Into Fathom Realty: A Deep Dive

Into Fathom Realty: A Deep Dive

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When I talk to other real estate agents, I can tell you that one topic always comes up. These discussions typically center on potential strategic moves to expand that agent's clientele. And a question about whether I believe a digital brokerage could be the best course of action for them has been raised more frequently of late.
In order for you to evaluate the three main digital brokerages available at the moment and make an informed choice on where to hang your license, I've been reading over each of them and trying to distill the most crucial information for you to know.
I, therefore, decided to give a brief evaluation of one of the more well-known digital brokerages available at the moment. There are five traits you should definitely pay particular attention to while choosing any brokerage, especially a digital brokerage.

  1. Compensation
  2. Commercial Tools
  3. Training
  4. Agent Assistance
  5. Company

 

Compensation Schedule

This is a powerful and alluring feature that is quite crucial. Since Fathom Realty is a 100 percent owned business, your commission will not be split with Fathom. One hundred percent of the commission is yours to keep. Of course, there are now costs to make up for it.
The first is a $450 cost known as the precap transaction fee. Additionally, there is a $99 post-cap transaction fee. Additionally, there is a $500 annual flat cost.
So, going back to the precap transaction, you keep all of the commission on your first 12 transactions and only have to pay a flat cost of $450. After your 13th transaction, your fee decreases from $450 to $99 per transaction. The company will then charge you a flat fee of $500 per fiscal year, which will be deducted from your first closure.
What I've discovered is that splits can appear to be really inexpensive or extremely expensive, but you can never be sure unless you look at the expenses in the context of creating a forecast or a scenario. So let's go ahead and do it.
Let's say you worked at Fathom and closed 12 deals, am I correct? Let's then assume that the gross commission for a typical contract is $7,500. An average sale price of $250,000 would result from that. With an average commission of about 3%, those 12 transactions would generate a gross commission of $90,000.
Each of those 12 transactions costs you $450. Your overall transactional fees to Fathom are therefore $5,400. Therefore, there were no $99 fees; instead, you paid a fixed charge of $500. Fathom costs you 7% of the $90,000 because they take $5,900 out of it, leaving you with a profit of $84,000. It is equivalent to a 93/7 split. If so, does it make sense? In other words, since there are always fees to take into account, there really is no such thing as a 100% broker.
Even simply looking at the costs, it still represents a fantastic value. Let's continue with this and say that you went from 12 to 18 sales. Just kind of keep an eye on how these numbers develop. Therefore, in this case, the 18 agreements you completed resulted in a gross commission income of $135,000.
You paid the $5,400 precap transaction cost, but after capping at 12 transactions, the net fee dropped to $99, and you then paid the $500 flat fee. Therefore, I estimate that Fathom's total costs in this example were around $6,500.
You brought in $135,000 but only made $128,000 after expenses. You ultimately pay a commission of around 5%. In the end, this is equivalent to being on a 95/5 split.
To an agency, this arrangement is extremely lucrative. Fathom is a really good option in terms of costs.

 

Standard Program

Similar to eXp Realty, Fathom is a publicly traded business on the NASDAQ, and as such, it offers a comprehensive stock award program. I'm going to go over some information you should be aware of regarding stock award plans with publicly traded corporations, particularly in the real estate sector.
They have subtle differences, and they can change. Currently, Fathom rewards its agents for inviting additional agents to the business. They reward you with stock awards when you do it. So they would pay you $500 worth of stock if you invited one agent to the business, right? You would each receive $1,000 worth of stock if you had two or three agents. I want you to consider the fact that you would receive $2,500 worth of stock if you introduced three agents to the business.
The pricing point increases the more agents you bring. For instance, you receive $1,500 in stock rewards if you invite 6 to 10. Then you receive $2,000 for agents 11, 12, and 13. In other words, you would receive $16,000 in total stock rewards if you invited 12 agents to the company in a single year.
Another point is that whenever you get closings, Fathom Realty will also provide you with shares. The stock plan for Fathom has two main components. There is also the comp plan, which consists mainly of costs. There is also the stock program, which is connected to the hiring of agents. Together, those two factors could make up the entirety of your pay at Fathom.

 

Commercial Tools

When I mention digital brokerages, I frequently receive inquiries about business tools. Examples include: What do you get? Is it assembled for you, and how much does it cost?
This is quite significant. To put it simply, Fathom gives you access to the complete kvCORE CRM. CRM stands for customer relationship management tool and is a straightforward acronym. A real estate salesperson without a capable CRM is like a carpenter without a hammer in the post-COVID era, let me just say that.
This firm really requires a strong CRM. Additionally, kvCORE is a well-known CRM. The CRM may be obtained without necessarily being a Fathom customer, however, purchasing kvCORE directly would run you roughly $400 per month. With Fathom, it is unquestionably included. They will now claim that it is free, but you can counter that it is actually included in the $500 flat charge that you pay each year. You won't have to pay an additional cost for kvCORE, which is an excellent value.
A closer examination reveals that kvCORE has a number of extremely potent components. The first is their website stack, which may be personalized and will be integrated with your MLS. A live analyst feed is available. People may access real-time listings, set up listing alerts, and interact with you online. Even better, you can communicate with these potential clients and customers online. So it's quite strong.
Then, your kvCORE CRM sits on top of these websites. The really fantastic thing about this is that you can contact with them and see when people are on the website, what they were looking at, how long they were on, and what they were looking at. You may construct automated campaigns that will launch automatically, as well as send bulk SMS, emails, and video communications. This will enable you to maintain continuous, beneficial contact with a far bigger set of prospects. This is extremely crucial right now, especially in a market with limited inventory where you need to communicate with much more people to produce the same number of closes as, say, five years ago.
If you go to the course market, correct? It is quite simple to create leads for locations. Simply click a button to create leads for Google pay-per-click advertising, or visit Facebook to do so. You may also go to CORE Property Boost, which is a really wonderful tool for running a full social media campaign on a listing with just one click of a button when you take a listing.
Your sellers will be able to notice their listing on Facebook even if you have no idea how to execute a social media campaign. As a result, you will be able to sell that listing for more money now that Facebook will draw more attention to it.
Finally, a lot more leads will be generated for you as a result of people seeing that listing. They're going to ask questions and demand showings, and you're going to try to sell them something else. So, that is how one transaction becomes two.

The fact that kvCORE is an all-in-one solution for your websites, CRM, and, potentially, paid marketing campaigns, if you choose to run them, is another aspect of it that I enjoy. You can get this at Fathom for about $500 a year, which is a fantastic price.
Additionally, Fathom provides a unique platform for managing transactions. When a purchase offer is accepted in a digital brokerage, you must provide this paperwork, known as IntelliAgent, for your broker to review. There is a little more to it in a digital brokerage than there is in a traditional one. In a traditional brokerage, you can simply make a copy of that paperwork and give it to the secretary or scan it and email it to someone.
You load your documentation into IntelliAgent, a platform that is comparatively easy to use, and this enables you to manage your papers more effectively. It includes a really good e-signature tool that enables you to get your documents electronically signed, and you can manage the whole process from your IntelliAgent account. It also enables your broker to examine and evaluate the documents.
The idea is that Fathom and IntelliAgent—which, once again, comes at no additional cost to agents—will serve as your websites, CRM, and transactional management platform. All of it is paid for by the $500 flat charge you pay with the proceeds of your first transaction each fiscal year. Once more, a good deal.

 

Training

There isn't a physical office to visit when it comes to a digital brokerage like Fathom. As a result, you should carefully assess the training options offered to agents.
The four categories that Fathom breaks down their training into are basically what I'm going to start with: their mentor fast program.

 

Fast Mentoring Program

Fathom does have a program created for you if you are a new agent who has completed either zero or few deals. There is a complete curriculum designed for that, and you will be assigned a mentor who will work directly with you on the transactional aspect of being a real estate agent.
Second, you have a variety of training choices if you're an agent with more experience and don't necessarily need a mentor. The highly comprehensive Video Training Library comes first.

 

Video Training Library Upon Request

You can view literally hundreds of films on a variety of topics related to being a real estate agent in Fathom's extensive training library. Therefore, you simply need to be prepared for watching lots of films. It will take hours to view hours and hours of prerecorded content on every crucial aspect of becoming a real estate agent. So you won't receive as much classroom contact as you would like.
You can watch the videos at your own leisure, but the agents who appear there are trained. The training material is readily accessible and extremely extensive. That is therefore really crucial.

 

Virtual Live Training

There are district managers, and occasionally these district managers may conduct live training sessions. Usually, these will be in a live webinar-style instruction that anybody can attend.

 

Personal Instruction

Then there are areas of the nation where instruction is conducted in person. This training does take place, though somewhat at the district manager's discretion.
You merely need to be aware that if you're new to Fathom, you enter the Mentor Fast Program. You'll spend the majority of your time watching these recorded videos once you complete the Mentor Fast Program.
You'll spend the majority of your time searching through the video library to identify the topics that apply to you since, as an experienced agent, you won't be enrolled in the Mentor Fast Program. As a result, you'll watch those films.
Then you can take advantage of the live training as they occur. So, in a nutshell, that's how Fathom approaches training.

 

Agent Assistance

There are essentially two methods for getting assistance with Fathom.
A number of district managers work with Fathom. These are agents and brokers who have been allocated U.S.-based regions where Fathom is authorized to practice and conduct business. You're going to go to the district director when you have problems, right? You can phone the district director, send them an email, or direct message them.
You can also get in touch with the full agent services unit in the same way. Therefore, you essentially have two options: speak with your district director or contact agent services.
The idea is that between these two choices, all of your real estate agent queries regarding transactional support should be covered.
You must be aware of and comprehend the fact that you will receive tech help or agent support in a very, very digital manner. Direct messaging, email, or voice, which may be a cell phone call or potentially a video chat.

 

Company

Here are a few things to be aware of: About 2,000 agents work for Fathom, which has stock listed on the NASDAQ and is present in 26 states. Consider that there are approximately 70–80 agents on average in each state where Fathom operates if you take 2,000 and divide it by 26.
Therefore, with Fathom, you just have to consider if you're the type of agent who truly enjoys hanging out with other agents. There won't be many agents in your neighborhood, and if you live in a small town or a secondary market, the number will likely be significantly lower. It seems to reason that there will be more in the larger cities and markets. The likelihood of you physically being with other agents nearby is unlikely, so you only need to decide if you're the kind of agent who genuinely enjoys communication technologies.
What's remarkable is that, while only operating in 26 states and employing 2,000 agents, Fathom is currently ranked number 22 on Real Trends' list of the 500 largest brokerages in the country. That's a huge achievement.
Then, healthcare is one of the perks you receive with Fathom. They have a fantastic healthcare program, and you know how important healthcare is to us as real estate agents? It is convenient to have that kind of option available for many people.
To put it simply, Fathom, your pay structure is a 100 percent commission split. You keep 100%, and after that, there are a few straightforward fees. You could expect to pay between 3 and 8 percent of your entire transactions to Fathom. It's quite easy to do and inexpensive.
You run a stock program, but it's dependent on recruiting. Therefore, if you're the kind of agent who doesn't think you'll be able to recruit, simply be aware that the chances of you receiving stock awards are slim.
The instruments for business are excellent. The price to own kvCORE is quite low, and IntelliAgent is a very good platform for transactional administration. It is included in the fixed charge of $500.

The mentor program, in my opinion, is the training's strongest component. Therefore, it's beneficial to have a mentor who is interested in you personally. Where I believe the training may fall short is if you are an experienced agent in need of specialized training, you will either have to search through the library of previously recorded training to find what applies to you, or you will have to hope that one of the live training that are scheduled will cover that subject. If you have experience, you are undoubtedly accustomed to receiving training from a variety of sources; nonetheless, I am merely pointing out potential areas of strength and weakness.
Having a district director and access to agent services makes agent support quite simple. If you have a problem and require support, those are the locations you will go to.
Many positive reviews of the organization as a whole can be found online from Fathom agents who genuinely appreciate the brokerage.
It's still quite tiny, with 2,000 agents spread over 26 states, which could lead agents to feel a little isolated. But I believe Fathom is a player based on its performance as indicated by Real Trends. Watching to see if Fathom gains much traction will be intriguing.

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