Press Release - 12.16.08

 

HomeServices of America, Inc., a Berkshire Hathaway Affiliate, Announces Acquisition of Raleigh-Based York Simpson Underwood

 

HomeServices to Merge York Simpson Underwood With Prudential Carolinas Realty, More Than Doubling its Existing Market Share and Number of Sales Agents in North Carolina’s Triangle Area

MINNEAPOLIS (December 16, 2008) – HomeServices of America, Inc., a Berkshire Hathaway affiliate, today announced the acquisition of Raleigh-based York Simpson Underwood, one of North Carolina’s most respected residential real estate brokerage firms and the company’s 20th acquisition.

One of the country’s long-standing residential real estate firms, York Simpson Underwood has 250 agents throughout six offices in Raleigh, Cary, Chapel Hill and Pinehurst/Southern Pines, North Carolina. The company’s volume of closings for 2007 was more than $717 million.

HomeServices will merge York Simpson Underwood with its existing residential real estate firm, Prudential Carolinas Realty. The new, Raleigh-based organization will be called Prudential York Simpson Underwood Realty.

The merger doubles HomeServices’ market share, as well as the number of sales agents of the combined companies within North Carolina’s renowned Triangle Area (Raleigh-Durham). Prudential Carolinas Realty will continue to operate as the HomeServices brand in the Triad and Charlotte markets.

Both companies are leaders in sales of high-end homes among the top general brokerage firms in the Triangle. Among those firms, York Simpson Underwood ranks first in average home sales price and Prudential Carolinas Realty ranks No. 2. The combined companies will rank No. 1 in active listing volume within the Triangle.

The HomeServices model focuses on companies that are market-leaders, such as York Simpson Underwood, with long-standing traditions for excellence. The average age of a HomeServices operating company is more than 55 years.

“York Simpson Underwood is a gem among national residential real estate firms,” says Ron Peltier, chairman and CEO of HomeServices. “This transaction exemplifies our vision of joining with companies that share our core values and strengthening those brands through our affiliation, leaving in place the people who built the companies and giving them the freedom to operate in local markets they know best”

“This merger creates the premier Triangle real estate company,” adds Smedes York, chairman of the combined company. “We are combining two strong firms within the Triangle into an even stronger organization. By joining forces with HomeServices, we will be unmatched in our ability to serve the real estate and corporate relocation needs of new and existing clients in the Triangle. Our commitment is to make this merger seamless for our customers, who will continue to be served by their existing agents.”

York, a former city council member and mayor of Raleigh, whose family has been an integral part of the city’s development since 1910, will be joined in heading the newly named Prudential York Simpson Underwood Realty by Sam Simpson and Speck Underwood, who will serve as co-chief executive officers of the combined company.

“This combination of two of the highest-quality companies in Carolinas real estate is truly the best of both worlds,” said Tommy Camp, president and chief executive officer of Prudential Carolinas Realty. “We have the strong corporate backing of HomeServices – a Berkshire Hathaway affiliate and the leading national home services provider – and two deeply rooted local companies with intimate knowledge of the Triangle, one of the most sought-after addresses in America.”

HomeServices of America
HomeServices of America, Inc. based in Minneapolis, Minn., is the second-largest homeownership service provider in the United States. Owned by MidAmerican Energy Holdings Company, an affiliate of Berkshire Hathaway Inc., HomeServices’ operating companies offer integrated real estate services, including brokerage services, mortgage originations, title and closing services, property and casualty insurance, home warranties and other homeownership services. HomeServices Relocation, LLC is the full-service relocation arm of HomeServices of America which provides every aspect of domestic and international relocation to corporations around the world. HomeServices operates in 19 states under the following residential real estate brand names: Carol Jones REALTORS; CBSHOME Real Estate; Champion Realty Inc.; Edina Realty; EWM REALTORS; Harry Norman, REALTORS; HOME Real Estate;Huff Realty; Iowa Realty; Jenny Pruitt and Associates, REALTORS; Long Companies; Prudential California Realty; Prudential Carolinas Realty; Prudential First Realty; RealtySouth; Rector-Hayden REALTORS; Reece & Nichols; Roberts Brothers Inc.; Semonin REALTORS and Woods Bros. Realty. Information about HomeServices and the locations of its subsidiary companies is available at www.homeservices.com.

About York Simpson Underwood
York Simpson Underwood, headquartered in Raleigh, is a locally owned and operated, full-service real estate company with 250 sales agents and six offices in Raleigh, Cary, Chapel Hill and Southern Pines. The York family has been involved with real estate in the Triangle area since 1910. York Simpson Underwood has been named the Triangle’s best real estate company by Metro Magazine for seven years. Services include home buying and selling, mortgages, property management/commercial services, construction and relocation, title and home protection services. It is part of the Leading Real Estate Companies of the World relocation network and the exclusive regional affiliate for Christie’s Great Estates. See www.ysuhomes.com.

About Prudential Carolinas Realty
Prudential Carolinas Realty, headquartered in Winston-Salem, is a full-service residential real estate market leader in North Carolina’s three major metro areas of the Triangle, Triad and Charlotte area, with more than 800 sales professionals and 14 offices, and the region’s most comprehensive property search engine with more than 50,000 online home listings. Services include title insurance, home warranty, mortgage and relocation services. In the Triangle, its 250 agents serve customers in five offices in Raleigh, Cary, Chapel Hill and Durham. Prudential Carolinas Realty is owned by HomeServices of America, Inc. and part of The Prudential Real Estate Affiliates, with more than 64,000 sales associates and 2,100 offices across the United States., operating under the 125-year-old Prudential brand name. Its award-winning relocation and corporate services teams are called on by many Fortune 500 companies to assist their transferees. See www.PruCarolinas.com