Company: HOUS
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001398987-25-000020
Chunk: 9

Company: Anywhere Real Estate Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 9
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 homesale sides249,421 258,643 (4)%258,643 317,600 (19)%Average homesale price$748,596 $696,992 7 %$696,992 $699,016 — %Average homesale broker commission rate2.37 %2.42 %(5) bps2.42 %2.40 %2  bpsGross commission income per side$18,557 $17,668 5 %$17,668 $17,435 1 %Anywhere Integrated Services - Title GroupPurchase title and closing units103,612 102,967 1 %102,967 133,055 (23)%Refinance title and closing units10,225 8,850 16 %8,850 18,470 (52)%Average fee per closing unit$3,341 $3,185 5 %$3,185 $3,146 1 %_______________

(a)Includes all franchisees except for Owned Brokerage Group.

54

Declines in the number of closed homesale sides and/or declines in average homesale price adversely affect our results of operations by: (i) reducing the royalties we receive from our franchisees, (ii) reducing the commissions our company owned brokerage operations earn, and (iii) reducing the demand for services offered through Title Group, including title, escrow and settlement services or the services of our mortgage origination, title underwriter insurance, or other joint ventures. Additionally, declining closed homesale sides and/or declines in average homesale price increase the risk of franchisee default due to lower homesale volume. Further, our results have been and may continue to be negatively affected by a decline in commission rates charged by brokers, greater commission payments to independent sales agents, lower royalty rates from franchisees or an increase in other incentives paid to franchisees, among other factors.

Royalty fees are charged to all franchisees pursuant to the terms of the relevant franchise agreements and franchisees may receive volume incentives described in each of the real estate brands' franchise disclosure documents. Other incentives may also be used as consideration to attract new franchisees, grow franchisees (including through independent sales agent recruitment) or extend existing franchise agreements, although in contrast to volume incentives, the majority of other incentives are not homesale transaction based. See Part I., "Item 1.—Business—Anywhere Brands—Franchise Group—Operations—