Compass Inc. is in advanced discussions to acquire HomeServices of America, the real estate brokerage subsidiary of Warren Buffett’s Berkshire Hathaway. The deal, which has caught the attention of both Wall Street and the housing market, could mark a major shift in Berkshire’s real estate strategy and further cement Compass’s dominance in the sector.
HomeServices of America operates under multiple well-known brands, including Berkshire Hathaway HomeServices, and is one of the largest residential brokerage firms in the country. However, recent financial struggles—including a reported $107 million loss in 2024, partly due to a $250 million legal settlement linked to commission practices—have raised concerns about its long-term profitability.
Compass, which became the largest real estate brokerage by sales volume in 2023, has aggressively expanded through acquisitions and agent recruitment. By acquiring HomeServices, Compass could dramatically increase its market share, but the deal may also face scrutiny from regulators over antitrust concerns given the size of the combined brokerage.
Buffett’s Rare Sell-Off
Warren Buffett’s Berkshire Hathaway is well known for its buy-and-hold investment philosophy, making this potential sale particularly intriguing. Berkshire has historically held onto its acquisitions long-term, so a decision to offload HomeServices could indicate a strategic shift within the conglomerate.
Some analysts speculate that Berkshire may be streamlining its operations in preparation for a future leadership transition, as Vice Chairman Greg Abel is expected to take over Buffett’s role when he eventually steps down.