Real Estate Brokerage businesses typically sell for 1.5–3.0× SDE in 2026. This guide covers verified real estate brokerage valuation multiples, key value drivers, typical deal structures, and market trends for brokers and buyers.
Last verified: 2026 | Sources: IBBA Market Pulse, BVR, BIZCOMPS transaction database
| Metric | 2026 Range |
| SDE multiple | 1.5–3.0× SDE |
| EBITDA multiple | 4–6× EBITDA |
| Revenue multiple | 0.3–0.6× gross commission income (GCI) |
| Average deal size | $200K–$2M |
| Time to sell | 6–12 months |
| SBA eligible | Yes — SBA 7(a) eligible |
SBA 7(a) most common for sub-$2M transactions; seller note common; buyers typically licensed real estate brokers. Franchise acquisitions require franchisor approval. NAR settlement (2024) impact on commission structures being factored into valuations.
↔ Stable — compressed by NAR settlement impact on commission structures (2024) and buyer-agent agreement changes. Brokerages adapting to new commission transparency rules. Valuations stable but buyers pricing in 10–15% commission compression risk.
Real estate brokerages typically sell for 1.5–3.0× SDE, or 0.3–0.6× gross commission income (GCI). Agent productivity and brokerage market share are more important than size — a brokerage with 10 high-producing agents sells for more than one with 50 low-producers.
The 2024 NAR settlement changed how buyer-agent commissions are disclosed and negotiated, introducing uncertainty about future commission rates. Buyers are factoring in 10–15% potential commission compression in their valuation models, slightly suppressing multiples for commission-dependent brokerage models.
Agent productivity and retention are the most critical factors. A brokerage where the top 3 agents generate 70%+ of GCI is at high risk of value evaporation — if those agents leave, the business is worth near zero. Buyers pay premiums for brokerages with diversified, active agent rosters and brokerage-owned lead generation.
Yes — SBA 7(a) loans are commonly used for real estate brokerage acquisitions under $5M. The buyer must hold a real estate broker license in the relevant state. Franchise-affiliated brokerages require additional franchisor approval before the SBA process can proceed.
Franchise brokerages (Keller Williams, RE/MAX, Century 21) offer brand recognition and system support but carry royalty burdens (5–8% of GCI) that reduce profitability. Independent brokerages have lower overhead but require stronger local brand building. Buyers pay similar multiples for both — the choice depends on the buyer's operating preference and local market brand recognition.
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