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HomeServices of America

From Wikipedia, the free encyclopedia
HomeServices of America
IndustryReal estate
Founded1998; 26 years ago (1998)
HeadquartersMinneapolis, Minnesota
ServicesBrokerage
Mortgage
Insurance
Title and escrow
Franchising
Corporate relocation
OwnerBerkshire Hathaway
Number of employees
6,000
ParentBerkshire Hathaway Energy
Websitewww.homeservices.com Edit this on Wikidata

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

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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]

[edit]

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][37]

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.[37][41] They raised concerns about the high commissions they were obligated to pay to the home buyers' brokers between 2015 and 2022.[41] The trial lasted two weeks, after which the jury awarded the plaintiffs $1.78 billion in damages.[35] The defendants in the lawsuit included Berkshire-owned HomeServices of America and its two subsidiaries, along with Keller Williams Realty.[35][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.[35]

References

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  1. ^ SALPUKAS, AGIS (April 7, 1998). "MidAmerican to Buy Real Estate Group". The New York Times.(subscription required)
  2. ^ Kerch, Steve (May 24, 1998). "What America's Homes Need Is A Conglomerate". Chicago Tribune.
  3. ^ "Edina Realty sold to energy company". American City Business Journals. April 6, 1998.
  4. ^ Dooley, Tom (2011-04-28). "Industry Watch: HomeServices.com Moves into the Spotlight". Realtor Magazine. Retrieved 2019-07-10.
  5. ^ "Long Realty acquired". Phoenix Business Journal. Retrieved 2019-07-10.
  6. ^ Lipin, Steven; Miller, James P. (October 25, 1999). "Investors Led by Buffett to Buy Iowa's MidAmerican Energy". The Wall Street Journal.(subscription required)
  7. ^ "Buffett gets energetic". CNN Money. October 25, 1999.
  8. ^ "Warren Buffett buying Harry Norman Realtors". Atlanta Business Chronicle. May 23, 2006. Retrieved 2022-02-28.
  9. ^ "HomeServices buys Atlanta real estate company". Inman. Retrieved 2022-02-28.
  10. ^ "Warren Buffett buys Prudential real estate unit". USA Today. Associated Press. October 30, 2012.
  11. ^ Sichelman, Lew (September 20, 2013). "Berkshire Hathaway to shake up real estate franchise landscape". Los Angeles Times.
  12. ^ "HomeServices of America, Inc. Announces Acquisition of Prudential Fox & Roach, Realtors®/Trident Group" (Press release). Business Wire. August 14, 2013.
  13. ^ Kostelni, Natalie (November 12, 2013). "Fox & Roach finally gets its new name". American City Business Journals.
  14. ^ Simpson, Jake (August 15, 2013). "Berkshire Hathaway Unit Buys RE Broker Prudential Fox". Law360.
  15. ^ "HomeServices of America, Inc. Announces Acquisition of Prudential Rubloff Properties" (Press release). Business Wire. November 12, 2013.
  16. ^ "HomeServices of America, Inc. Announces Acquisition of Silicon Valley–based Intero Real Estate Services" (Press release). Business Wire. May 13, 2014.
  17. ^ Donato-Weinstein, Nathan (May 13, 2014). "Done deal: Buffett's Berkshire finalizes acquisition of Intero to cash in on Silicon Valley". American City Business Journals.
  18. ^ Buchta, Jim (May 13, 2014). "HomeServices buys Silicon Valley real estate brokerage". Star Tribune.
  19. ^ "Berkshire Hathaway HomeServices New England Properties Acquires Westchester County Brokerage Leader" (Press release). Business Wire. July 1, 2015.
  20. ^ Buchta, Jim (July 28, 2015). "HomeServices of America buys First Weber, biggest brokerage in Wisconsin". Star Tribune.
  21. ^ Schiffman, Betsy (November 17, 2015). "Warren Buffett Can't Buy Real Estate Agencies Fast Enough". Forbes.
  22. ^ Stempel, Jonathan (January 17, 2017). "Berkshire Hathaway unit buys big NYC-area real estate firm". Reuters.[dead link‍]
  23. ^ Hall, Miriam (January 19, 2017). "Berkshire Hathaway is betting big on New York — will it work?". The Real Deal.
  24. ^ "HomeServices of America® Announces the Acquisition of Gloria Nilson & Co. Real Estate" (Press release). Business Wire. April 4, 2017.
  25. ^ Reilly, Mark (April 5, 2017). "HomeServices' latest deal takes it to Jersey Shore". American City Business Journals.
  26. ^ "Berkshire Hathaway HomeServices Signs Marketing Agreement with Juwai.com, China's Largest International Property Portal" (Press release). Business Wire. April 17, 2017.
  27. ^ Stempel, Jonathan (April 17, 2017). "Buffett's Berkshire, Chinese property website Juwai.com team up". Reuters.
  28. ^ "HomeServices of America® Announces Executive Retirement" (Press release). Business Wire. June 21, 2017.
  29. ^ "HomeServices of America® Acquires The Long & Foster Companies" (Press release). Business Wire. September 7, 2017.
  30. ^ Gilgore, Sara (September 7, 2017). "Long & Foster acquired by Buffett affiliate HomeServices of America". American City Business Journals.
  31. ^ "It's Official, Warren Buffett Buys Ebby Halliday Companies". 4 June 2018. Archived from the original on 25 August 2019. Retrieved 9 June 2018.
  32. ^ "Prosperity Home Mortgage". Retrieved December 7, 2021.
  33. ^ "Edina Realty Fact Sheet". Edina Realty. Retrieved 2022-01-11.
  34. ^ "Minnesota firm acquires Hegg Realtors". SiouxFalls.Business. 2022-01-11. Retrieved 2022-01-11.
  35. ^ a b c d e Scarcella, Mike; Stempel, Jonathan (2023-10-31). "US jury finds realtors liable for inflating commissions, awards $1.78 bln damages". Reuters. Retrieved 2023-11-03.
  36. ^ Medium, Seattle (2023-11-02). "Jury Awards $1.78 Billion In Damages In Realtors' Commission Inflation Case". The Seattle Medium. Retrieved 2023-11-03.
  37. ^ a b c d Mack, Emily (2023-10-31). "NAR, Keller Williams, HomeServices of America found guilty of conspiring to inflate commissions - Chicago Agent Magazine National News". Chicago Agent Magazine. Retrieved 2023-11-03.
  38. ^ "Realtors found liable for $1.8 billion in real estate commissions case".
  39. ^ "Realtors, brokerages ordered to pay $1.8B in damages in commission collusion ruling". www.bizjournals.com. Retrieved 2023-11-03.
  40. ^ Kleimann, Brooklee Han, Sarah Wheeler, James. "Missouri jury finds Realtors, brokerages guilty of conspiring to inflate commissions". HousingWire. Retrieved 2023-11-03.{{cite web}}: CS1 maint: multiple names: authors list (link)
  41. ^ a b Mark, Julian (31 October 2023). "Jury awards $1.8B in realty case that could shake up brokerage commissions". The Washington Post.
  42. ^ "Realtors found liable in conspiracy to keep commissions for home sales artificially high". ABC7 Chicago. 2023-11-01. Retrieved 2023-11-03.
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