Compass in Advanced Talks to Acquire HomeServices

Compass, a prominent U.S. brokerage and the largest by sales volume, is reportedly in advanced negotiations to acquire HomeServices of America, a major market player. This potential merger, amid a backdrop of declining home sales and industry consolidation, could significantly impact real estate listing practices, particularly relating to private or 'pocket' listings favored by Compass. Such listings, temporarily exclusive to brokerage websites before reaching public portals, challenge existing industry rules. Compass CEO Robert Reffkin advocates for revisiting these rules, facing opposition from Zillow CEO Jeremy Wacksman who supports maintaining them. Compass’s strategy of expansion through acquisitions is exemplified by its recent $444 million purchase of @properties Christie's International Real Estate. The company's aggressive growth has seen its agent base increase significantly, though financial performance remains mixed with a reduced net loss. HomeServices of America, the fourth-largest brokerage, includes Berkshire Hathaway HomeServices with over 50,000 agents and substantial sales volume, highlighting the significant impact this merger could potentially have on the U.S. real estate landscape.