{"id":1868,"date":"2018-07-06T16:01:00","date_gmt":"2018-07-06T16:01:00","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2018\/07\/06\/understanding-the-basics-of-brokerage-valuations\/"},"modified":"2025-03-13T02:32:46","modified_gmt":"2025-03-13T02:32:46","slug":"understanding-the-basics-of-brokerage-valuations","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2018\/07\/06\/understanding-the-basics-of-brokerage-valuations\/","title":{"rendered":"Understanding The Basics of Brokerage Valuations"},"content":{"rendered":"

There are many reasons why real estate brokerage owners request a valuation. The sheer number of companies we\u2019ve worked with show why we\u2019re the experts in valuing brokerage companies. <\/em><\/strong><\/p>\n

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At REAL Trends, we\u2019ve performed over 3,000 valuations<\/a> for residential real estate firms over the last 30 years. If we use simple math that averages out to about 100 per year\u2014some years less; some years more. These last couple years have undoubtedly been on the more side, with our run rate currently more than 20 per month. There\u2019s no doubt these are extraordinary times!<\/p>\n

Not Every Brokerage is Selling<\/strong><\/h3>\n

There\u2019s a contingent of owners who are contemplating selling their firms, and valuations are naturally the forerunner of going to market. But, not all of our clients are interested in selling. There are in fact a myriad of reasons why owners choose to value their firms.<\/p>\n

\"Brokerage<\/p>\n

Occasionally, we perform valuations for clients going through the process of estate planning. We also do work for family-owned businesses seeking to formalize succession planning. Other reasons are after death and during a divorce, which are mainstays regardless of what\u2019s happening in the markets. In these cases, valuations are critically important. Beneficiaries need to know what the market is for the ownership stake that was left to them, and sometimes we\u2019re called upon to defend our valuations in front of a judge if a divorce gets nasty.<\/p>\n

But, Some Are<\/strong><\/h3>\n

One of the more common reasons for valuations is the internal sale and transfer of shares. That means a full or majority owner selling shares to key people on his\/her leadership team, a minority shareholder who wants out, or if there\u2019s a partnership dispute, establishing the fair market value of the enterprise.<\/p>\n

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