I have a Adult family home . I want to know can I sell as a business?

I have two placements in my home if the company would to take over the cares they would have a income as soon as they take over. They want to pay only the appraisal rate for the home should I bea able to get more for my home? Due to this fact
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Christopher Allan Doerfler

Christopher Allan Doerfler

Contributor Level 5
As a general rule of economics, an asset is only worth what someone is willing to pay. If all the company is willing to pay is the value of the house, you have to decide if it is worth it to you to sell for that price.

It sounds like you are really selling two things, a property and a business/income stream. Each has independent value. The house may be worth the appraised value. In this economy do you think you could sell the house to a family who did not intend to use it for a business for the appraised value? The income stream may have separate value, although you also have to consider the costs of earning that income stream. In other words, what is the net profit?

Another consideration is that if you are living in your home as well as working from it, you are getting a twofer. Your house payment is being funded by the placements. The people working for the company buying the business are not going to live in the house. They have to make a profit on the placements after figuring in the cost of buying the house. It may be that the fair price for the company, after considering everything, is the appraised value of the home. How much would the placements be worth to you if you had to pay to live somewhere else too?

Ultimately, I don't know enough to tell you if you are getting a fair price or whether you should hold out for more. The above points are only things to consider in deciding whether the deal is good for you. You will have to decide that for yourself.

Good luck.

Chris
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