Do You Know What Your Brokerage Is Worth?

Why do a brokerage valuation on your business every year? There are so many other tasks occupying your time when you're running a real estate brokerage that finding the time to work on the company instead of at the company is difficult — sometimes impossible. And yet, if you want to reach your full potential as a business-owner, there are certain regular assessments that you simply can't ignore.

One of those is a real estate brokerage valuation. How much is your brokerage worth today? Being able to answer that question on the fly can save you time and energy, showcase your own business expertise, and help you plan for the future. In fact, you should be valuing your brokerage every single year.

Why do you need to be assessing your company's worth so frequently? There are all kinds of reasons to keep tabs on your brokerage's valuation. Here are eleven of the most compelling.

1. Benchmarking for growth and initiative planning
2. Business and succession planning
3. Accountability for ownership and management
4. Internal transfer or sale of shares
5. Accurate personal net worth statements
6. Annual bank loan requirements
7. Seeking funding
8. Insurance purposes
9. Estate planning
10. Legal reasons
11. You're buying another brokerage or selling yours

Let's dig into each in more detail.