United Real Estate announces Virginia merger

The newly formed Virginia team will operate as RVA Blue Realty. Terms of the cash deal were not disclosed, although John Finn said it was backed by third-party acquisition financing.

Finn and River City Blues founder Smitty Smith had reportedly been in talks about combining forces as Smith looked to return his firm to a physical office space after years of virtual operations.

“Before Covid came around, we had a very strong office presence,” Smith told Richmond BizSense. “We wanted to get back to an in-person workshop. We reached out to John to see what some of the large, successful firms were doing, and we walked in and I was like, ‘Wow, this is what I want right here.’”

Smith, who has assumed a leadership role as a United broker, said the merger not only provides access to United’s offices but allows agents to benefit from expanded training and administrative support.

“He has the infrastructure and the experience that helps me and the agents already associated with River City Blues Realty, so it’s a win-win situation for my agents especially,” Smith said. “Why go out and recreate the wheel when the wheel already exists and it’s turning in the direction that you want to turn?”

United Real Estate Richmond was founded in 2015 by the Finn brothers. It has grown from six agents to its current position as the largest African American-owned brokerage in the Mid-Atlantic, according to Finn.

It is now the third-largest brokerage in central Virginia by agent count, Richmond BizSense added.

The company uses a flat-fee brokerage model that charges agents about $700 per transaction while allowing them to keep 100% of their commissions, a structure Smith found particularly appealing.

“That is the direction of real estate today if you’re a brokerage,” Finn said. “The fees that you charge generally are contracting.”

Finn said the company is in talks with three more firms about potential acquisitions. Last year, United Richmond agents closed more than 1,000 home sales.