As we enter into 2014, the blue-and-white “for sale” signs from Prudential Network Realty will eventually become a part of the past. In their place will be the Berkshire Hathaway HomeServices signs in the colors of cabernet and cream.
The company has agreed to become a Berkshire Hathaway HomeServices affiliate, although it will still be independently operated and owned by Linda Sherrer, the company’s CEO. HomeServices of America Inc. and Brookfield Asset Management were merged at the end of 2012, and both companies are owned by Berkshire Hathaway Inc., Warren Buffett’s holding company. In December 2011, Brookfield Asset Management acquired Prudential Real Estate, but the networks continued to operate as separate entities.
The home services affiliate agreement is going to bring Sherrer’s agent’s listings global exposure. The reach of Prudential was very limited to the United States of America only. This deal could be a boon for the luxury home listings for the company, said VP Christie Budnick.
“When you look at the brand Berkshire Hathaway, it’s definitely more well known in the upper end,” said Budnick.
Sherrer chose not to share a dollar amount for the affiliate license agreement, but we can tell you that it is a percentage of each transaction. We did learn that the company has invested about $750,000-$1 million in advertising, marketing and staff to make the transition to the Berkshire Hathaway brand go over smoothly. They will be rolling out the new signage at the end of January 2014.
“It’s a new day, and it’s a great time as the industry comes back really good and strong,” said Sherrer. We looked at all of our options – we looked at going independent, but Berkshire Hathaway is really in sync with the qualities that are important to us.”
In 2012, Prudential sold $583.18 million in lots and homes we learned according to Business Journal data.