HomeServices owns and operates companies in 19 states with nearly 400 branch offices and more than 20,000 agents. It boasts a fully integrated, full-service real estate business model; probably more so than any other company on the list. The company has enjoyed huge successes in creating a one-stop shopping model offering brokerage services along with mortgage, title, escrow and insurance services. In 2006 they concluded 182,786 transactions with closed sales volume of over $58 billion.
Through MidAmerican Energy, HomeServices is also Berkshire Hathaway Company and thus part of the Warren Buffet family of businesses. The company is a member of Leading RE and its ownership structure is more akin to that of Realogy’s National Realty Trust (see below) than a franchise. Also, instead of building a national brand like most real estate companies and franchises do (e.g., Realogy, RE/MAX, Prudential, etc.), HomeServices has pursued an unconventional strategy of buying local real estate companies and keeping their brands intact. Thus the power of HomeServices’ business model lies within acquiring market-leading local or regional brands. For example they operate under such local names as: Edina Realty; Harry Norman Realtors; Reece and Nichols; Jenny Pruitt & Associates; and Realty South.
What makes HomeServices’ acquisitions even more interesting is that not only have they purchased what are commonly referred to as “independents” – companies that are not affiliated with a national real estate franchise – but have also included franchise companies such, as Prudential California Realty, Prudential Carolinas Realty and First Realty / GMAC, as part of their expansion. |
