Your Succession Strategy Determines The Legacy You’ll Leave

I’ve been around real estate my whole life. My dad was a broker, and with his encouragement, I got licensed at 19. After a few years in sports management and law, I found my way back to the industry for good.

Over the past two decades, I’ve worn just about every hat you can wear in this business: agent, manager, franchise President/CEO, and now, president of one of the largest networks of affiliates in the country. And if there’s one trend I’ve seen come into sharper focus over the years, it’s the way brokers are thinking (or not thinking) about succession.

Let’s be honest: The default assumption that your child or relative will take over the family brokerage isn’t the plan it used to be. In fact, it’s often not a plan at all.

Just this year, I spoke with two Coldwell Banker affiliates who chose to sell their companies. They didn’t sell to their children but to top-performing agents already thriving inside their organizations. These weren’t last-minute fire sales either; they were well-planned transitions designed to protect legacy and maximize value.

The next chapter of ownership

In talking with brokers across the country and around the globe, one thing comes up again and again is that many rising leaders have a passion for the business, but not the appetite for the financial risk and rewards that come with ownership.

That doesn’t mean the future of your business is doomed. It means it’s time to approach succession the same way you approach marketing plans or attracting talent: with intentionality, structure and a long enough runway to get it right.

Your brokerage is a business — and a valuable one at that. The more you treat it like an asset, the more options you’ll have when it’s time to transition.

3 succession strategy moves to start making today

If you want your business to have staying power, here are three plays to put into action now:

1. Start building a bench

Identify potential successors, whether they’re already on your team or sitting outside your four walls. Start delegating meaningful responsibilities, and establish clear development pathways that will keep high-potential talent engaged and invested in the long-term success of the business.

Give them room to lead. Coach them. Help them understand what it takes to run, not just sell.

2. Know what you’re worth

A lot of brokers have no idea what their business would sell for. Don’t wait until you’re thinking of exiting. Start consistently assessing your brokerage’s market value, whether in the context of an acquisition, merger or internal sale.

A clear understanding of your business’s worth enables more informed decisions around investment, growth strategy and timing of potential transitions.

3. Make succession planning an annual discipline

Just like budgeting or goal setting, this should be something you revisit every year. Use a simple framework that helps you track potential successors’ readiness: Ready now (step in anytime between tomorrow and under two years), ready in the short-term (one to two years) or ready in the long-term (three to five years). This is what I call the “bench strength chart.” It’ll keep your plan fresh and your mindset sharp.

What I learned from doing it myself

Years ago, I led a company where I was required to submit a formal succession plan every single year. At the time, it felt unnecessary. I was young. I wasn’t going anywhere. But looking back, it was one of the best leadership exercises I’ve ever done.

Why? Because it forced me to think beyond myself. To build systems, elevate people and ensure the organization could thrive with or without me. That’s real leadership.

The best leaders I know don’t wait until they’re tired, burned out or blindsided to think about succession. They make it part of their strategy before they need it.

Now’s the time, not later

I get it. The market is tough and everyone is (understandably) focused on lead gen, margin, recruiting and retention. But in times like these, the brokers who keep investing in their foundation are the ones who come out stronger.

That includes succession planning.

We’ve made it a focus at Coldwell Banker, helping affiliates build businesses that outlast them. That includes everything from valuation tools and transition support to helping agents become owners, and owners exit on their own terms.

You don’t need to have all the answers today. But you do need to start asking the questions.

The brokers who will win the next decade aren’t just the best salespeople. They’re the ones building organizations that can grow without them.