Compass is in “advanced talks” to acquire competitor HomeServices of America, which includes Berkshire Hathaway HomeServices (BHHS), according to a report from The Wall Street Journal on March 13. Our own Agent X cited similar rumors on March 3.
However, HomeServices of America CEO Gino Blefari denies the story.
“I want to confirm to you that there are no discussions, negotiations or agreements to sell HomeServices or any of its affiliated companies and that includes the Berkshire Hathaway HomeServices franchise business,” Blefari shared in a statement to franchisees. “No such sale is being contemplated.”
The news comes just three months after Compass announced its $444 million acquisition of the Chicago-based @properties Christie’s International Real Estate, bringing the firm global.
Warren Buffett has acted as the chairman and CEO of parent company Berkshire Hathaway since 1965. BHHS falls under the umbrella of Berkshire Hathaway Energy, also led by Buffett. In 2013, that residential brokerage arm rebranded as HomeServices of America. In addition to BHHS brokerages, brands like Edina Realty, Ebby Halliday and Long & Foster are part of HomeServices of America.
The would-be acquisition raises questions related to the ongoing Gibson commissions lawsuit. Compass finalized its own $57.5 million lawsuit in that case in October, but Berkshire Hathaway Energy remains a defendant.
It’s also a crucial moment for Compass CEO Robert Reffkin as the National Association of REALTORS® nears a decision on whether to maintain, modify or repeal the Clear Cooperation Policy. Reffkin is one of the policy’s most outspoken critics.
Editor’s note: The original version of this story ran on March 13 before Belfari’s comment. It was updated March 14.
IF, they were in negotiations, and I am NOT saying they were… It would likely be a violation of the terms of negotiations’ confidentiality clauses for it to be leaked to the public. This is irresponsible reporting. I was with a Prudential franchise when Prudential Financial decided to sell the real estate arm to Warren Buffet’s Home Services. That sale meant franchisees had to drop the Prudential brand and the Berkshire Hathaway Home Services brand was created to house the franchises that were Prudential. Original HomeServices offices were directly owned by Home Services and not franchises. The franchisees have contracts for specific time frames and can decide if they want to be a franchise of the new parent company, or drop it – potentially for a different brand. IF, there were negotiations in play, the franchisees would not be involved, or told, because they might drop the brand earlier than otherwise and reduce the value any proposed sale. Again – irresponsible reporting!