Fathom Holdings Inc. has announced a significant expansion of its subsidiary, START Real Estate, a company specializing in assisting first-time homebuyers. The initiative will initially launch in Utah, Arizona, and Nevada, with a broader goal of operating in more than 15 states within the next year.
This strategic move is designed to tap into the large and growing market of new homeowners, leveraging Fathom's proprietary technology to streamline the buying process. The expansion aims to integrate Fathom's mortgage and title services more deeply, building on START's successful model.
Key Takeaways
- START Real Estate, a subsidiary of Fathom Holdings, is expanding its operations into Utah, Arizona, and Nevada.
- The company plans to enter more than 15 states over the course of the next year.
- The expansion focuses on the first-time homebuyer market, a demographic identified as a key growth segment.
- Fathom aims to leverage its technology platform to support the expansion and increase its mortgage and title service integration.
A Strategic Push into New Markets
Fathom Holdings is setting in motion a nationwide growth strategy for its START Real Estate brand. The initial phase of this expansion targets the Southwestern United States, with operations commencing in Utah, Arizona, and Nevada. Company officials confirmed this is the first step in a more ambitious plan to establish a presence across a significant portion of the country.
Marco Fregenal, CEO of Fathom Holdings, detailed the vision behind the move. "We are excited to announce the beginning of the expansion of the START team across the U.S.," he stated. The choice of these initial states is strategic, aiming to introduce Fathom's comprehensive suite of services, including title and settlement expertise, to a new and expanding client base.
The expansion is not just about geographic reach; it's about integrating Fathom's various business lines. By bringing START's model to new regions, the company anticipates driving growth in its mortgage, title, and technology divisions, creating a more cohesive service ecosystem for consumers.
Focus on First-Time Homebuyers
The core of START Real Estate's business model is its focus on first-time homebuyers. This group represents one of the largest and most consistently growing segments of the U.S. housing market. However, navigating the complexities of a first home purchase can be a significant barrier. START aims to simplify this journey, providing specialized guidance and support.
Leveraging Technology for Growth
Technology is a cornerstone of Fathom's expansion strategy. The company plans to utilize its proprietary cloud-based software, intelliAgent, to scale the START program efficiently. This platform is designed to support real estate agents and streamline transactions from start to finish.
Randy Bell, the co-founder of START Real Estate, emphasized the importance of this technological backbone. "When we joined Fathom, our shared vision was to take the START program nationwide," Bell explained. "With Fathom's intelligent technology platform, extensive geographic footprint, and the strength of the Elevate program, we're well positioned to accelerate growth."
Bell also highlighted a critical market need that the expansion seeks to address.
"The first-time homebuyer segment remains largely underserved, and through Fathom's proprietary technology, we can help more families achieve the dream of homeownership."
By combining human expertise with a powerful tech platform, Fathom and START believe they can offer a superior experience to new buyers who might otherwise feel overwhelmed by the process.
Proven Success in Mortgage Services
A key performance indicator for START Real Estate has been its ability to integrate mortgage services seamlessly into the home buying process. According to CEO Marco Fregenal, the program has a proven track record of achieving an over 70% mortgage attach rate. This figure represents the percentage of real estate clients who also use the company's affiliated mortgage services. Fathom expects to replicate this high level of integration as it expands into new states.
The Broader Business Impact
For Fathom Holdings, this expansion is about more than just selling homes. It is a calculated move to unlock new revenue streams and strengthen its overall market position. Each new market for START Real Estate also becomes a new market for Fathom's other brands, including Encompass Lending (mortgage) and Verus Title (title insurance).
This integrated approach offers several advantages:
- Increased Revenue: Capturing a larger share of the transaction, from the real estate commission to the mortgage and title fees.
- Client Retention: Providing a smoother, all-in-one experience can lead to higher customer satisfaction and referrals.
- Operational Efficiency: Using a single technology platform across different services can reduce costs and streamline communication.
The company's leadership is confident that its national agent network and industry-leading technology provide a solid foundation for scaling the START program effectively. The move is seen as a direct pathway to broadening access to homeownership while simultaneously creating sustainable growth opportunities for the parent company, Fathom Holdings Inc.
