The real estate brokerage firm owned by Warren Buffett’s Berkshire Hathaway announced Friday that it has reached a $250 million settlement in a national antitrust lawsuit that is expected to change the way real estate agents are paid.
HomeServices of America, the nation’s largest real estate brokerage, has become the last remaining defendant in a lawsuit against the National Association of Realtors (NAR) and four brokerages.
The settlement lowers the payout after a Kansas City, Missouri, jury in October sided with home sellers who accused the industry of colluding to keep the state’s real estate commissions artificially high. This eliminates the risk of a significantly higher
The jury awarded $1.78 billion in damages, but the judge could have tripled that amount.
The HomeServices settlement requires court approval.
Lawyers for the plaintiff sellers did not respond to requests for comment.
NAR agreed last month to settle a nationwide antitrust lawsuit for $418 million, which won a judge’s preliminary approval on Tuesday.
They also agreed to rewrite the rules for paying buyers and sellers’ agents. Analysts said the changes could reduce fees by at least 25%.
The settlement means NAR and its intermediaries, including HomeServices Anywhere Real Estate and Re/Max, will pay more than $943 million to resolve antitrust claims.
Berkshire Hathaway owns 92% of Berkshire Hathaway Energy, which owns home services as well as various utility, pipeline and renewable energy projects.
HomeServices spokesman Chris Kelly said the brokerage settlement was “the sole obligation of HomeServices, with no participation by the parent company” and would result in an after-tax accounting fee of $140 million.
Berkshire Hathaway Energy is a defendant in similar Kansas City lawsuits against multiple securities companies.
Lawyers for the local plaintiffs did not respond to requests for comment.
Buffett’s Berkshire Hathaway conglomerate ended 2023 with $167.6 billion in cash and equivalents.
