Putting a price tag on your real estate business

(This is Part 5 of a six-part series. See Part 1: Are your ready to sell your real estate practice? Part 2: Finding best successor for your real estate biz; Part 3: How to build a saleable real estate biz; Part 4: 7 ways to beef up your real estate business and Part 6: Navigating the sale of your real estate business.) Doctors do it, lawyers do it, dentists do it – why shouldn't you sell your business when you're ready to retire? While there are many ways in which to value a business, here's what your business is worth, according to www.BusinessTown.com: 1. Eight to 10 times profit The maximum you can hope to obtain for your business is approximately 8 to 10 times your profit. To obtain this amount, you must have a dominant market share and history of a high, long-term (five years or more), predictable income. Your business must be able to generate this income without relying on you as the rainmaker. 2. Five to seven times profit If you have an established business, good m...