HomeServices of America Reaches Groundbreaking $250 Million Antitrust Settlement.
Warren Buffett’s Real Estate Brokerage Paves Way for Industry-Wide Commission Reforms
HomeServices of America, a Berkshire Hathaway company, has announced a landmark $250 million settlement in a major antitrust lawsuit, signalling significant impending changes to the real estate commission structure in the United States. This settlement concludes HomeServices’ involvement as the last defendant in a high-profile case alongside the National Association of Realtors (NAR) and other major brokerages.
In a decisive move, HomeServices of America has agreed to a $250 million settlement to resolve nationwide antitrust litigation, potentially altering how real estate agents are compensated across the country. This development follows a jury verdict in Kansas City, Missouri, which was found in favour of home sellers, who claimed that the industry had conspired to keep real estate commissions artificially high.
The settlement, still pending court approval, marks the end of HomeServices’ participation in a series of lawsuits involving the NAR and four other brokerages. According to HomeServices spokesperson Chris Kelly, this settlement is an isolated obligation of HomeServices, requiring a $140 million after-tax accounting charge but involving no other Berkshire Hathaway entities.
“This settlement reflects our commitment to transparency and fairness in real estate transactions. It mitigates the risk of a higher payout and paves the way for more competitive commission rates, benefiting consumers nationwide,” said Chris Kelly.
Following this settlement and previous agreements by the NAR, the total compensation to address these antitrust claims has exceeded $943 million. The NAR has also committed to revising the rules governing the payment of buyers’ and sellers’ agents, which analysts believe could reduce commissions by at least 25%.
