Edina Realty stakes its first dealership in South Dakota by acquiring Hegg Realtors, a Sioux Falls-based brokerage house that has been in existence for nearly 80 years.
The deal will add 200 agents to Edina’s roster and give the company a foothold in a rapidly growing market.
“We have always sought to increase our presence in larger regional markets like Sioux Falls,” said Greg Mason, President and CEO of Edina Realty Home Services. “The more we talked and got to know each other, we knew this was a great fit for both companies.”
The deal was announced Tuesday morning shortly before Minneapolis-based HomeServices of America announced the purchase of three additional out-of-state brokerage firms and a national moving company.
HomeServices, a subsidiary of Berkshire Hathaway, is a holding company that includes Edina Realty and other brokerages in 33 states. In 2020, the company was the country’s largest brokerage house in terms of transactions, but second behind Realogy Holding Group, owner of Coldwell Banker Realty, based on total sales volume, according to a 2021 brokerage report from RealTrends. .
The five transactions were closed at the end of December and crown what was otherwise just an ordinary year for consolidations and acquisitions of brokerage companies. The terms were not disclosed.
These new companies will add 1,400 sellers, 15,000 transactions and nearly $ 8 billion in closed sales volume to HomeServices’ 2021 portfolio.
The latest acquisitions include Bennion Deville Homes, which closed nearly 4,400 deals and $ 3.1 billion in sales in Coachella Valley, California; Berkshire Hathaway HomeServices Alliance Real Estate and Alliance Title Group, which has completed 4,000 transactions and $ 1.3 billion in sales in the St. Louis area and Berkshire Hathaway HomeServices Beach Properties of Florida, which is based in Santa Rosa Beach and has closed more than 2,700 transactions and has $ 2.1 billion in sales.
The acquisition of Joe Moholland Moving, which operates primarily in Virginia, Maryland and the Washington DC area but has an international presence, will allow HomeServices to reinforce what it calls a commitment to a “customer to customer” business model. life “.
Increasingly, real estate brokerage firms have focused on offering affiliate services, including title, mortgage, and insurance, in an effort to streamline the buying and selling process. Such offers also create a source of additional income for real estate companies who have traditionally relied on a slice of an agent’s sales commission and other fees.
HomeServices, which is based in downtown Minneapolis, has continued to expand its presence across the country, primarily through the acquisition of established and well-known local businesses that have strong brand recognition. As is the case with the acquisition of Hegg Realty by Edina Realty, HomeServices generally retains the local brand and leadership.
After making just a few acquisitions earlier in 2021, the December deals will dramatically increase HomeService’s presence in the United States
These transactions are the first local brokerage acquisition announcement of 2022 and they come after a 2021 sluggishness for such transactions. Earlier in 2021, HomeServices announced the acquisition of Berkshire Hathaway HomeServices Hudson Valley Properties, based in LaGrangeville, New York. And in July, the company announced it had acquired Americana Holdings, which operates in Arizona, California and Nevada.
Twin Cities-based Coldwell Banker Realty also had a 2021 intermediary for the acquisition. In April, the company purchased Real Services Inc., an independent subsidiary of Coldwell Banker known as Coldwell Banker East West Realty. This agreement included 60 agents in seven offices in northern Minnesota and western Wisconsin.
Edina Realty CEO Greg Mason said he expects 2021 to be a busier year for acquisitions for his company and others.
“When you have a really good market for several years it becomes onerous for a lot of companies and they start looking for exit strategies,” he said. “The challenges of running a brokerage over the past two years have been a challenge for many small businesses. “