Buying a real estate brokerage, appraisal or title business in Jacksonville and Northeast Florida

• Brokerage: productive agents who have stayed for years, rather than a long list of inactive licenses, and a name and lead sources that belong to the firm.
• Appraisal: several licensed appraisers, a mix of lender and private clients, and a clean review history.
• Title: referrals from many lenders, builders, real estate offices and attorneys; experienced closers; and clean escrow records and underwriter audits.
• Revenue that held up reasonably well in a slow year.
• Rental management accounts under signed agreements, which add steadier monthly fees.
• Good systems for documents, escrow and record keeping.
• An owner who isn't the biggest producer.
• Licenses, registrations and errors and omissions coverage (professional liability insurance) that are current, with no history of discipline.

• The housing cycle. Look at revenue in the slowest recent year, not just the best. Title and appraisal work tied to refinancing can fall fast when rates rise.
• People. Agents and appraisers can usually leave whenever they like. Find out who produces most of the revenue and what would keep them.
• Escrow and trust accounts. Read the monthly reconciliations, underwriter audit reports and any complaints to the commission or the department.
• Claims and fraud. Errors and omissions insurance history, title claims, and controls against wire fraud at closing.
• Referral arrangements. Federal law (RESPA, the Real Estate Settlement Procedures Act) restricts paying for referrals of settlement services. Have an attorney review any marketing or joint venture agreements.
• Franchise. If the brokerage operates under a franchise, check whether the agreement can move to you and on what terms.
• Florida insurance. Ask how often trouble getting property insurance has delayed or killed closings.

• Who are your top agents, appraisers or closers, and how long have they been with you?
• How did the business do the last time home sales slowed down?
• Where do most of your deals or orders come from?
• Has an escrow account ever been short or failed an audit?
• Have you had any errors and omissions claims, title claims or wire fraud attempts?
• If you're part of a franchise, can the agreement move to a new owner?
• After the sale, who would serve as broker of record or agent in charge?

This region covers Duval, St. Johns, Clay, Nassau, Baker and Putnam counties: Jacksonville, Jacksonville Beach, St. Augustine, Ponte Vedra Beach, Orange Park, Fleming Island, Green Cove Springs, Fernandina Beach, Yulee, Macclenny and Palatka. Jacksonville merged with most of Duval County in 1968, which makes it the largest city by land area in the lower 48 states.

The economy leans on logistics, the Navy and financial services. Logistics runs through JAXPORT, major rail lines and the meeting of Interstates 95 and 10. The Navy has Naval Air Station Jacksonville and Naval Station Mayport. Insurance and health care matter too. St. Augustine, founded by the Spanish in 1565, and Amelia Island draw steady tourism. Trucking and logistics firms, the building trades, medical practices and home services all fit this market.

Northeast Florida is less seasonal than South or Southwest Florida, with fewer winter residents and more year-round employers. Direct hurricane landfalls have been less common here than on other parts of the coast, but storms still bring flooding along the St. Johns River and the beaches, so check insurance costs and flood zones.

Military families bring skilled workers and working spouses into the labor pool, though they also move on when orders change. St. Johns, Clay and Nassau have added the most new homes, and companies serving those suburbs have grown with them. Georgia is close, and some companies here serve customers across the state line. Work in Georgia may need Georgia licenses, so ask how much revenue comes from there and who holds those licenses.