Buying a real estate brokerage, appraisal or title business in Southwest 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 Lee, Collier, Charlotte, Sarasota and Manatee counties on the Gulf coast and Hendry, Glades and DeSoto inland: Fort Myers, Cape Coral, Naples, Bonita Springs, Punta Gorda, Port Charlotte, Sarasota, Venice, Bradenton, LaBelle, Clewiston, Moore Haven and Arcadia. The coastal economy runs on people who choose to live or spend the winter here: retirees, seasonal residents, and the construction, real estate, health care, financial and home services that follow them. Tourism, golf and boating add to it.

Inland, the economy is agricultural: sugarcane around Clewiston, citrus, cattle and vegetables, with Immokalee in Collier County a center for farm work. The building trades, pool, landscaping and pest control companies, property managers, medical and dental practices, and marine businesses tend to do well along the coast.

This is one of Florida's most seasonal markets. From roughly January through April, restaurants, shops and service companies run at full speed. Summers are slower, so look at monthly revenue, not only the yearly total. The coast has taken two major hurricanes in recent years: Ian came ashore at Cayo Costa in Lee County in September 2022, and Milton at Siesta Key in Sarasota County in October 2024. Rebuilding brought a wave of work for contractors that won't last forever, so ask how much recent revenue came from storm repairs. Insurance costs and flood zones weigh on every property.

Housing costs near the coast make hiring hard, especially around Naples. New communities east of Interstate 75 in Lee, Collier, Charlotte and Manatee keep service companies busy.