm]

Don't expect to educate the banker on anything. Just give him what you will pay and let it sit there.

 

[Whale of a Wash]

Shouldn't the burden of price be put on the seller. Have them prove to you why it has value. They are probably holding a bigger loan on it from a few years back. The people that want to buy washes are not everywhere --tell them the offer will go down- Not up in time- If it's closed it can be a lot of work to bring back to life.

 

[Waxman]

Even real estate appraisers do a poor job sometimes at valuing a carwash business. Been down that road and had to do my own fact checking when an appraisal done for me seemed way off (it was).


I agree that you should offer nice and low because it is risky, as you well know as a current owner/operator. The bank should view your expertise and industry experience as just that and not anything else.

Especially this is true if the wash is closed as John said/asked about.


I don't think any trade publication will help determine value because it is so very site-specific, location specific and demographic specific.
Good luck.

 

[Greg Pack]

Problem is underperforming washes often sit on land more valuable that the ongoing business is worth.

 

[Bubbles Galore]

Thanks for the information guys. I will try the cost justification method and see what they tell me. I know that they think the price is justified since it comes with a vacant corner lot...

 

[robert roman]

A bank will rely on the opinion from a short list of property appraisers that it has developed some level of confidence with. So, your best bet in getting another opinion(s), other than yourself, is to obtain one from an independent third-party that understands the carwash business and how to value the worth of a carwash property. This would include consultants, brokers and other specialists that have the necessary experience and skills and understanding of what banks place the most weight on in evaluating an opinion of value.

 

[pitzerwm]

Also, Pat Crowe's famous CW Appraisal book is for sale in the classifieds. Waxman has used it and said that it was worth the investment.

 

[Waxman]

Also, Pat Crowe's famous CW Appraisal book is for sale in the classifieds. Waxman has used it and said that it was worth the investment.

YES I did.

And this book was what I used to show the bank the many errors their commercial appraiser made in an appraisal done for me.


In the end the appraisal was adjusted to account for the true facts.

 

[Ghetto Wash]

Also, Pat Crowe's famous CW Appraisal book is for sale in the classifieds. Waxman has used it and said that it was worth the investment.

What?!?!

Perfect opportunity to ask everyone to review it.

I would, but have never seen it.