10 Reasons Brokerages Look to Sell

Most broker/owners in the real estate industry will tell you that they don’t do it for the money. There is a sense of pride attached to operating your own company and helping others be successful. However, every business reaches a point when it needs to transition to a new chapter to ensure its existence. Most of the time, that entails the sale of the business. Here are 10 of the most common reasons brokerages sell (in no particular order).

1. Low Profit or Return on Investment

Let’s face it, no one likes to work for FREE! Business owners are not running a charity organization. However, many come to realize that the money they are taking home is little more than they could get with a regular 9-to-5 gig, with half the stress. There is nothing wrong with recognizing that your time is worth more than you are being paid for it.

2. Return to Selling

Nearly all broker/owners started out as agents. Selling is simply in their DNA. There comes a time when they simply realize that their true passion is helping the client, not sitting behind a desk. It certainly doesn’t mean they couldn’t cut it as an operator. Everyone should be free to follow their passion!

3. Time for a New Career

No matter how old you are or in what stage you are in life, it’s never too late to change career paths. Life is a series of chapters. Maybe it’s time to turn the page and start a new one!

4. Managerial Stress

Any owner/operator will tell you that managing others can be extremely stressful. That stress can affect not only one’s health but also personal relationships, and even mental stability. It’s simply not worth it if there are other options available.

5. Can’t See Eye-to-Eye

Sometimes just one business partner is one too many. It’s hard to run and grow a business when your hands are tied or your creativity is stifled. There are times when it is just easier to cut ties and go your separate ways.

6. The Need for Better Resources

This is a common problem as agents demand more sophisticated tools and tech, yet don’t want to pay splits in line with the cost of doing business. Larger companies generally have access to better solutions, thanks to the economies of scale. It might just be a better outcome to join forces with someone who already has what your agents need.

7. Troubled Waters

Life can throw a curveball at any time. Our personal lives have a tendency of getting in the way of our business goals. Sometimes, the problems are legal in nature. Either way, divesting yourself of company ownership can usually provide some relief.

8. Disloyal Agents

Are you tired of pouring your heart and soul into training and supporting agents, only to have them leave you at the drop of a hat? Some owners can’t stomach the revolving door of agents and would rather sell and let someone else have the heartburn. Can you blame them?

9. You’ve Reached Your Limit

Burn out among business operators is a REAL thing! The daily grind of issues can chip away at even the most stoic individual. Maybe the thought of another downturn is too much to bear. Whatever the reason, there can come a day when you are simply DONE!

10. Time for the Beach!

There is this thing called “retirement.” It’s not for everyone. However, there are plenty of people that actually enjoy life with fewer responsibilities. When that time comes, you want to be sure you have someone that will take the business off your hands.

No matter what the reasons to sell may be, you might come to a point when you would consider transferring ownership of your company to someone else. If done correctly, this can be a highly rewarding experience, ensuring a long-lasting legacy of what you have built. The important thing to remember is to leave enough time to plan your exit strategy well. It can make all the difference.

Stephen Meadows

Stephen Meadows has been in the real estate industry since 2001 and has worked with hundreds of brokerages and thousands of agents all over the country. His passion for helping people succeed is apparent in all he does. Stephen has written 6 books and has published 15, 5 of which were Amazon Best Sellers.