by Lillian Dickerson | Apr 23, 2025 | Industry, News Feed
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HomeServices of America veteran Chris Kelly was appointed CEO of the real estate company last week as Gino Blefari stepped down into an advisory role.
Kelly brings a wealth of experience to the position, with 25 years in the industry now, 18 of which have been spent at HomeServices.
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Kelly has the credentials, but adopts the role of CEO at a challenging time. Industry groups and organizations have split into factions over how to market and sell homes while balancing the needs of consumers and agents alike. The market has been among the most tumultuous agents have dealt with in recent years, and uncertainty over tariffs is threatening to push consumers to the sidelines of the transaction yet again.
With these industry shifts in mind, Inman recently spoke with Kelly to get his take — and to set the record straight on recent reports floating around about Compass potentially having an interest in purchasing Berkshire Hathaway HomeServices. Here’s what the CEO had to say, edited for brevity and clarity.
Inman: You’ve been with HomeServices for quite a while now. When you started at the company, did you ever dream that you would one day become CEO?
Chris Kelly: It’s funny. It’s not something that I personally started off [thinking]. My first role was in 2007 as general counsel of ReeceNichols, and I was really, really fortunate to work under the leadership of [then-CEO] Jerry Reece at the time. And I remember Jerry Reece at one point told [then-CEO of HomeServices] Ron Peltier, ‘Hey, Chris could run Reese Nichols for us someday. Heck, he could run all of HomeServices.’
It was the confidence he showed. And he said, ‘Gosh, if Jerry believes in you, then maybe that’s something you can work towards.’ And 18 years later, here we are. But I’ve just been really, really lucky to have some great mentors and some great leaders throughout HomeServices over my 18 years.
How rewarding. Do you have a particular vision in mind for the future of the company, and Berkshire Hathaway HomeServices specifically?
On the broader scale of HomeServices, there’s two things that we really want to focus on. They obviously kind of go hand-in-hand, but one of those is, we really want to make sure that we work towards creating a unified backbone across HomeServices. Our past model, everyone knows has been more of a pure holding company. Buy companies, completely leave them alone. And what we want to do is retain the local branding, the local culture, everything that makes our companies very special in their unique markets.
But we also understand, real estate has shifted. We want to make sure our agents are able to compete at a national scale as well. So we want to make sure we build a backbone to where, across HomeServices, our agents and consumers are working from a unified set of tools and technologies that allows them to better connect with themselves across the country.
And this ties into the second point, which is really leaning into what has always been in our DNA, which is the full-service brokerage model of brokerage, mortgage, title and insurance. Physically, I think we do that better than anybody else because we wholly own those different operations. If you walk into one of our real estate offices, all of those services are under one roof. But we also know that real estate has been digitized and we want to make sure that experience that we physically have always provided can also be provided in that digital world as well.
So, when I’m working with a consumer as an agent, the ability to have all of those services together in one place, from a digital standpoint, also becomes part of the HomeServices model moving forward. So those are two of the really big things we want to focus on moving forward.
Very nice. I want to ask you about something that happened a couple weeks ago — there was some talk about a potential deal [between Berkshire Hathaway HomeServices] and Compass. Was there anything behind that? Were you all actually in discussions with them?
What happens is, when you work for a company the size of Berkshire and any big conglomerate like that, I’m sure people call all the time with questions, you know, ‘Are you interested in this? Are you interested in that?’ We do that at a brokerage level as well. We have conversations with folks all the time. So, where conversations turned into stories? I’m not sure.
But the good thing is, we can say there is no contemplated, no pending transaction with Compass or any third party at this point. And we’re hopeful that these management transitions that we’re making are kind of reflective of our parent entity’s complete, full faith in us moving forward.
I see. And Gino Blefari’s stepping down didn’t have anything to do with that?
Gino, to his credit, this is something that he had thought about and he wanted to make sure that he did it at the right time for the enterprise. We really went through a pretty challenging time over the last year-and-a-half — the whole industry did. Gino, to his credit, really did understand that. It was important to him to help shepherd us through those challenging moments. And as we’ve come out on the other side and we and the broader industry are kind of turning the page on that chapter of real estate and we’re moving forward under the new rules and everything else that are now put into place, he felt this was the right time to do it.
I see. And even so, the industry is continuing to experience turmoil, particularly with the private listings conversation going on now and Zillow’s new listing standards. What do you make of all this?
It’s interesting because a lot of these discussions on how a listing was entered or what the status was — and this is probably one of the biggest changes that’s happened in real estate — you’d have these MLS committees that would come up with it. But these were really interesting local discussions. You had it locally with your MLS and what you did in Dallas might look a little different than Minneapolis or New York. And these conversations have really turned national in scale. So we’re having these broad conversations on what to do with the listing, how the listing has to be labeled across the entire country around these really disparate, sometimes very different markets.
For HomeServices, our view is that the vast, vast, vast majority of sellers and listings benefit from the widest exposure possible and in most of those markets, that means putting the property into the MLS. We also know that we have some markets and some consumers that we work with in various markets where an office exclusive makes sense for them. And in our view, when we do an office exclusive, it’s because we think it’s the right thing to do. The agent and the seller have determined that is the correct way to market the property at that local level. It’s not part of a broader national push that every property should be marketed under some type of certain system.
So we understand the need for office exclusives. We believe the vast majority of properties should have the widest exposure.
The one thing we want to make certain is that, sometimes saying the property is on-market gets conflated with being on the MLS. And the MLS is a really big, important part of the market and in some of our cities, it’s the biggest part of the market. But what we don’t want to have happen and what I think the DOJ is most interested in is, it’s not whether a property is listed exclusively or on the MLS, it’s do the rules create an artificial moat or barrier to competition?
What we want to make sure is that Clear Cooperation does not create a moat around the MLS that keeps them from innovating, keeps them from competition. We as brokerages have to compete every day with a new model that comes out and you either sharpen your tools or you fall by the wayside. MLSs are really, really good at what they do. They’re excellent data aggregators. They’re a great open marketplace. But there are other vendors out there who are trying to get in that space and might have some new way of doing something that would be really great for consumers and agents. We just want to make sure that these rules, Clear Cooperation or otherwise, don’t create these moats that prevent innovation and competition within different segments of our industry. I think that’s what the DOJ is most interested in and what they’re still looking at.
I wanted to ask too — there have been so many policy changes in the industry lately. Do you think NAR is handling all this in a helpful way?
I’ve had the opportunity to be in several meetings with Nykia Wright and her team. Three years ago, one of our agents was the president of NAR, Leslie Rouda Smith, and I was a liaison so I had a chance to be a little more intimately involved than I have typically been in the past. I do believe the association is always trying to do what’s in the best interest of its members, what’s in the best interest of consumers out there.
I know what Nykia walked into was a big task, right? I mean, there was obviously cultural reforms that had to happen while also trying to manage through litigation and then what were going to be the business changes out of that.
So having gone through that herself as a business, I admire anyone who comes out on the other side of that and she’s been very forthright and honest, I think she’s trying to do what’s best. I know she’s making changes within the association. So I think she deserves the leniency that I think we’ve given to her to get through these changes and best position NAR as a leaner association that is more focused on driving what is right for its members and for the consumer.
Any thoughts on the spring market?
We just got some data yesterday, at least within HomeServices, and we’ve noticed that our pending [sale]s are finally above what they were in 2024, so that’s an encouraging sign that we’re seeing for the first time — that kind of pending numbers eclipse.
We’re tracking closings to see if they follow that same trend line. So, the spring market certainly is in effect at this point, and it looks to be — again, it’s all relative to what we’re comparing it to — but it does seem to be, within our companies, to be a little bit stronger spring market than what we had last year.
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by Lillian Dickerson | Apr 23, 2025 | Industry, News Feed
The surge in sales was a welcome positive sign during a tenuous period for the U.S. economy. However, high prices and high mortgage rates continue to curb homebuyers, new HUD data shows.
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Sales of newly built single-family homes continued their upwards trajectory in March, as buyers got their first taste of the spring market, the U.S. Census Bureau and Department of Housing and Urban Development announced in a report released Wednesday.
The report findings were a welcome positive sign for the U.S. economy, which has been on shaky ground since the Trump administration unleashed a global trade war in recent weeks, but also a reminder that next month’s report may reflect less positively as the country continues to respond to new tariffs.
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New-home sales rose 6 percent on an annual basis in March 2025 for a seasonally adjusted annual rate of 724,000, well-exceeding analysts expectations of a rate of about 680,000. They were also up 7.4 percent month over month from the February 2025 rate of 674,000.
The median sales price of new homes sold during March 2025 was $403,600, down 7.5 percent year over year. The average sales price of new homes sold was $497,700, down 4.7 percent year over year.
By the end of March 2025, the seasonally adjusted estimate of new homes for sale was 503,000, up 0.6 percent from February 2025 and up 7.9 percent from March 2024. That figure represents 8.3 months supply at the current sales rate.
The South drove the growth of new-home sales between February 2025 and March 2025, increasing by 13.6 percent. Meanwhile, the Northeast took the greatest hit in sales of newly built homes, declining by 22.2 percent month over month.
Despite beating expectations, new-home sales are still being curbed by high home prices and mortgage rates, Robert Frick, corporate economist with Navy Federal Credit Union said in a statement sent to Inman.
“March sales were a nice recovery from the dip in January and February, probably due to the frigid weather across much of the country,” Frick said. “But sales remain stuck in a post-COVID range of about 630 to 730, a level that reflects high prices and high mortgage rates.”
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by Lillian Dickerson | Apr 22, 2025 | Industry, News Feed
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You know it’s a tough market when an agent thinks his next best option is trying to smuggle nearly 164 pounds of cocaine through Chicago’s Union Station.
That’s what LA-based agent Jerome Nalbandian resorted to this month, but authorities stopped him in his tracks once they saw him on April 13 toting four roller bags loaded up with 75.15 kilos of suspected cocaine through the station.
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“Wow. That’s a lot,” Cook County Circuit Court Judge Deidre Dyer said during Nalbandian’s first court appearance, CWB Chicago reported. “I mean, that’s a lot.”
“I’m totally shocked it’s not a federal case,” Judge Dyer continued, “but whatever. Nobody comes from another state with that many kilos. I don’t know. But I guess somebody in the drug unit was just itching to file something.”
According to California’s Department of Real Estate license records, Nalbandian is currently licensed with Dream Team Real Estate Consultants, Inc., based in Sherman Oaks, California. He also has a profile on Equity Union Real Estate’s website, a company that Dream Team Real Estate Consultants, Inc. also does business as, which says he specializes in residential sales across Southern California, including single-family properties, condos and investment properties, as well as some commercial and land sales. His bio on that website states he “brings an uncompromising level of responsive, attentive service — while adhering to the highest level of ethical standards.”
Nalbandian could not be reached for comment.
The state of the market has taken a toll on some agents in the last few years, which may be prompting some — like Nalbandian — to pursue other side hustles.
Cocaine and other illegal substances are often traded by what’s known as an 8-ball, or one-eighth of an ounce, according to the Carolina Center for Recovery. An 8-ball can be sold for anywhere between $120 to $300. Nalbandian had enough cocaine for about 21,208 8-balls, which could net him up to $6.36 million.
With the median home sales price at $419,200 as of the end of 2024, according to the Federal Reserve Bank of St. Louis, if an agent is earning a 2.5 percent commission on a typical sale, they’re earning about $10,480 per transaction. In order to earn the same amount as selling 21,208 8-balls of cocaine, Nalbandian would have to sell a little over 606 homes.
In this market, it appears that Nalbandian thought the cocaine was a surer bet — albeit a more risky one.
Judge Dyer confirmed in court with prosecutors, a public defender and court officers that Nalbandian had never been arrested before and that the state was not attempting to detain him. She released him to await trial on charges of trafficking a controlled substance.
But before she let Nalbandian go, Judge Dyer gave him a stern warning.
“So I’m just telling you, you can mess around and go back to California and think it’s not just going to away,” the judge said. “So it would behoove you to get to all of your court dates. For this class of offense, if you fail to come to court, I’m certain we would come and get you and assist you back here. Just so you know.”
Correction: The number of homes someone would need to sell at a roughly 2.5 percent commission on a $419,200 home to meet a profit of $6.36 million would be over 606 homes. A math error in a previous version of this story stated that only 21 homes would need to be sold to meet the same profit as selling the amount of cocaine Nalbandian had in his possession.
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by Lillian Dickerson | Apr 22, 2025 | Industry, News Feed
Blaylock’s move to Sotheby’s International Realty comes about one week after Gino Blefari retired as CEO at HomeServices, and Chris Kelly stepped into the role. Blaylock will lead company-owned brokerage operations at the luxury brand.
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Another leadership shakeup at HomeServices of America, Inc. has a new executive in at Sotheby’s International Realty.
Mary Lee Baylock, previous senior vice president at Berkshire Hathaway affiliate HomeServices of America, has been named president of brokerage at Sotheby’s International Realty, the firm announced on Monday.
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Blaylock will lead the luxury brand’s company-owned brokerage operations, which include overseeing 48 U.S. offices that encompass more than 2,300 affiliated agents who represented $20 billion in annual sales volume in 2024. At Sotheby’s Realty, she will work to enhance local market positioning and drive long-term growth.
“At every step in my career, I have admired Sotheby’s International Realty,” Blaylock said in a statement. “The brand has set the standard for client representation and marketing luxury homes worldwide. The reputation of the advisors affiliated with Sotheby’s International Realty is peerless, and I look forward to leveraging my expertise and passion to serve them.”
Sotheby’s International Realty President and CEO Philip White added that Blaylock’s track record would help propel the firm forward.
“Mary Lee’s extensive industry knowledge, proven leadership track record … and genuine ability to build strong relationships will undoubtedly drive our company-owned brokerage operations to new heights,” White said. “Our agents will benefit from her strategic vision, hands-on approach, and commitment to our extraordinarily high standards that will further equip our advisors to deliver unparalleled service and transact for their clients.”
HomeServices of America did not immediately respond to a request for comment on Blaylock’s move.
Blaylock has more than 30 years of residential real estate experience. Before serving as HomeServices of America’s senior vice president, she was president and CEO of Berkshire Hathaway HomeServices California Properties. While there, she helped spearhead the launch of the brand’s National Luxury Division and was in charge of 56 offices, 350 employees and 3,000 agents.
About a week ago, Gino Blefari, HomeServices’ previous president and CEO, announced his retirement into an advisory role at the company. Chris Kelly, who had been serving as executive vice president, has now stepped into the CEO role. The move occurred about a month after rumors swirled that Compass was potentially in talks to buy Berkshire Hathaway HomeServices. HomeServices of America denied the claims.
Blaylock has been named one of the 100 most powerful leaders in residential real estate by the Swanepoel Power 200 and was inducted into the RISMedia Hall of Fame in 2023.
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by Lillian Dickerson | Apr 18, 2025 | Industry, News Feed
The embattled brothers can now say they have one legal action behind them. Terms of the settlement were not immediately disclosed.
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Tal and Oren Alexander have eliminated one of many lawsuits against them in a settlement reached between the brothers and their former white label firm, Side, this week, according to legal filings. Terms of the settlement had not been disclosed as of Friday.
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Side launched the lawsuit back in October, alleging that the brothers and their brokerage, Official Partners, had defaulted on a $4.2 million loan that had been extended to them when they first launched their firm at Side. The lawsuit came after the Alexanders had been sued by multiple women over allegations of sexual assault.
“Side and Official have settled their legal dispute,” a representative from Side told Inman in an email. “While the specific terms of the settlement are confidential, we are pleased to put this behind us and move forward.”
An attorney for Side declined to comment to Inman or share details of the settlement. An attorney for Official and the Alexanders did not immediately respond to a request for comment.
The brothers allegedly failed to make a $1.6 million payment on a promissory note and did not maintain loan collateral, including bank accounts, cash and real estate, according to Side’s legal filings. In November, Side also filed a restraining order against the Alexanders in an attempt to prevent them from selling or moving their loan collateral.
The legal filing on Wednesday also stated that the Side and Official would seek to dismiss with prejudice their pending litigation against each other in Florida, in which Side sought to freeze their assets in that state.
The Alexanders maintain that they had never moved the loan collateral. One of their attorneys, James Cinque, asserted in October that they had “never missed a payment” and that the suit was a “greedy attempt by Side to take over the business of Official Partners.”
Side told Inman at that time that it was “simply seeking repayment for money owed.”
Tal and Oren were top earners at Douglas Elliman before leaving in 2022 to launch Official Partners, backed by Side, along with partners Nicole Oge, Andrew Wachtfogel and Richard Jordan. Once the lawsuits and allegations of sexual assault came to light against the brothers, their cofounders attempted to distance themselves from the Alexanders. At that time, Oren and Tal stepped away from their roles at the firm, and their licenses were no longer active with Side.
After negotiations with the brothers fell through, Oge, Wachtfogel and Jordan decided to forfeit their ownership in the company and officially left the firm on Aug. 15.
Tal, Oren and their brother, Alon, were arrested in December on federal charges of sex trafficking. They are now being held in the Metropolitan Detention Center in Brooklyn, where Sean “Diddy” Combs and United Healthcare CEO accused murderer Luigi Mangione are also being held. The Alexanders’ federal trial is currently scheduled for January 2026.
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