Appraisal of Real Estate Offices & Selling Your Book of Business

Quick Takeaways

  • A book of business consists of a list of your current and former clients along with their contact information
  • Your history and relationships with clients are priceless! A book of business is a great way to demonstrate the intangible value of your client relationships, and often has monetary value as well.
  • Books of business can help you grow – keeping track of clients and their life changes may get you further business and even referrals

Source: What is a Book of Business (The Balance, Sep. 17, 2020)

Placing a dollar amount of your real estate firm, office, or team, is a daunting and to some, seemingly impossible task. However, three tried and true methods exist for business appraisal and valuation: asset-based, earning value, and market value. No matter what approach works best for you, a professional business appraiser can help you accurately determine a fair and unbiased price point.

Your book of business contains vital information for any appraisal or valuation. Contact lists help demonstrate the intangible worth of your client relationships, and can help in appraisal and valuation.

When the time comes to move on from your position, selling your book of business is an option. If you are in a leadership position, however, your succession planning will require significantly more than passing on your client list. Succession planning is key to a thriving and profitable business, but it requires a great deal of foresight. According to Deloitte, while 86% of leadership think succession planning is extremely important, only 14% feel they are doing it well.

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