Real Estate Valuation Template

With inputs set, move to the Income Approach and Market Approach sheets. The income approach will give you an SDE or EBITDA multiple — review the multiple range suggested by the sheet and adjust if your situation warrants it. A brokerage with consistent agent retention and a growing property management division commands more than one where two top producers account for 40% of GCI. The Market Approach compares your metrics against recent industry transactions and helps you cross-check the income approach. Pay attention to the comparable multiple range — if your income approach lands outside the market range, investigate why before taking the number to a broker.

For transactional brokerages, the income approach using Seller's Discretionary Earnings (SDE) is the standard method. Small brokerages — one to five agents, owner-operated — typically sell for 1x–2.5x SDE. Larger brokerages with proven agent recruitment systems, strong brand presence, and low dependence on any single producer can reach 3x–4x EBITDA. The market approach using GCI multiples (typically 0.5x–1.5x) provides a useful cross-check. For property management companies, recurring management fees are valued like subscription revenue — 2x–4x annual recurring revenue is common, and companies with long-term management contracts and low client churn command the top of that range. The critical input is agent or client concentration: if 30% of revenue comes from one team or one property owner, buyers apply a discount.