The brokerage giant “is in advanced talks” to buy HomeServices of America, the real estate arm of Warren Buffet’s empire, the Wall Street Journal reports.
Compass’ appetite for brokerage competitors continues as the company appears to be pursuing another large player in the residential real estate space.
According to the Wall Street Journal, Compass “is in advanced talks” to acquire HomeServices of America, one of its top competitors and the parent of Berkshire Hathaway HomeServices.
The news comes at a time when Compass has been making waves in the industry with its push to expand its private listing network, which CEO Robert Reffkin said featured roughly 7,500 listings during the company’s February earnings call, and as the National Association of Realtors is expected to make a decision on whether to maintain, modify or outright repeal the Clear Cooperation Policy — of which Reffkin has been a vocal critic.
A Compass representative did not immediately respond to a request for comment.
A series of acquisitions and recruiting wins
Compass has been busy pursuing acquisitions and bringing in large teams to the brokerage, which is based in New York City. In January it finalized its $444 million acquisition of Chicago-based @properties Christie’s International Real Estate.
Attracting teams has paid dividends in overall agent count, according to Compass’ fourth quarter earnings report. At the end of 2024 it had 17,752 principal agents, up nearly 21% compared to the end of 2023.
That led to $1.4 billion in revenue during the quarter, up nearly 26% year-over-year while most of the industry remained in the home sales doldrums. The company has maintained its position as the largest residential real estate brokerage in the U.S. by sales volume for the past three years.
It’s been quite the turnaround for Compass, which was suffering a net loss of $602 million in 2022, trimming that down to $154.5 million in 2024. The company has been slashing expenses, improving its platform and recruiting agents as it looks to gain market share.
Compass CEO Robert Reffkin, who was ranked the No. 1 most powerful leader in real estate in this year’s SP 200 list, has aggressively pushed for private listings and the elimination of the Clear Cooperation Policy.
BHHS: A key piece of the Warren Buffet empire
The proposed acquisition of the Berkshire Hathaway franchise and brokerage company represents a huge step in Compass’ evolution. BHHS has more than 50,000 agents and closed nearly $127 billion in sales volume in 2023. It also has more than 1,500 offices around the world.
Gino Blefari has been the CEO of HomeServices of America since 2019, overseeing the company’s family of real estate brands including the Berkshire Hathaway HomeServices and Real Living Real Estate franchise networks. HomeServices of America also owns and operates brokerages across the United States, including Edina Realty, Ebby Halliday, Long & Foster, and more.
But HomeServices of America and BHHS are part of an even larger empire — Berkshire Hathaway Energy, led by Warren Buffet — raising the question of what an acquisition would mean for the Gibson commissions lawsuit. Compass reached a $57.5 million settlement in the case, which was finalized in October, but Berkshire Hathaway Energy — which was added to the lawsuit in 2024 — remains a defendant. Separately, HomeServices reached a settlement agreement in the Sitzer/Burnett case.
Following the final approval of the HomeServices deal in late November, lead plaintiff attorney Michael Ketchmark said he was ready to pursue the remaining Gibson defendants, calling out Buffet’s company specifically: “We’re moving forward against Berkshire Hathaway Energy, and we’re excited to continue to litigate that case. And if we can’t get it resolved, we’ll be back in this very courthouse and going to trial and holding them accountable if necessary.”
