HomeServices of America explained
HomeServices of America is the United States' largest residential real estate services company, based on closed transactions. The company provides real estate brokerage services, mortgage loan origination, franchising, title insurance/escrow and closing services, home warranties, property insurance, casualty insurance, and relocation services.
History
The company traces its roots to AmerUs Home Services Inc.
In 1998, AmerUs Home Services was acquired by MidAmerican Energy Holdings Company.[1] [2] [3]
In 1999, MidAmerican renamed its brokerage business HomeServices and acquired Semonin Realtors, operating in Louisville, and Long Realty, operating in Arizona.[4] [5]
In 1999, Berkshire Hathaway acquired MidAmerican Energy Holdings Company.[6] [7]
In 2006, the company acquired Atlanta-based real estate brokerage Harry Norman Realtors.[8] [9]
In 2012, the company acquired real estate brokerage firms from Prudential and Real Living and rebranded Prudential Real Estate to Berkshire Hathaway HomeServices.[10] [11]
In August 2013, the company acquired Prudential Fox & Roach, Realtors®/Trident Group.[12] [13] [14]
In November 2013, the company acquired Prudential Rubloff Properties, operating in the Chicago area.[15]
In May 2014, the company acquired Intero Real Estate Services, operating in Silicon Valley.[16] [17] [18]
In July 2015, the company acquired Prudential Centennial Realty, operating in Westchester County,[19] and First Weber, the largest residential brokerage in Wisconsin.[20] [21]
In January 2017, the company acquired Houlihan Lawrence, the largest residential brokerage in Westchester County.[22] [23]
In April 2017, the company acquired Gloria Nilson & Co. Real Estate, a residential brokerage in New Jersey.[24] [25] The company also formed a strategic alliance with Juwai.com, China's largest overseas property portal, offering access to high-net-worth individual Chinese buyers looking to purchase homes.[26] [27]
In June 2017, Robert Moline, president of the company, retired.[28]
In September 2017, the company acquired Long & Foster.[29] [30]
In 2018, the company acquired North Texas real estate firm Ebby Halliday.[31]
In 2020, they originated 43,683 mortgages with a value of $13.8 billion.[32]
In 2022, through its Edina Realty[33] subsidiary, it acquired Sioux Falls, South Dakota-based Hegg Realtors.[34]
Legal issues
On November 1, 2023, a federal jury in Kansas City, Missouri, found Berkshire Hathaway and the National Association of Realtors liable to pay $1.78 billion in damages.[35] [36] [37] The verdict came as the Warren Buffett-led brand, Berkshire Hathaway HomeServices, along with the National Association of Realtors, were found guilty of manipulating and artificially inflating the commissions on numerous home sales.[38] [39]
According to the jury in Kansas City, the manipulation resulting in inflated commissions caused an artificial rise in mortgage rates and property prices in the housing market.[37] [40]
The number of plaintiffs in the class-action lawsuit included sellers of over 260,000 homes in Illinois, Missouri, and Kansas.[41] They raised concerns about the high commissions they were obligated to pay to the home buyers' brokers between 2015 and 2022. The trial lasted two weeks, after which the jury awarded the plaintiffs $1.78 billion in damages. The defendants in the lawsuit included Berkshire-owned HomeServices of America and its two subsidiaries, along with Keller Williams Realty.[42]
The lead lawyer for the plaintiffs in this lawsuit was Michael Ketchmark.[35] According to media sources, the awarded damages could be tripled to more than $5.3 billion under United States antitrust law.
Notes and References
- News: MidAmerican to Buy Real Estate Group . AGIS . SALPUKAS . . April 7, 1998.
- News: What America's Homes Need Is A Conglomerate . Steve . Kerch . . May 24, 1998.
- News: Edina Realty sold to energy company . . April 6, 1998.
- Web site: Dooley. Tom. Industry Watch: HomeServices.com Moves into the Spotlight. Realtor Magazine. 2019-07-10. 2011-04-28.
- Web site: Long Realty acquired. Phoenix Business Journal. 2019-07-10.
- News: Investors Led by Buffett to Buy Iowa's MidAmerican Energy . Steven . Lipin . James P. . Miller . . October 25, 1999.
- News: Buffett gets energetic . . October 25, 1999.
- Web site: May 23, 2006 . Warren Buffett buying Harry Norman Realtors . 2022-02-28 . Atlanta Business Chronicle.
- Web site: HomeServices buys Atlanta real estate company . 2022-02-28 . Inman . en-US.
- News: Warren Buffett buys Prudential real estate unit . . . October 30, 2012.
- News: Berkshire Hathaway to shake up real estate franchise landscape . Lew . Sichelman . . September 20, 2013.
- HomeServices of America, Inc. Announces Acquisition of Prudential Fox & Roach, Realtors®/Trident Group . . August 14, 2013.
- News: Fox & Roach finally gets its new name . Natalie . Kostelni . . November 12, 2013.
- News: Berkshire Hathaway Unit Buys RE Broker Prudential Fox . Jake . Simpson . . August 15, 2013.
- HomeServices of America, Inc. Announces Acquisition of Prudential Rubloff Properties . . November 12, 2013.
- HomeServices of America, Inc. Announces Acquisition of Silicon Valley–based Intero Real Estate Services . . May 13, 2014.
- News: Done deal: Buffett's Berkshire finalizes acquisition of Intero to cash in on Silicon Valley . Nathan . Donato-Weinstein . . May 13, 2014.
- News: HomeServices buys Silicon Valley real estate brokerage . Jim . Buchta . . May 13, 2014.
- Berkshire Hathaway HomeServices New England Properties Acquires Westchester County Brokerage Leader . . July 1, 2015.
- News: HomeServices of America buys First Weber, biggest brokerage in Wisconsin . Jim . Buchta . . July 28, 2015.
- News: Warren Buffett Can't Buy Real Estate Agencies Fast Enough . Betsy . Schiffman . . November 17, 2015.
- News: Berkshire Hathaway unit buys big NYC-area real estate firm . Jonathan . Stempel . . January 17, 2017.
- News: Berkshire Hathaway is betting big on New York — will it work? . Miriam . Hall . . January 19, 2017.
- HomeServices of America® Announces the Acquisition of Gloria Nilson & Co. Real Estate . . April 4, 2017.
- News: HomeServices' latest deal takes it to Jersey Shore . Mark . Reilly . . April 5, 2017.
- Berkshire Hathaway HomeServices Signs Marketing Agreement with Juwai.com, China's Largest International Property Portal . . April 17, 2017.
- News: Buffett's Berkshire, Chinese property website Juwai.com team up . Jonathan . Stempel . . April 17, 2017.
- HomeServices of America® Announces Executive Retirement . . June 21, 2017.
- HomeServices of America® Acquires The Long & Foster Companies . . September 7, 2017.
- News: Long & Foster acquired by Buffett affiliate HomeServices of America . Sara . Gilgore . . September 7, 2017.
- Web site: It's Official, Warren Buffett Buys Ebby Halliday Companies. 4 June 2018 . 9 June 2018. https://web.archive.org/web/20190825004907/https://www.nbcdfw.com/news/local/Its-Official-Warren-Buffett-Buys-Ebby-Halliday-Companies-484504901.html. 25 August 2019. live.
- Web site: Prosperity Home Mortgage. December 7, 2021.
- Web site: Edina Realty Fact Sheet. 2022-01-11. Edina Realty. en.
- Web site: 2022-01-11. Minnesota firm acquires Hegg Realtors. 2022-01-11. SiouxFalls.Business. en.
- News: Scarcella . Mike . Stempel . Jonathan . 2023-10-31 . US jury finds realtors liable for inflating commissions, awards $1.78 bln damages . en . Reuters . 2023-11-03.
- Web site: Medium . Seattle . 2023-11-02 . Jury Awards $1.78 Billion In Damages In Realtors' Commission Inflation Case . 2023-11-03 . The Seattle Medium . en-US.
- Web site: Mack . Emily . 2023-10-31 . NAR, Keller Williams, HomeServices of America found guilty of conspiring to inflate commissions - Chicago Agent Magazine National News . 2023-11-03 . Chicago Agent Magazine . en-US.
- Web site: Realtors found liable for $1.8 billion in real estate commissions case.
- Web site: Realtors, brokerages ordered to pay $1.8B in damages in commission collusion ruling . 2023-11-03 . www.bizjournals.com.
- Web site: Kleimann . Brooklee Han, Sarah Wheeler, James . Missouri jury finds Realtors, brokerages guilty of conspiring to inflate commissions . 2023-11-03 . HousingWire . en-US.
- News: Mark . Julian . 31 October 2023 . Jury awards $1.8B in realty case that could shake up brokerage commissions . .
- Web site: 2023-11-01 . Realtors found liable in conspiracy to keep commissions for home sales artificially high . 2023-11-03 . ABC7 Chicago . en.
