Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the Inman Community and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!
Fast-growing brokerage Compass is currently in the process of buying Berkshire Hathaway HomeServices.
Rumors of the deal spread rapidly this week, with multiple sources telling Inman it was imminent. Inman staffers spent much of Wednesday and Thursday reaching out to various individuals who privately discussed the deal, but declined to go on the record.
Robert Reffkin
The Wall Street Journal first reported the deal publicly. According to that report, which cited anonymous sources, the deal is set to close “soon,” though a final price has not yet been agreed upon.
Inman reached out to Compass and Compass CEO Robert Reffkin, as well as to BHHS, multiple times Thursday but did not immediately receive a response. Late Thursday after Inman published, HomeServices of America President and CEO Gino Blefari strongly denied the parties were in talks.
Assuming the deal does close, it would combine some of the largest real estate brands in the world. Compass boasted more than 33,000 agents as of the end of 2024, while BHHS has 37,700.
For several years now, Compass has also reigned as the largest brokerage in the U.S. by sales volume, and as of Thursday afternoon had a market cap of approximately $5 billion. Compass ended last year with $223.8 million in cash and cash equivalents.
The New York-based brokerage has additionally been among the fastest-growing companies in real estate. Founded in 2012, the company has made a series of strategic acquisitions over the years, including in 2024 when it picked up Gulf Coast giant Latter & Blum and in December when it announced a deal to nab @properties Christie’s International Real Estate.
Meanwhile, BHHS is based in Minnesota, and an affiliate of Berkshire Hathaway Energy. The firm has 48 separate brand names and 820 brokerage offices in 34 states plus Washington, D.C.
HomeServices’ franchise network includes 270 franchisees and over 1,400 brokerage offices. There are approximately 44,700 third-party agents under two brands.
Franchisees pay fees to Berkshire Hathaway in exchange for the right to use the Berkshire Hathaway HomeServices or Real Living brand names, along with other support and services.
News of the negotiations between the companies was notable because it would represent a shift in strategy from Warren Buffett’s Berkshire Hathaway conglomeration. HomeServices is a subsidiary of Berkshire Hathaway Energy, a company silo that otherwise exclusively includes energy production and transmission companies. Berkshire Hathaway, Inc. also holds other ancillary real estate services and the insurance company GEICO.
Victor Lund
“Berkshire Hathaway has enough money to buy Compass with a stroke of a check and they wouldn’t even notice,” said Victor Lund, partner with Wav Group. “If [Berkshire Hathaway Energy] is committed to the business, they would buy Compass and take them private.”
News of the deal between Compass and BHHS comes amid a flurry of merger and acquisition activity. Aside from Compass’ own deals in 2024, earlier this month private equity firm Stone Point Capital acquired a major stake in Keller Williams. A week after that, Rocket announced plans to acquire Redfin. If Compass does close with BHHS, it would be the third industry-reshuffling deal this year.
In addition to making a series of acquisitions lately, Compass has also become a prominent player in the debate over the National Association of Realtors Clear Cooperation Policy. Reffkin has have repeatedly criticized the rule, including Wednesday when he appeared on stage at Inman on Tour Nashville.
The new deal with BHHS is just one of several Compass is rumored to be pursuing right now — though not everyone is apparently thrilled to join the House of Reffkin. When Inman reached out on Thursday to Vanessa Bergmark — CEO of Bay Area indie Red Oak Realty — she quickly indicated she had no interest in becoming Compass’ next target.
“You could quote me on this,” Bergmark told Inman, “I would never sell to Compass.”
This story was updated March 14 to reflect HomeServices of America CEO Gino Blefari’s denial that a deal is in the works.
