COST - Warren Buffett's Real Estate Firm Coughs Up $250M To Avoid Bigger Payout Over Commissions | Benzinga
HomeServices of America, the real estate firm owned by Warren Buffett, has agreed to pay $250 million to settle a nationwide antitrust lawsuit. The settlement could potentially transform the way real estate agents are compensated.
What Happened: According to a report by the New York Post, HomeServices of America, a subsidiary of Berkshire Hathaway (NYSE: BRK-A), was the last defendant in a case against the National Association of Realtors (NAR) and four brokerages.
After a jury verdict in Kansas City, Missouri, in October, the settlement aims to preempt a potentially larger payout. The verdict sided with home sellers who alleged that the industry had artificially inflated real estate commissions.
The jury ...