Please wait as we prepare your PDF file ....

Mission Chronicle Blog

Search Blog

our goal is to help you stay informed by providing timely and interesting articles.

Ego building or business building? Valuing your real estate business for retirement

03/01/2017

Download PDF

In Inman’s Special Report survey on real estate retirement, nearly 40 percent or respondents said they were trying to build a salable business for the future.

Read the full Special Report

And for those hoping to sell their business as a whole, 29.7 percent said they would keep their business active and sell referrals, while 28.6 percent did not have a plan for their business.

Volume versus cash flow and profit

According to Virginia-based executive coach and trainer Chuck Boles, president of The Chuck & Buddy College of Business Knowledge, a successful agent is often evaluated by others on the number of sales volume they settle — and that is not what business buyers are looking for.

“That’s not bankable; the only thing that is bankable is cash flow and profit history.”

He urges agents to create a database in their real estate practice that allows them to do an annual valuation — a rolling five-year historical average of their business growth patterns and values in key areas of their practice.

The executive coach does not hold with the referral system.

“The industry is too hung up on the old way of doing it, which is totally non-business based. Attorneys, dentists, CPAs and the like sell their practices because they are taught to build something salable from the outset of their careers.

“The real estate industry focuses on making ‘transaction-to-transaction heroes,’ where success is recognized based upon the number of transactions and number of listings. That’s ego-building, not business-building,” he said.

Boles suggests putting a value on each of your clients to get an idea of how truly valuable each client is.

For instance, an A+ client is someone who has bought a home with you twice and referred you twice, so is worth, say, $1,000, while an A client is one who has done one transaction and one referral, worth $750.

During the 6 to 12 months that the business seller and the new owner are working hand-in-hand, that new owner should be introduced at least twice to the A+ client and others at different tiers.

Read the full Special Report

“You are conveying the core values of client base to the custody of the new owner — passing the baton,” said Boles.

Boles and other respondents stressed that the person coming in must be compatible if the transition is to be a successful one.

“To be ultimately successful, the transition must be client-centric and for it not to be about the money or growing one’s book of business,” he said.

Email Gill South

Source: click here

Read More

INSPIRED, INTELLIGENT, INSIGHTFULL

STAY INFORMED WITH TIMELY AND INTERESTING ARTICLES FROM OUR BLOG, MISSION CHRONICLE. OUR ASPIRATION IS TO PROVIDE REALTORS AND OTHER REAL ESTATE INDUSTRY PROFESSIONALS WITH EXCEPTIONAL RESOURCES AND SHARE OUR KNOWLEDGE TO PROPEL YOU TO YOUR GOALS.

  • Phixer Mobile brings professional editing to DIY photography

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Becoming an effective real estate mentor

    Experienced luxury agents make amazing mentors since they’ve spent decades delighting clients and ...

  • Need print and social media marketing fast? Enter CoVault

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • What ‘being the best’ means to 5 agents

    Luxury homes and affluent clients require service that is second to none. If you’ve asked yourself...

  • NestEgg cracks the code for small landlords and the agents who help them

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • How 3 agents have leveraged a referral network to sell homes

    Marketing by word-of-mouth is seen as a nice-to-have in most industries. But in luxury real estate, ...

  • LeadJolt plugs into the power of Facebook lead gen

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Finding the perfect home for an unconventional client

    Have you ever had a client request the highest, most panoramic property in the area so they can maxi...

  • Showing app Entro has potential — but should address agent safety

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Dreaming of your brokerage being on the big screen? Try ITESMEDIA

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

January 2021
Mon Tue Wed Thu Fri Sat Sun
 123
45678910
11121314151617
18192021222324
25262728293031

  • Polls

    What information you are looking for?

    View Results

    Loading ... Loading ...
  • Last month Results

    How Is My Site?

    • Good (100%, 3 Votes)
    • Excellent (0%, 0 Votes)
    • Bad (0%, 0 Votes)
    • Can Be Improved (0%, 0 Votes)
    • No Comments (0%, 0 Votes)

    Total Voters: 3

    Vote

    Loading ... Loading ...