HomeServices of America Inc., a Berkshire Hathaway affiliate based in Minneapolis, has acquired The Long & Foster Cos Inc., the largest private residential real estate company in the U.S. in terms of sales volume.
The acquisition of the Chantilly-based Long & Foster, announced Thursday, includes its family of companies, such as Long & Foster Real Estate and its affiliated business lines in mortgage, settlement services, insurance, and property management. Financial terms of the transaction were not disclosed.
Wes Foster, Long & Foster’s co-founder, will remain with the company as chairman emeritus. Jeff Detwiler, Long & Foster’s current president and CEO, will assume the role of chief executive officer, managing the day-to-day operations.
“Finding the right partner to maintain the legacy, culture and integrity of Long & Foster was of utmost importance to me,” Foster said in a statement. “… Joining HomeServices ensures that our history of market leadership and industry expertise continues.”
Founded in 1968 by Wes Foster and Henry Long, Long & Foster’s companies have grown to rank among the nation’s foremost real estate and financial-services companies.
Long & Foster Real Estate has about 11,000 agents in more than 230 offices in the mid-Atlantic and beyond. In 2016, Long & Foster Real Estate said it had nearly $29 billion in sales volume and more than 81,000 home-sale transactions. Its Prosperity Mortgage unit originated $3.3 billion in home loans, while its settlement services companies closed more than 20,000 title and escrow transactions.
The acquisition expands HomeServices’ presence in the mid-Atlantic to Washington, D.C., and Baltimore and extends its national footprint to Virginia and West Virginia.
Adding the Long & Foster brand also positions HomeServices to be the nation’s largest home-ownership services provider based on transactions, according to the 2017 Real Trends 500 report. The company is the majority owner of the Berkshire Hathaway HomeServices, Prudential Real Estate and Real Living Real Estate franchise networks.
The deal means HomeServices now has more than 41,000 real estate professionals operating in 30 states and the District of Columbia. The company said it expects this year for sales associates to facilitate more than $123 billion in residential real estate sales, nearly 340,000 home sale transactions and nearly 200,000 mortgage, insurance, title, and escrow transactions.
“This is an important transaction for HomeServices, and we are incredibly proud to have The Long & Foster Cos. join the HomeServices family,” Ron Peltier, HomeServices’ chairman and CEO, said in a statement.