Real estate
Real estate businesses in BC come in two kinds: companies that sell real estate services, such as brokerages, and operating businesses whose value is tangled up with the property they occupy. Both get mis-valued. We separate the business from the building, value each honestly and work alongside licensed realtors and lawyers on the property.
How the money works
- A brokerage's revenue walks out the door with its agents, so retention decides value
- Owner-occupied premises distort earnings unless a market rent is charged
- Property values and business values move for different reasons and are financed differently
- Commission-based income is cyclical and buyers normalise it across several years
The moves we make
- Value brokerages on retained agent production rather than peak-year commissions
- Separate the operating company from the real estate and value each on its own terms
- Model sale-leaseback and sell-together options so the owner sees the real difference
- Coordinate licensed realtors, appraisers and lawyers so both parts close together
Selling a brokerage
The hard truth about a brokerage is that the agents are the business, and they are not employees. A buyer is paying for the likelihood that productive agents stay after the sale, plus the brand, the office, the systems and any recurring property management income. We value brokerages on retained production, not the best year, and we structure deals with retention conditions, earn-outs tied to agent count or production and a transition in which the selling broker helps keep the team together.
When the building is part of the deal
Many BC businesses own their premises, and owners often think of the two as one asset. Buyers and lenders do not. The operating business is valued on normalised earnings after a market rent. The property is appraised on its own. Selling together simplifies the transaction but shrinks the buyer pool to those who can finance both. Selling the business and keeping the building gives you rental income and a tenant you know. We model each route with you and your CPA.
Ali's property background
Ali founded Realty.Agency and vancouver.estate alongside his other companies, so the marketing and transaction side of real estate is familiar ground to us. That matters when a deal has both a business and a property in it: we understand how realtors, appraisers and lenders will each look at their piece, and we keep the business valuation honest rather than letting property optimism inflate it. Property brokerage itself is always done by licensed realtors, never by us, and property law by your lawyer.
Questions from real estate owners
How is a real estate brokerage valued?
On the earnings that survive a change of ownership: retained agent production, recurring property management fees and the brand. Peak-year commissions and the selling broker's personal production are discounted.
Should I sell my building with my business?
It depends on your retirement income needs, the buyer pool and tax, which your CPA assesses. We model selling together, selling the business and leasing the property, and a sale-leaseback.
Do you act as a realtor?
No. Property sales are handled by licensed realtors and property law by your lawyer. We value and sell the business and coordinate the whole transaction so both parts close together.
Start with a confidential conversation.
Tell Ali where the business is and what you want to happen next. You leave with a straight read on value, timing and the two or three moves that matter, whether or not we work together.