More Details on the Sale of Allie Beth Allman & Associates to Home Services of America: Nothing, Not Even Signs, Changing

I got a chance to talk with Allie Beth and Pierce Allman and also Ron Peltier, chairman and CEO of HomeServices of America, Inc., briefly yesterday afternoon. Had so many questions about this game-changer in the Dallas luxury real estate market, which is one of the hottest in the country.

(Don’t be surprised if other folks come shopping here for real estate brokerages.)

First of all, know that HomeServices, an affiliate of Warren Buffett-backed Berkshire Hathaway, has been shopping in Dallas since the first of the year, I mean really shopping. Ron Peltier, who I loved immediately because he told me his name is pronounced to rhyme with “Cartier”, would not comment on that. Last week I got word that Allie Beth Allman’s affiliation with Christie’s Great Estates had ended. Many agents told me the broker didn’t feel they were getting enough out of the relationship, which would mean business. Like referrals. But that wasn’t the reason the affiliation ended.

This is what was cooking,

and had been cooking for about a month. HomeServices contacted the luxury boutique firm and Allie Beth says the offer was too tempting to say no to. The reason was more than just money, though sources speculate that Allman netted anywhere from $7.8 to $10 million, based on the company’s superlative last year in selling $1.5 billion of luxury real estate. The announcement was made at the agents’ November agent appreciation lunch at the Dallas Country Club.

Then too, Allie Beth is the agent to the stars of Dallas: former president George W. and Laura Bush, Tom Hicks (who moved his $100 million Crespi estate to her and David Nichols this March), Troy Aikman, the estate of Trammell Crow, John Amend and his $20 million Mt. Vernon. She is even marketing the Greenbrier’s Oakhurst vacation home residences for West Virginia’s Jim Justice, owner of The Greenbrier. Not bad for a gal from Graham, Texas near Possum Kingdom Lake (where Pierce and Allie Beth are selling an amazing lake home at Hell’s Gate) who managed some apartments as a new young bride for “something to do”. We did a profile on Allie Beth Allman in 2013: 

CD: How did you get into real estate?

Allie Beth: I came to Dallas originally for college. I went to TCU. Upon graduation I had a job offer in radio and TV with WFAA. I met my husband Pierce Allman there. He was the Program Director.

CD: The same one who witnessed the Kennedy Assassination?

Allie Beth:  Yes. After we got married, I quit working at WFAA and managed some apartments for something to do. In the 1970’s I sold my own home “by owner,” and then a friend asked me to sell hers. And then another friend asked for help and suddenly I was in real estate. I got my license and never looked back. I worked for a while with Hank Dickerson & Company until I had more business than I could handle and I went out on my own in 1985.

Working in the luxury marketplace just happened. I sold Jerry Jones his house on Preston Road when he first moved down here which led to more and more listings in the area. The company grew and I sold it in 1995 to Henry S. Miller so I could retire.

I missed it terribly. Luckily, I have loyal customers who wouldn’t let me retire. Sammons Enterprises, Inc. called me with a project – 130 unit high rise luxury condominium at Crestpark in Highland Park. It was a fun project. I also had many of my previous agents asking if I was going to come out of retirement because they wanted to work with me again. In 2004, I went to Henry Miller and asked him if he would support me in re-opening Allie Beth Allman.  He not only agreed; he gave me his home to list – the Park Plaza condos across the street from the Crestpark.

So this is not her first rodeo selling a company. As for retiring, her agents say that is not a word in Allie Beth Allman’s vocabulary. She loves the game, might even be addicted to it. That’s what happens when the love of dirt (or even reporting on it!) gets in your blood. As she told Steve Brown, “What would I do if I didn’t come up here every day? This is my life!”

And she says she no longer has to worry about paying the bills!

When asked why there would be no more affiliation with Christies, Allie Beth told me, “we won’t need it.”

“We will have the amazing network with HomeServices, and we are going to be getting so many referrals we won’t know what to do with them,” she said.

It’s not only relocation business, but the vast number of companies Berkshire Hathaway owns that are relocating to Dallas — like the huge Nebraska Furniture Mart. Those referrals will all be sent to Allie Beth Allman agents, she said.

“Yes, a lot of people have contacted us over the last year or so interested in buying, but I do not think we could do any better than this company. I am thrilled! How can you do better than being associated with Warren Buffett?”

She and Pierce have not personally met him yet, but they will, soon.

Ron Peltier told me that many Berkshire Hathaway affiliated services would now be available to Allie Beth Allman agents, from mortgage company and title insurance to property and casualty insurance. Berkshire Hathaway, of course, owns GEICO.

“We chose Allie Beth Allman as our first acquisition foray into Texas, a very strong growth market” says Ron. “Our primary goal is to find great companies, which we certainly did right here. And it won’t be the last.”

On November 10, at 3:00 p.m., Allie Beth Allman signed the documents selling the company she founded 12 years ago. She told me that she will still be involved in the day-to-day management of the firm just as she has been, and the signs will not change with one exception: a magnetic strip that says “a Berkshire Hathaway Affiliate” will go on current signs, below Allie Beth Allman’s name. New signs will be printed with both names.

“We have 500 offices across the U.S. all operating as different brands,”  said Ron. “The Allie Beth Allman name will continue on.”

And could actually grow if the company expands as they have in other markets.

Now three years ago Berkshire Hathaway’s HomeServices bought up a slew of North Texas Prudential affiliates, looking for an internet presence with a common name, as HomeServices rolled out its flagship brand, Berkshire Hathaway HomeServices. But that was through a franchise program. We ran the story, of course. There could be as many as 21 franchise offices in North Texas now. The network has grown to more than 35,000 agents in just two years. It’s preparing for an overseas launch in 2016. Any Prudential store had the right to convert to the Berkshire Hathaway name.

Prudential Texas Properties has joined their network, operating as Berkshire Hathaway HomeServices PenFed Realty Texas.

PenFed Realty Texas Broker Rick Wylie said the transition ushers in a new era of growth at the brokerage, which has served the DFW area since 1989 and was a perennial top 50 company with Prudential Real Estate.

“We are so proud of our new name and what it stands for,” Wylie said. “Berkshire Hathaway HomeServices’ namesake is Warren Buffett’s Berkshire Hathaway Inc., a corporation respected around the world. PenFed is one of America’s strongest and safest credit unions serving millions of Americans. Factor in our skilled and passionate agents, and you’ve got world-class real estate representation.”

There’s so much power in that Omaha, Nebraska, guy’s name. Buffett’s brand-new real estate franchise brand also has the strongest brand equity of all real estate brands, at least according to a consumer survey by Harris Poll.

Harris poll? Yes, the Berkshire Hathaway brand was named “Real Estate Agency Brand of the Year” in the 26th annual Harris Poll EquiTrend study. It received the highest ranking in the Real Estate Agency category based on consumers’ perception of its brand familiarity, quality and purchasing consideration, among other qualifying elements.

I mean, if Warren Buffett decided to run for President, even Hillary might drop out. Look at the price of the company’s stock.

Peltier invoked Edina Realty in Minneapolis  (“Our founder, Emma Rovick, said she never wanted to cross the street to avoid a past client. This is how we do business today and how we’ve done business for the past 60 years”), one of the country’s largest independent brokerages, as an example of how his company will be working with Allie Beth Allman. Last December, in an interview with Inman on Warren Buffett’s aggressive real estate expansion, Peltier explained how HomeServices buys the brands and then basically tells them to carry on, while beefing up operations:

Inman: What happens to those local brands?

Peltier: They continue to be local brands. There is a connection to Berkshire Hathaway. The local brands are identifying themselves as the local brand, and underneath that, they are a Berkshire Hathaway affiliate. Our companies will continue to have a platform under a single brand. Under SEO optimization, if you are searching under the Berkshire Hathaway brand, even the local brand that carries “a Berkshire Hathaway affiliate” identity would show up.

Observers I have spoken with think this is a very smart move for Allie Beth Allman. The company is now married to one of the nation’s most trusted brands, with very deep pockets. The relocation aspect is huge, in a region where everyone is relocating. And some very fancy tools will soon be available for Allie Beth Allman operations — web sites, SEO, video, marketing, all the outside-the-box tools you need to market a luxury home in 2015. Here is the press release that was released Wednesday after the Dallas Country Club lunch meeting.

“We thought we were going to have a lunch meeting,” says Kyle Crews, ” and we were the first to hear about this wonderful new affiliation with a little company in Omaha, Nebraska.”

“It’s all about the agents,” says Allie Beth, ” this is the number one Real Estate company in the US, and this is going to be unbelievable for them. Our company is the agents.”

HomeServices of America, Inc. Announces Acquisition of

Allie Beth Allman & Associates

Acquisition expands HomeServices’ footprint to Dallas–Ft. Worth market

Minneapolis, Minn. (November 11, 2015) – HomeServices of America, Inc., a Berkshire Hathaway affiliate, today announced the acquisition of Allie Beth Allman & Associates, a recognized leader within the Dallas luxury real estate market. Terms were not disclosed.

Headquartered in Dallas, Allie Beth Allman & Associates serves the Dallas–Ft. Worth metropolitan area and surrounding communities with 335 sales associates. Since 2007, Allie Beth Allman & Associates has consistently ranked in the top-five market share in Dallas County by sales volume and in 2014 closed nearly 2,100 units and $1.5 billion of volume.

Founded in 2003, Allie Beth Allman & Associates is recognized as the highest-grossing, single office residential real estate firm in Dallas, and the name is synonymous with exclusive estates, high-profile clientele, and superior customer service. Allie Beth Allman, founder and chief executive officer, is among the most influential leaders in North Dallas and is known for her industry expertise and leadership, as well as her extensive civic and philanthropic contributions. Allman, together with her executive and sales management team, will continue to lead the firm’s growth initiatives and manage day-to-day operations.

The acquisition represents HomeServices’ entry into Texas and the Dallas–Ft. Worth region. With this transaction, HomeServices has nearly 26,500 real estate professionals operating in 480 offices across 27 states. In 2015, the company’s associates will facilitate over $77 billion in residential real estate sales and more than 220,000 transactions.

“Allie Beth Allman & Associates is a strong company with an exceptional reputation in a growth market,” said Ron Peltier, HomeServices’ chairman and CEO. “This transaction aligns with our vision of acquiring distinguished companies in leading markets that share our core values.”

“We are proud to be part of HomeServices of America,” said Allman. “We are joining an organization known for its strength and stability; one that is consistent with our high standards of service, integrity and community involvement, making this a win/win for our clients and our agents.”

“We are excited to be in Dallas and are looking forward to having Allie Beth and her team join the HomeServices family,” Peltier said.

About HomeServices of America

HomeServices of America, Inc. is the nation’s second-largest residential real estate brokerage company and, through its operating companies, is one of the largest providers of integrated real estate services. HomeServices of America is the majority owner of the Berkshire Hathaway HomeServices, Prudential Real Estate, and Real Living Real Estate franchise networks. HomeServices is owned by Berkshire Hathaway Energy, a consolidated subsidiary 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 under the following residential real estate brands: Allie Beth Allman & Associates; Berkshire Hathaway HomeServices California Properties; Berkshire Hathaway HomeServices Carolinas Realty; Berkshire Hathaway HomeServices First Realty; Berkshire Hathaway HomeServices Fox & Roach, Realtors®; Berkshire Hathaway HomeServices Georgia Properties; Berkshire Hathaway HomeServices Kansas City Realty; Berkshire Hathaway HomeServices New England Properties; Berkshire Hathaway HomeServices Northwest Real Estate (Portland); Berkshire Hathaway HomeServices Northwest Real Estate (Seattle); Berkshire Hathaway HomeServices KoenigRubloff Realty Group; Berkshire Hathaway HomeServices York Simpson Underwood Realty; Berkshire Hathaway HomeServices Yost & Little; Carol Jones Realtors®; CBSHOME Real Estate; Champion Realty Inc.; Edina Realty; EWM Realtors®; First Weber Realtors®, Guarantee Real Estate; Harry Norman, Realtors®; HOME Real Estate; Huff Realty; Intero Real Estate Services; Iowa Realty; Long Companies; RealtySouth; Rector-Hayden Realtors®; ReeceNichols; Roberts Brothers Inc.; Semonin Realtors®; and Woods Bros. Realty.

Information about HomeServices is available at www.homeservices.com.

About Allie Beth Allman & Associates

Allie Beth Allman & Associates was founded in 2003. The company has one office and over 300 agents that serve the Dallas metropolitan area. The majority of exclusive listings are in the established, higher-end neighborhoods of Dallas – Highland Park, University Park, Preston Hollow, Bluffview, Turtle Creek, Uptown and Lakewood – but the firm’s activity covers the entire Dallas-Fort Worth Metroplex and major luxury markets around the world. (www.alliebeth.com/)

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