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Real Estate Brokerage Business Valuation Formula:

Valuing Real Estate Businesses: Here is a general business valuation formula or method for established residential  main street real estate brokerage businesses or realty companies based on a percentage of annual gross commissions generated that can be used to help formulate an approximate value and asking price to market an existing business.

Real Estate Brokerage Business Valuation Formula: Approximately 40% of annual gross commissions produced by office sales people.

Broker Comments: In general I have found real estate brokerage businesses in the AZ market challenging to sell for any number of reasons including many sellers having unusually high expectations of the value of their business and the market being oversaturated with real estate offices because of the relatively low barrier to entry. 

Note: Always contact and consult with a Business Broker, Business Appraiser, or financial adviser who is familiar with the dynamics of your local market and economy because conditions for establishing an asking price for a coffee house business can vary based on a wide variety of factors and local conditions.