Buying a real estate brokerage, appraisal or title business in Orlando and Central 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 Orange, Seminole, Osceola, Lake, Sumter and Marion counties: Orlando, Winter Park, Kissimmee, St. Cloud, Sanford, Clermont, Leesburg, Ocala and the large retirement communities of Sumter and Lake counties. Tourism is what the area is best known for, built on the theme parks, the hotels, the vacation rental homes around Kissimmee and the Orange County Convention Center. It's far from the only business. The University of Central Florida and the military simulation and training offices near it support a technology base, and health care is a major employer.

Marion County is horse country, with thoroughbred farms around Ocala, and it has added warehouses and distribution centers along Interstate 75. Retirees in Sumter and Lake create steady demand for medical practices, home care, home maintenance and auto services. The building trades, restaurants, and companies that serve hotels and rental homes do well across the region.

Central Florida is inland, so storm surge isn't the worry it is on the coasts. Hurricanes still bring wind damage and flooding, though: Hurricane Ian flooded neighborhoods in Orange, Seminole and Osceola counties in 2022. Ask whether the business or its customers were affected.

Tourism keeps demand steadier through the year than in markets that depend on winter residents, with busy stretches around school holidays. Hotels, parks and restaurants compete hard for workers, which pushes up wages for any company that hires hourly staff. New homes have spread fast in Osceola, south Lake and southeast Orange counties and around Ocala, so check whether a company's customers are in growing areas or older ones. Traffic on Interstate 4 limits how much ground a service company can cover in a day.