Today’s RealTrending podcast features Steve Murray, senior advisor to RealTrends and Tracey Velt, editorial director of RealTrends discussing the trends in real estate team valuations and the results of the 2021 RealTrends Team Profitability Study. This is part two. You can find part one here.
Here is a small preview of today’s interview with Steve Murray and Tracey Velt. The transcript below has been lightly edited for length and clarity:
Tracey Velt: What are some of the trends you’re seeing in real estate team valuations and how are teams building that equity to sell specifically?
Steve Murray: More and more, we understand that there are two parts to a team. The first part is sphere of influence, relationship-based, and the second part is a business system or lead generation system and how the team curates those leads.
The question about a business system is: If I am buying into that business or I’m starting my own, the question becomes, what’s my cost to replicate it? And what’s the time and the money that it would take me to replicate what you’ve built versus what you want me to pay you for it? Time and money, right? So that business is generally more valuable than sphere of influence segment, the business system.
It depends on what that system is. And then you’ve got the strategic value, right?
RealTrending features the brightest minds in real estate. Twice a month, brokerage leaders, top agents, team leaders, and industry experts share their success secrets, trends, and lessons learned navigating this ever-changing industry. Hosted by Tracey Velt and produced by Elissa Branch.