Ryan Schneider, CEO, Anywhere Real Estate.
Illustration by Lanette Behiry/Real Estate News

Anywhere could be ‘biggest beneficiary’ if Clear Cooperation is repealed 

During a Q3 earnings call, CEO Ryan Schneider reiterated his support of the CCP but said large firms would be the winners if it goes away. Revenue, income fell.

November 8, 2024
4 minutes

From a financial perspective, brokerage giant Anywhere had a lackluster quarter — revenue dipped and profits were way down, and transaction growth was flat — but leaders remained focused on cost-cutting efforts and signaled optimism for the housing market and brokerage industry as a whole. 

CEO Ryan Schneider told listeners on the earnings call that they were catching him "during a big moment of excitement" for his outlook on Q4.

"Our close volume in October was up 9% year-over-year, and our open volume is up 16% — that's better than what people are forecasting today for the quarter," he explained. "So we're really excited about that."

In addition to covering the company's financials, Schneider touched on several hot topics including Clear Cooperation, AI and buyer agreements. 

What Anywhere had to say

On the uncertain future of the CCP: Schneider commented on the widely debated Clear Cooperation Policy and told investors that Anywhere was solidly in the camp of industry stakeholders who want to see it remain — though the company has suggested changes

"The real debate about Clear Cooperation is, who's going to be advantaged and who's going to be disadvantaged in business? I think if we repeal this thing, it's a disadvantage for both sellers and buyers. Buyers get the lack of transparency of their current listing inventory, and over the long run, sellers will have less info of what's happening in their market."

Schneider also commented on the pivot Anywhere could make if the CCP were to go away, however, saying that "we're sure not going to stand idly by and let our folks be at a disadvantage" if competitors start leaning heavily into pocket or private listings.

"Repealing [CCP] is going to advantage the large brokers, including some who are advocating for repeal as people could create walled gardens around their listings" he explained. "The reality is, we have more listings than anybody does, and so if this thing gets repealed, we could be the biggest beneficiary, even if we don't think that's the right answer."

On AI's role in real estate: Schneider said that Anywhere will continue to integrate AI "across everything we do" and that it will lead to a "substantial amount of operational efficiency" which will give agents more time to "generate business and execute transactions." 

The continued adoption of AI in the brokerage world could lead to an uptick in agent attrition, he acknowledged, but Schneider believes that "there's a lot of good in that."

On buyer agreements: Schneider noted that Anywhere has rolled out five different buyer agreements and they have been received well. He has previously encouraged the company's agents — and the rest of the industry — to use Anywhere's forms, telling Real Estate News in August, "I am not wasting my energy on the forms that state associations are doing because I don't think they're meeting my simplicity and flexibility requirements." 

During the earnings call, he said the company's six-month agreement has been "by far the biggest one being used" so far.

Key numbers

Revenue: $1.5 billion in Q3, a 3% drop from the same period a year ago and down from $1.67 billion in the previous quarter

Cash and cash equivalents: $102 million, up from $63 million the previous quarter. Anywhere also noted that it had achieved $99 million in free cash flow during the quarter.

Net income/loss: $7 million for the quarter, which was lower than the $30 million net income from the previous quarter and down significantly from $129 million a year ago. Anywhere attributed the year-over-year decline to "lapping gains on the early extinguishment of debt."

Operating EBITDA (earnings before interest, taxes, depreciation and amortization): $94 million, which is down from $139 million last quarter and down from $107 million from the Q3 2023.

Transactions: 189,833 closed transactions for Anywhere Brands and franchise groups (Corcoran, Century 21, Sotheby's International Realty, Coldwell Banker, ERA and Better Homes and Gardens), and 67,625 closed transactions for Anywhere Advisors, its owned brokerage group. Combined closed transaction volume was flat year-over-year with units down about 5% and prices up 6%.

Agent count: Approximately 182,100 independent sales agents in the U.S. and 131,600 in 118 other countries and territories, according to the earnings report. Totals in both regions are down from the previous quarter.

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