J.P. Shamshoian is CEO and sole owner of Realty Concepts, which has announced an acquisition deal with Guarantee Real Estate. Photo contributed by Realty Concepts

The Central Valley’s largest residential real estate brokerage has been forged with the acquisition of Guarantee Real Estate by Realty Concepts.

J.P. Shamshoian, CEO and owner of Realty Concepts, said growth will give brokerages more market and inventory insight as seismic changes take hold in how real estate agents are paid.

Guarantee’s team of 370 agents will join Realty Concept’s 315 agents to form the largest real estate brokerage in the Central San Joaquin Valley, according to a news release, creating “a network of people and data that will soon serve as a major advantage for home buyers and sellers.”

“We are honored to continue the great legacy of Guarantee Real Estate at Realty Concepts,” Shamshoian said in a statement. “This is a coming together of firms with common ethics, common friends, and a common commitment to serving the best interest of the public. By joining forces, we ensure that the values upon which both brokerages were built will be sustained for generations to come.”

It will be an ownership homecoming for Guarantee Real Estate, which has been owned by HomeServices of America, Inc. — a Berkshire Hathaway affiliate — since 2013. The Guarantee name dates back to the early 1900s, according to the news release. The Guarantee brokerage was founded in 1984 with the acquisition of an existing firm with 30 associates, according to the Guarantee website.

Scott Leonard began as president of Guarantee Real Estate in 1985, later purchasing the firm with Joan Eaton and Paul Gibson in 1991, according to the website.

The idea of acquisition started from a friendship between Shamshoian and the descendants of the original founder of the Guarantee name, according to the news release.

Shamshoian said he began a conversation with HomeServices of America that developed into the acquisition deal.

“HomeServices extends its gratitude to the leaders and team members of Guarantee Real Estate for their contributions and we are confident their integration into the Realty Concepts family will provide expanded opportunities and continued success in the industry,” said Gino Blefari, CEO of HomeServices of America.

A few weeks ago, the National Association of Realtors (NAR) announced an agreement that would end litigation regarding home sellers’ claims on broker commissions. Under the terms of the agreement, NAR would pay $418 million over approximately four years to resolve the claims against the group.

The biggest shift is how buyers and sellers perform transactions via the Multiple Listing Service (MLS) — a market’s database of available properties. In a change anticipated to take place in June, sellers will no longer be obligated via the MLS system to make an offer for buyer’s brokerage fees. Homebuyers could potentially negotiate for lower-priced representation — but they could also be on the hook for those costs.

Many see the changes as detrimental to the viability of the MLS system. In the future, larger brokerages will have better insight on available inventory, according to the Realty Concepts news release:

“Due to upcoming changes in the way that homes can be marketed, agents at larger brokerages will have more insight into the available inventory and data than their competitors, which will better help buyers find their homes. The merging of Guarantee into Realty Concepts gives the nearly 685 agents the largest network in the area.”

Realty Concepts was founded in 1991 by Shamshoian’s father, John Shamshoian, and has grown to a brokerage that represents buyers and sellers from Merced and Mariposa counties to Porterville.

As part of the transition, Guarantee’s staff, agents and operations in three of its Fresno-area locations will consolidate into Realty Concepts’ Fresno and Clovis offices, “where there is enough room to accommodate and take advantage of the collective synergy of energy and togetherness that will take Realty Concepts to the next level,” according to the release.

The rest of Guarantee’s offices will remain open and transition to Realty Concepts.