Selling My Real Estate Business- Succession

By
Real Estate Agent with KW Elite

      This is Part 2 of How to Sell my Real Estate Business.

If you are serious about getting Top Dollar and getting 

a stream of income for your Retirement Years , you 

will need a well organized Succession Plan . And 

ideally it should start 8-10 years before you completely 

leave the Real Estate Business. I will address 3 steps .

       Step #1-  Interview and choose a Successor. 
For the next three years you will work as Partners on 

all of the Buyers & Sellers you have received . You will

go on Appointments together and promote the two of 

you as interchangeable parts . You will receive the bulk

of the income and pay the new partner a agreed upon

Referral Fee . The Public sees the two of you as a Team .

        Step #2- starting in years 4 through 6 

When you have a solid lead you and your partner will

both go on the first appointment to demonstrate the

team system ( 2 heads are better than 1) . However the

partner will do 60-66% of the work ( hrs involved) and 

be compensated by a similar percentage. You will be 

making less , but do so to begin to pass the Baton . Your

goal is to now start to transfer responsibilities and hours

of involvement, which will allow you to Travel and slow 

down your pace in Real Estate.

        Step #3- years 7 through 10 ( or longer) 

At this point you could physically move away from the 

Marketplace or out of State . You receive a lead from 

someone who views you as an active Realtor. You build

rapport and tell them you are out of town, but are going 

to tell your Partner to call them and get started . You 

and your partner will need to decide how active you 

will be in servicing the lead . Partner makes the bulk-of

the income and pays you a Referral Fee . This relationship 

can continue as long as you Renew your License !

TWO OTHER POINTS-  1. Read my first Blog Post on this

topic . 2. Beginning in the first year all of your clients 

will be in a Data Base that will communicate your 

partnership/ Team. Over all of the remaining years they

will see the both of you working together.

One Last item - have an Attorney prepare Partnership

Agreements .

 

 

Posted by

 

Michael J. Perry

KELLER WILLIAMS Elite

www.lancaster4sale.com  

 

1280 Plaza Blvd. , Lancaster, PA 17601

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Longtime West Lampeter resident and Lancaster County Realtor!

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Comments (10)

Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Michael - this baton-pass is definitely a relay and not a sprint.  

Jan 23, 2023 11:17 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I have only bought one agents practice over my 24 years as a real estate professional. I should’ve done more research because most of his clientele was elderly and/or had passed away and he never did an introduction for me…

Jan 23, 2023 02:21 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

HI Michael- I wonder how many agents think about this???

Jan 23, 2023 08:59 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

What a great post Michael J. Perry  probably no-one will want my business, too hard to handle, but I will take your advice and try it see if anyone wants to be the Land Man In Los Angeles:)Endr

Jan 23, 2023 11:22 PM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

One size fits all would not work in every market but great post to inspire. If only a handful of signs, a real estate agency that is let to rot away with a few listings..what are you really buying? Your training, mentoring is a big piece of what you are selling.

Jan 24, 2023 03:30 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Interesting information - where are you in this process?

Jan 24, 2023 05:00 AM
Roy Kelley
Retired - Gaithersburg, MD

This is good advice to share. 

Sadly, I did not have the desired person to take over my business.

Jan 24, 2023 07:20 AM
Michael J. Perry

I was in the same boat when I sold my Brokerage . I had not raised up a Successor 

Jan 24, 2023 07:49 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I am now in the last 10 years 

Jan 24, 2023 07:49 AM
Tracy Lee Parker
RE/MAX DFW Associates - Royse City, TX
Buy*Sell*Rent

Hi Michael, I need to go read your first post, can you direct me to it?  I need to start this now! 

Jan 27, 2023 07:07 AM
Michael J. Perry

It’s about 2or3 down on my blog roll titled 

Can a Realtor Sell their Business when Retiring

Jan 27, 2023 09:04 AM
Eileen Burns
Trans State Commercial RE Ft. Lauderdale/Miami/Palm Beach - Fort Lauderdale, FL
FLorida Real Estate Connector

Looking forward to hearing more on a live zoom presentation in the future Michael J. Perry should you be open to the invitation😎

Jan 30, 2023 06:37 AM