Times are changing, the economy is tumultuous, and some Brokerages are considering joining forces with another company to grow their market share. Others are selling because they no longer want to run a business; they simply want to sell real estate. Before you jump in to anything, make sure you are merging with a good match or doing what you really want to do. Realtor Magazine offers some tips:
-Do some prep work. Research and write down what is most important to you in a new business. Do you want to sell your company or merge with another?
-Look at their culture. This includes the other agents, the type and size of homes typical homes listed, work ethic, etc.
-Prove your value. Back up your company’s worth with financial records. This provides for an easier evaluation process. Good accounting should also be a priority to prevent any discrepancies.
-Build your value beyond sales and listings. Focus on an intangible value and market it. Value for a merger can even be found in location.
-Listen. Don’t ignore offers. Listening to all of them gives you an idea of what is available and what you are looking for. By keeping your options open you will know when the right opportunity arrives.
-Check all the details. Look at the cash upfront and payments overtime you will receive. Look at your potential partner’s solvency and financials. If they left would you immediately lose value?
-Trust. This is key for a merger to work properly. You should feel comfortable with the person you are going to work with.
And thank you for making me Your Orange County Real Estate Connection.
Michael Caruso, Broker ABR ABRM CRB CRS GREEN GRI 2007 President, Orange County Association of Realtors