Arnold Palmer said, “timing is everything in life and in golf.” If Arnie had been a real estate broker, he would have added “and selling your brokerage.”
Most brokers I meet admit they think about selling their companies but very few have a real plan for the timing of when that day comes. They’re busy doing deals, running a company and handling each “got-a-minute?” that agents dump on them day and night.
Interestingly, it often becomes the actual pace of a broker’s life that ultimately drives the timing of their decision to sell. They come down with a bad case of “health problems”– which means they have become “sick and tired” of running the brokerage and want out. Not exactly the best timing for the broker.
What is the timing like in the market today? It’s no secret M&A activity in many markets has slowed but there is still good activity overall. There are a lot of factors impacting market trends:
- Company dollar is dropping; the decline has averaged a whopping 27% over the past five (5) years
- Expenses are harder to control
- Competitive brokerage models increase agents’ commissions to the detriment of the brokerage
- Many of the new models and technologies are designed to put the agent and broker out of business
- There are few funding sources available to brokers
Yet, brokers still have options. They can cash in and take chips off the table… or they can focus on growth opportunities and build equity and company value so that they can cash out for a bigger pile of chips later.
The brokers who will benefit most are those who focus on being market and regional leaders. With brokerage prices being lower in many markets, for growth-oriented firms, it may be time to focus on being the acquirer to take advantage of those market opportunities.
We should have a confidential conversation about adding expertise in growing your brand; profitable operations and providing growth funding for you. Or… perhaps you would like to discuss cashing in and taking your chips off the table.
I can’t help you with timing in your golf game, but I can help you maximize the value of your brokerage.
Orlando Welcomes Corcoran
Congratulations to a top luxury brokerage in Orlando which is now Corcoran Premier Realty.
The 10-year old brokerage headed by Steve Healy, Chocky Burks and Matt Tomaszewski (L-R) joined Corcoran in February. The firm has an average sales price which is three times that of the local market.
In conjunction with affiliating with Corcoran, the 40+ agent brokerage has just finished construction and moved into new offices. Recruiting is underway and a number of established agents from other firms have moved to part of Corcoran Premier Realty.
Corcoran blows into the Windy City
Corcoran Group recently announced it’s launching its first Midwestern outpost: Corcoran Urban Real Estate of Chicago. Full Story
Texas has a big advantage for real estate investors
A big advantage for investors in Texas is that people are still moving there. Read more.
How do you measure the success of a brokerage?
There are many ways to measure the success of a brokerage; however, the difficult part in interpreting this information lies simply in the dilemma that a lot of the brokerages on the lists are private companies without reporting requirements. Learn more in HousingWire.
Judge dismisses antitrust lawsuit against Zillow Group’s Zestimate home valuation tool
Over the years, the Zestimate tool has served as a source of contention from home sellers expecting to get more, home buyers expecting to pay less, and real estate professionals wishing they weren’t caught in the middle. Read the full story here.
How real estate is reacting to the Coronavirus
NAR is providing this guidance to help REALTORS® respond to the coronavirus’s potential impact on the real estate industry. Read more.
