We sold the full business, the corporation, the income stream from business in the pipeline, the systems, database, website, name, and franchise, everything except the office building. Tim and Graham say they were willing to pay the price they did because of the systems and the branding, #1 market share in our community for years. Truly the business runs itself with us tweaking systems here and there and providing leadership. Neither Joe nor I have really worked IN the business much the last year or so, and I've only been working about 3 days a week for quite some time.
We established a price based on a multiplier of an average of the last 3 years net profit. We were paid with a nice chunk down and the balance monthly over 5 years. We work in the business part time for 60 days and then continue to consult by phone/email or on occasional visits for a year, and I'll probably stay in touch for as long as they want me to....this was our "baby" and we really care about all the folks on the team. It's been nice that Tim, Graham, Joe and I really like and respect each other so it's been easy to work together on a strategy for merging our brands over the next several years. Since we still own property here and have family here, it's easy for us to be back and forth between our new place in WI and AZ. We can continue to list/sell for the team if we choose based on a split for new business originated after the closing.
This is a new concept, having a team with multiple physical locations and since I seem to be coaching agents who are building their businesses with an eye to a future exit, it's exciting for me to stay involved beyond my contractual committment. BTW, this business never hit the market. I called Tim for advise re selling since I knew he had assisted others, and after a discussion of numbers, they decided to visit and we all liked the concept and shook hands on the deal then. Hope that gives you the info you were looking for! Debbie

thats excellent...thanks.
suspect there will be many agents following your path over the next few years....

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Tim and Julie Harris

the conclusion that I have come to is that you dont get rich selling real estate you get rich with the money you earn from selling real estate.
Our businesses really have very little value to anyone outside of real estate. There arent people standing in line to buy real estate businesses.

There are a lot of agents transferring their businesses these days and I've seen it happen as many ways as one can think of doing. There are so many variables as to what it is worth and there are many, many things agents can do to make their business of value...the two most important is putting a plan in place that introduces the "buyer" to the clientele base and promotes a story that you want to have out in the market place. The second most important is setting your data base up so that there is tons of information about your client base that can be mined to help the buyer know where to spend their time winning over the business. I am leading a panel on this topic at Celebration in Vegas next year.

Hi Stars from Jo Ellen Nash!

This is all good stuff...my observation is, that other than me, there are many stars who are now at a point in ther careers where they want to change markets or have dual lifestyles ( like me, Naples, FL and Vail, CO). This is occuring more and more frequently and will escalate as some of us look to retiring elsewhere from our primary market, which made us originally successful.

It sounds like an outright sale of our business is not that lucrative and I really don't want to sell Vail yet. Still love it there and still want to work that market.
Any suggestions from people who have done it as to how to fast track into a dual new market ,if you no longer want to work "in" the business but still want to work "on" it? I know you can pick up another agent's business, or buy an existing company, but what are your thoughts on that and what considerations should I be thinking about?

I am quite happy running my company in Vail virtually during the winter and being there full time in the summer and it is too soon to tell how it will go. However, I am already seeing that my team members don't seem to have the same amount of caring or drive when I am not around to "kick butt" and make things happen. It still is too much me (82% of volume last year was mine) to sell. Better to take the ongoing income, even if it were to dwindle and not be built up over the next five years, and referral income after that, than try to sell it now. I also have no energy or heart in it to want to spend a lot of time building the Vail company (ie adding staff and a lot of productive agents) to a point where it is saleable for any amount of money that is significant. Rather focus my energy on Naples as I will be here 8 months a year. My name brand is established in Vail, after building the company for 22 years, and it is worth something-not willing to give it up entirely and still love Vail in the summer-just dont want to spend winters there full time any more. I am in the process of now branding myself to serve both markets and many of my clients own homes in both places. It is a starting point....

So, over this next year I am trying to figure this out...no rush but want to be smart about it. Any words of wisdom? I know I am not the only one now and there will be more of these situations to come....thanks for the input! Jo Ellen

Hi Joe Ellen,

Great seeing you at the event last month.
We know of several agents/ teams who have been paid significant amounts of $$ for moving their real estate business from one broker to another....CB to Pru or from being their own shop into a C21. etc. Its conceivable that you could 'move' to the local Pru office/ refer them 100% of your business/ give them full use of your brand...and walk. The local market thinks you simply joined the local c21 office.

Homestore, Cendant etc (via their brokers) will sometimes 'buy' / 'pay' an agent/ team who has significant market share to merge with their local offices. Without permission I dont want to disclose who has sold this way but I will tell you that we know of an agent who was paid $1m to 'switch offices'. This was in a market what this agent had by far the largest market share.

Did you hear about the event taking place in April 07 in San Fran? Invite only, open to the nations top producing agents. 500ish people (maybe more) will be there. There will be a speaker on selling your real estate practice. Interested in attending?

Tim Harris

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Tim and Julie Harris

I am interested in hearing a little more about it. thanks, Jo