Should I fix deferred maintenance before selling my motel?
You have three choices on big items: fix them before listing, get written quotes and disclose them, or leave them for the buyer’s inspection. Each changes the negotiation. Fixing gives certainty, quotes give the buyer a number to work from, and silence usually gets found later and costs trust.
Every motel has something put off: a roof near its end, a tired boiler, rooftop units that struggle, a cracked parking lot, rooms that need a full refresh. Small cosmetic jobs are easy to decide. The big ones are harder, because the work is expensive and the sale is not certain. The choice is less about fixing everything and more about how you want the item to appear in the negotiation.
Fix it before you list
Repairing a major item removes it from the conversation. The buyer sees a finished job, a warranty if there is one, and fewer reasons to ask for a reduction. The risk is spending money you may not see back, and doing work to your taste rather than the buyer’s. Fixing tends to suit items that would scare a buyer or a lender on sight, such as an active leak.
Get quotes and disclose
If you would rather not do the work, collect written quotes from qualified contractors and share them with the issue. The buyer then negotiates against a real estimate instead of a worst-case guess. Buyers often assume the worst about what they cannot price, so a documented quote can calm that. Ask your lawyer what you must disclose and how to word it.
Leave it for the inspection
Some sellers say nothing and wait for the buyer’s inspection. This can work for small items, but a large problem found late tends to cost more than it would have up front. It can also reset the whole conversation and make the buyer question everything else you have told them.
- Safety or leak issues: weigh fixing these first with your broker and an inspector.
- Large but stable items: quote and disclose.
- Cosmetic items: leave for the buyer’s own plans.
Start with the basics in getting your motel ready to sell, then talk to your broker about which items matter in your market.
Related reading
15 pages on the same subject, grouped by topic.
Selling
- Expert answerHow do I get my motel ready to sell?
- GuideSelling a hotel or motel in Canada
- GuideSelling a hotel in Canada
- Expert answerHow do I hand over my motel to a new owner?
- Expert answerHow should I document my car wash’s equipment maintenance logs for buyers?
- Expert answerCan I sell my motel without a broker?
Buying
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernment7 steps to increase your business’ value—before you sell it
- 02Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
- 03Business Development Bank of CanadaIndustryHow to sell your business
- 04Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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