Have Valuations for Real Estate Brokerages Bottomed Out?

There’s been a steady question circulating among brokerage owners and investors alike: have valuations finally bottomed out?

Have valuations bottomed out?

After two years of market corrections, rising costs, and economic recalibration, indicators suggest we may be there—or at least very close. The frothy valuations of 2021 are long gone. And while that might sound discouraging, there’s good news: things have stopped falling. They’ve leveled out.

In fact, REMA’s RapidValuation system—which tracks deal data across the U.S.—is now showing that most states have hit a stable point.

Valuations have partially stabilized for many brokerages, especially in markets with consistent production and moderate agent turnover. While coastal and highly saturated metro areas are still lagging, we’re starting to see modest valuation increases in the central U.S.—including the Plains, the Dakotas, and parts of the Whiskey South (Kentucky, Tennessee, Missouri). These regions have remained relatively steady in terms of economic conditions and agent output, and buyers are paying attention. Brokerages with solid financials and well-managed operations in these areas are beginning to command slightly higher multiples than they were six to nine months ago.

Most of the downward valuation pressure over the past 18 months has come from shrinking agent counts, lower per-agent productivity, and rising operating costs. Investors and acquirers have become more cautious, shifting their focus away from projected growth and toward real-time profitability. EBITDA multiples that once averaged 2.5 to 3.0 have dropped closer to 1.5 to 2.0—but that seems to be the floor. We’re not seeing further decline unless a firm is underperforming significantly or carrying heavy debt.

Buyers are now looking for lean, resilient brokerages. Profitability, retention systems, automation, and operational discipline matter more than branding or agent headcount. A smaller brokerage with strong systems and consistent margins is often more appealing than a larger one with bloated expenses and erratic income.

If you're unsure of your company’s expenditures, REMA has partnered with top business development and consulting firms to help brokerages streamline operations and boost profitability.

That’s why understanding your true value—not just what you think your business might be worth—is more critical than ever. REMA’s confidential RapidValuation looks beyond surface-level revenue and focuses on what actually drives marketability: net earnings, systems, agent retention, and buyer readiness. It’s deal-based, not hypothetical. And it’s giving owners a clear picture of where they really stand—whether they’re planning to sell or not.

If you’re considering selling in the next 12 to 36 months, now’s the time to get your house in order. Cut unnecessary expenses. Tighten up operations. Identify where you may be too owner-reliant. And above all—stop guessing. A professional valuation isn’t a commitment to sell; it’s a smart move to understand your options.

So, have valuations bottomed out? For most brokerages—yes. And for some, we’re beginning to see early signs of a rebound.

If you’re ready to understand what your brokerage is worth in today’s market, let’s start there. Quietly. Professionally. On your terms.