Company: HOUS
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001398987-25-000020
Chunk: 36

Company: Anywhere Real Estate Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1A
Chunk 36
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 companies typically realize revenues in the form of a commission that is based on a percentage of the price of each home sold. As a result, the real estate industry generally benefits from rising home prices and increasing homesale transactions (and conversely is adversely impacted by falling prices and lower homesale transactions). We believe that existing homesale transactions and the services associated with these transactions, such as mortgage origination, title services and relocation services, represent one of the most attractive segments of the residential real estate industry for the following reasons:

•the existing homesales segment represents a significantly larger addressable market than new homesales. Of the approximately 4.7 million homesales in the U.S. in 2024, NAR estimates that approximately 4.1 million were existing homesales, representing approximately 86% of the overall sales as measured in units;

•existing homesales afford us the opportunity to represent either the buyer or the seller and in some cases both the buyer and the seller; and

•we are able to generate revenues from other Company services provided to our customers.

Our business model relies heavily on affiliated independent sales agents, who play a critical consumer-facing role in the home buying and selling experience for both our company owned and franchise brokerages. While substantially all homebuyers start their search for a home using the Internet, according to NAR, approximately 88% of home buyers and 90% of home sellers used an agent or broker in 2024. We believe that agents or brokers will continue to be directly involved 

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in most home purchases and sales, primarily because real estate transactions have certain characteristics that benefit from the service and value offered by an agent or broker, including the following:

•the average homesale transaction value is very high and generally is the largest transaction one does in a lifetime;

•homesale transactions occur infrequently;

•there is a compelling need for personal service as home preferences are unique to each buyer;

•a high level of support is required given the complexity associated with the process, including specific marketing and technology services as well as assistance with the inspection process and other aspects of the transaction; 

•the consumer preference to visit properties for sale in person, notwithstanding the availability of online images and property tours; and

•there is a high variance in price, depending on neighborhood, floor plan, architecture, fixtures, and outdoor space. 

Cyclical nature of industry, long-term demographics and seasonality. The U.S. residential real estate industry exhibits a cyclical nature, characterized by periods of