Warren Buffett's Real Estate Brokerage Is Now No. 2 In America
Residential brokerage HomeServices of America Inc. has grown exponentially since it was acquired by Warren Buffett's Berkshire Hathaway Inc. in 2000.
The number of deals the company brokered between homebuyers and sellers grew 34% last year, propelling HomeServices to the No. 2 residential brokerage spot in the country, trailing Realogy Holdings Corp., Bloomberg reports. Part of this growth is attributed to a number of recent acquisitions, including the purchase of rival firm Long & Foster Cos. last year.
Even with the jump in close rates last year, Buffett told shareholders more growth is on the horizon since the company only facilitated approximately 3% of the home-brokerage business in the U.S. this year, according to Bloomberg.
“That leaves 97% to go,” Buffett said in his annual letter to shareholders.