What is the Value of Your Reputation?

When it comes to valuing a real estate business, of course it is important to look at assets, cashflow, profit margins and expenses, but reputation matters as well. 

Buyers will be looking to invest in the goodwill you have built, and the way your brand or service is perceived by current and potential clients. 

Your reputation affects your business value, so you need to understand what affects it and how to figure out exactly what it is worth. 

Reputation is the foundation of goodwill

Goodwill refers to the intangible assets of a business, including customer relationships, brand recognition, client loyalty and trust. When goodwill is strong, buyers are willing to pay a premium. When it's weak or can’t be quantified, even a solid financial history can fail to justify a strong price.

Read more: What is the real value of goodwill?

How to measure your real estate business reputation

If you’re preparing your agency or rent roll for sale, these are some of the factors to review and take steps to improve on: 

1. Brand awareness

Being well-known in your local market will have a powerful effect on perceived value. You can prove brand recognition through surveys or even mentions of your brand on social media, which can be tracked using digital tools. 

Your website’s analytics data and SEO tools will also give indicators of brand awareness, as they can share the number of people searching for your agency by name.  

2. Reviews, feedback and media coverage

Online reviews are another direct indicator of goodwill and reputation. Your asset will be easier to sell if the positive feedback is there in black and white, and in higher numbers than local competitors. When you’re preparing to sell, put effort into securing positive reviews on your Google Business Profile, RateMyAgent and other platforms. 

Some agencies also take the time to work on their ‘Net Promoter Score’ by directly sending surveys to clients and tracking the results. This is a proactive approach which can pay off when the time comes to sell. 

Finally, if your agency is regularly quoted in industry and mainstream publications, this is a good indicator of reputation and goodwill. Sending regular press releases can help you surface in journalists’ contact databases when they need someone to comment on a relevant issue. 

3. Awards and third-party recognition

Industry and local recognition reinforce credibility. Awards and certifications provide external proof your agency delivers results, follows best practice and is respected within the industry or neighbourhood. These accolades prove your agency has staying power and is forward-thinking, so if you are considering selling it makes sense to nominate your business and individual team members for awards. 

If your agency is part of a franchise or network, think about leveraging leaderboard statistics or internal awards to demonstrate your business success and prove your reputation. 

4. Team culture 

If team members are involved with a sale, a strong internal culture is an indicator of productivity and retention. Buyers will look closely at whether top performers are likely to stick around, and how the team works together to support clients and the brand.

Happy, high-performing staff who believe in the business and act as brand ambassadors add a layer of goodwill spreadsheets can’t show, but this is something experienced valuers and buyers will absolutely look for.

5. Client retention

An agency with a revolving door of clients is a red flag for buyers because it suggests underlying problems with service and performance. On the other hand, an extensive list of long-term clients who are happy to share testimonials and recommend the agency will confirm goodwill and positive reputation.  

Before you sell, any records or documentation to prove your retention is at or above industry benchmarks will be helpful. 

Why professional valuation matters

Any business for sale will aim to measure reputation, but valuing it from a property industry perspective takes specialist knowledge. 

A valuer who understands real estate as a business knows how to assess reputation, brand presence and goodwill, and can show you how to quantify and improve before going to market. Your valuer can also show you which data to share with prospective buyers so they are confident they are making a smart purchase and can see the value of your reputation. 

FAQ

• Why does reputation matter when valuing a real estate business?

  Reputation plays a major role in determining your business’s market value because it reflects client trust, brand recognition, and goodwill. Even with strong financials, a poor or undefined reputation can reduce perceived value. Buyers are willing to pay more for businesses that demonstrate a loyal client base, strong reviews, and positive brand presence.

• How can I measure my real estate agency’s reputation before selling?

  You can measure your agency’s reputation through several indicators, including brand awareness, online reviews, client retention rates, and media coverage. Tools such as social listening platforms, Google Analytics, and client surveys can help you track how your brand is perceived. Awards, third-party recognition, and team culture also serve as measurable signs of goodwill.

• Why should I engage a professional valuer to assess reputation and goodwill?

  A specialist valuer with deep knowledge of the property industry can quantify intangible assets like brand reputation and goodwill more accurately. They help identify strengths, highlight proof points—such as reviews, retention metrics, or awards—and recommend ways to improve perceived value before selling. This ensures buyers understand the full worth of your agency’s reputation.

Understand your agency or rent roll’s total value, get in touch with with BDH Valuers today.