There is a new development in this story.
Compass could be continuing its period of expansion with a massive growth spurt in the form of a deal to buy Berkshire Hathaway HomeServices.
The Wall Street Journal first reported the residential giant was in talks for the country’s fourth-largest brokerage, according to RealTrends.
Terms of the deal have not yet been reported.
The move would be a major step in what has become a 12-month period of rapid consolidation for Compass, the nation’s largest brokerage by deal volume.
Compass sent shockwaves through the industry last year when it announced its $444 million deal to acquire Christie’s International Real Estate and @properties. @properties was the eighth-largest brokerage in the country before the acquisition, according to RealTrends. Robert Reffkin’s firm also scooped up local brokerages in Tennessee and the Gulf Coast last year.
Compass’ deals for smaller firms and large teams have contributed to its headcount and private listings network. In the firm’s most recent earnings call, Reffkin said 7,500, or 35 percent of the company’s listings, were off-MLS. In February, more than half of new Compass listings started as private exclusives or were available only on Compass.com, which are part of the company’s latest consumer marketing strategy.
The firm also notched its most successful financial year since going public in 2024, with its share price more than doubling in the last 12 months as it reported its first cash-flow positive year.
BHHS had 820 brokerage offices and 270 franchises at the end of 2024.
The real estate arm of Warren Buffett’s conglomerate entered the New York City market in 2017 but has had a difficult time gaining a foothold since then, ranking 18th in the TRD’s most recent brokerage rankings.
Elsewhere in the United States, BHHS Chicago boasts a roster of more than 1,300 real estate professionals.
Berkshire Hathaway HomeServices acquired Ron Shuffield’s EWM Realty International in 2003. The Coral Gables, Florida-based firm, now called BHHS EWM, has more than 700 agents and employees across seven offices in South Florida.
HomeServices made headlines last year when it agreed to pay $250 million to settle antitrust lawsuits accusing it of colluding with the National Association of Realtors and other major brokerages to hike agents’ pay. The settlement was the largest payout offered by the brokerage defendants, outpacing the $58 million deal reached by Compass.