HousingWireHousingWire
Fathom Realty rolled out two new agent commission plans in 2024, and the brokerage isn’t done yet.
On Fathom Holdings‘ fourth-quarter 2024 earnings call on Wednesday, CEO Marco Fregenal mentioned a new revenue-sharing model that will launch “soon.” The plan is designed to help agents close more business.
To back the new plan, Fregenal cited a survey showing that almost 90% of agents want more from their parent brokerages, but he offered no details on what’s to come.
The forthcoming offering comes on the heels of two plans that Fathom implemented for agents in August 2024.
Fathom Share offers what the company calls is an industry-low 12% commission split with a $12,000 annual cap. Fathom Max provides a reduced transaction fee of $465 with a $9,000 annual cap.
The two new plans allowed the brokerage to phase out its Fathom One plan to new agents. Fregenal said that 5% of its new agents have joined Fathom Share.
Fathom is looking for ways to recruit and retain agents in a stagnant housing market where quality agents are in high demand. The company is already tallying its fair share of wins on that front.
At the end of 2024, the brokerage’s agent count had increased by 21% compared to one year earlier, landing at about 14,300. The growth is representative of a trend since Fathom has gone public, as the current agent count is also up by 38% compared to 2022.
Financially, the company is trending in the right direction. Total revenue in the fourth quarter grew by 24% year over year to $91.7 million, with revenue from brokerage services (+26.3%), mortgage (+11.1%), title (+92%) and technology (+38%) all increasing by double-digit percentages.
Its mortgage and title businesses are still in their infancy, however, with revenue growth hitting $2 million and $1.3 million, respectively.
Despite the growth in revenue and a number of cost-cutting measures, the company still posted a net loss of $6.2 million in the fourth quarter of 2024, although that’s down from an $8.4 million loss in Q4 2023.
