Warren Buffett’s Berkshire Hathaway Real Estate Brokerage Reaches $250 Million Settlement in Antitrust Litigation

The real estate industry is in for a significant shake-up as Berkshire Hathaway’s HomeServices of America, the largest US real estate brokerage, settles a nationwide antitrust lawsuit for $250 million. This settlement follows a jury award of $1.78 billion in damages, with the potential for tripling by a judge.

The lawsuit accused the industry, including the National Association of Realtors and four brokerages, of conspiring to keep real estate commissions artificially high in states like Kansas City. HomeServices’ settlement, pending court approval, is expected to change how real estate agents are paid and could lower commissions by at least 25%.

With this settlement, the total amount paid by the NAR and other brokerages, including HomeServices Anywhere Real Estate and Re/Max, to resolve antitrust claims exceeds $943 million. Berkshire Hathaway, which owns 92% of HomeServices, faces continued legal challenges in a similar case in Kansas City.

This development comes as Berkshire Hathaway, led by Warren Buffett, ended 2023 with a staggering $167.6 billion in cash and equivalents. The real estate industry is poised for significant transformations as a result of this settlement, potentially impacting how agents and brokerages conduct business moving forward.