After headlines swirled with rumors of a brewing brokerage sale to Compass, HomeServices of America CEO Chris Kelly hopes his new role shows the company’s commitment to the future of its brokerage franchise and clients.
Kelly, who brings 25 years of real estate experience, initially as an attorney, took the company's CEO role Tuesday. The Minnesota-based company owns the national brokerage Berkshire Hathaway HomeServices, the fourth largest in the country, according to real estate-ranking platform RealTrends.
“Hopefully, the management change that we’ve just recently announced will help solidify the support that we have from our parent companies and obviously the support we want to give all of our companies, agents and their clients moving forward,” Kelly said in an interview.
Kelly added that the promotion from executive vice president came down to timing for former CEO and now Chairman Emeritus Gino Blefari.
“Gino’s decision is something he has been considering for a period of time. And certainly, to his credit, he understood that in his position it was important for him to lead us through what those last few years looked like,” he said.
Those last few years were challenged with commission policy changes, resulting in litigation and settlements. Most of those headaches are settled, said Kelly, allowing Blefari to shift into an adviser role in which he will expand the executive team with previously cut titles and new ones. New positions include a “forward-facing brand president” and roles on sales and event teams.
Kelly entered the real estate world in 2007 as general counsel at HomeServices subsidiary ReeceNichols in Kansas City, where he grew up (yes, he’s a big Chiefs and Royals fan and admittedly has “sports mania”). He eventually served as chief administrative and legal officer before leading another subsidiary, Ebby Halliday Cos., where he most recently served as CEO and president.
'We are moving in the right direction'
Entering the leadership role comes amid a fast-changing real estate industry, one that’s thrust HomeServices into recent headlines.
Berkshire Hathaway HomeServices was caught up in rumored merger and acquisition news last month, tying it to the country’s largest brokerage, Compass, which acquired Christie’s International Realty and @properties in its latest move.
Mortgage lender Rocket Cos. also announced the $1.75 billion acquisition of online brokerage Redfin, the eighth largest, and weeks later, major mortgage servicer Mr. Cooper for $9.4 billion.
To Kelly, this movement affirms that HomeServices — which comprises 49 companies offering mortgage, franchising, title, escrow, insurance and relocation services — is doing things correctly.
“We see other operations trying to duplicate what we have, and it's not always from the brokerage side: There's other brokerages trying to add these other services, but we've seen mortgage companies trying to come from the other side of the funnel, reverse their way into real estate brokerage as well, too,” said Kelly. “We look at what we're doing, and it reaffirms for us that we are moving in the right direction.”
Now it's time for HomeServices to focus on digitizing these services, continued Kelly. His vision includes a more seamless backend for agents by utilizing technology and simplifying the process for them and their clients. Rather than an abundance of tools, the company hopes to streamline the process for buyers.
Controversy brews on off-market listings
The industry is hotly debating policies on off-market listings.
Some brokerages, namely Compass, have pushed for more private, off-market listings that don’t reach the public market, specifically the Multiple Listing Service, where most for-sale homes are listed. Others have commented that it’s an unfair way to market homes. Kelly notes that for Berkshire Hathaway HomeServices, there’s room for both.
“Historically, for our companies, we do have certain markets that are more prone to market exclusives, at a lower percentage, because there is a unique circumstance for the seller or the property to have an office exclusive,” he explained. “The position of HomeServices and our leaders is that the vast majority of the time, properties and sellers benefit from the widest exposure possible.”
Ironman competitions redefine accountability
Kelly found a new definition of discipline when training for multiple Ironmans.
The race, recognized as one of the most challenging, consists of a 2.4-mile swim, a 112-mile bike race and a full marathon —another 26.2 miles. He’s also completed five half-Ironmans and a few marathons in between. It wasn’t something he was drawn to organically, rather, he has NBC’s inspirational coverage to thank for that.
“The first time I signed up, I was painting a room at our house, and the Hawaii Ironman was on television,” Kelly recalled. “It’s all montages and music, and it just makes it seem so inspirational and fun. And so I signed up for a small triathlon and worked my way up until I signed up for a full.”
Finding the time to train while raising three children and juggling a career redefined accountability and discipline for Kelly. Ultimately, the race becomes more of a victory lap, one he likes to share by convincing others to sign up with him.
“You get out there, and it is an amazing day,” he said. “But, yes, no one's playing music behind you.”