Cloud-based real estate brokerage Fathom Realty is growing by 435 agents with the acquisition of Utah-based iPro Realty Network, as parent company Fathom Holdings Inc. executes on its previously announced plans to acquire smaller real estate brokerages in new markets.
While iPro provides services throughout Utah, it’s particularly dominant in St. George, Cedar City, Orem, Salt Lake City, Clearfield and Midway, Fathom said, with the company racking up more than $1.25 billion in residential sales volume in 2021 as it surpassed 2,900 transactions.
“Utah boasts one of the country’s fast-growing real estate markets, and we are pleased to be expanding our geographic presence through iPro, a company that values and strives for excellence,” Fathom Holdings founder and CEO Josh Harley said in a statement. “We are also proud to serve alongside iPro’s leadership team, who shares our commitment to servant leadership as we build critical mass in existing local markets and expand into new markets across Utah.”
Like Fathom, iPro Realty Network offered a scalable, flat-fee, 100 percent commission structure.
“Our agent-centric philosophy aligns very well with Fathom’s servant-leadership culture, putting agents first so they can better serve their communities and clients,” iPro Realty Network founder and principal broker Bill Telford, said in a statement.
An end-to-end real estate services platform that integrates residential brokerage, mortgage, title, insurance and software-as-a-service offerings to brokerages and agents, Fathom Holdings went on an acquisition spree after going public in July 2020.
Initially, Fathom concentrated on buying companies that expanded its capabilities and services, including title insurance provider Verus Title, home search and customer relationship management (CRM) company Naberly Solutions and market data and technology platform LiveBy. Last year’s acquisition of E4:9 Holdings added Encompass Lending Group, Dagley Insurance Agency and Real Results to the company’s portfolio of brands.
After raising close to $33 million through an additional public stock offering in November, Fathom said it would accelerate growth by acquiring smaller real estate brokerages.
After breaking into the Idaho market last June with the acquisition of 350-agent Epic Realty LLC, a Meridian-based real estate brokerage, Fathom announced in November the addition of Eagle-based Woodhouse Group Real Estate, bringing Fathom Realty’s agent count in Idaho to 400.
The 835 agents Fathom has added through three acquisitions in the last eight months brings the company’s total agent count to more than 8,000 in 34 states and Washington, D.C.
Fathom cites its proprietary cloud-based software, intelliAgent and a flat-fee, 100 percent commission structure as recruiting edges.
On Jan. 1, Fathom revised its commission structure for agents, increasing annual fees by 20 percent to $600, and transaction fees by 11 percent, to $500. After agents have completed 12 transactions, the fee drops to $99.
“We have done extensive market research and are confident that our compensation plans remain highly competitive and attractive to our current, as well as future agents,” Harley said in announcing the increase.
Over the last two years, Fathom agents have seen the commissions they earn on each sale increase by an average of $2,220, he said.
“We believe the fee increase, albeit small, will allow us to further improve our value proposition as we continue to invest in new technology and enhanced services, thereby attracting even more agents to our unique platform,” Harley said.
This week Fathom is rolling out intelliAgent 2.0, aimed at simplifying brokerage operations and agent transaction management.
New features include an enhanced CRM system, and new marketing resources for building and customizing personalized websites, sending video messages and launching multiplatform marketing campaigns.
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Email Matt Carter