Fathom Holdings Acquires START Real Estate to Expand First-Time Homebuyer Program Nationwide

Rhea-AI Summary

Fathom Holdings (Nasdaq: FTHM) acquired START Real Estate on Oct. 16, 2025 to scale a first-time homebuyer program nationwide.

START Real Estate is headquartered in Colorado, recently expanded into Utah, and has 70 agents expected to close ~400 transactions in 2025 with a mortgage attach rate exceeding 70%. Fathom plans to combine START's model with its intelliAgent platform, integrated mortgage and title services, and the Elevate agent plan to drive transaction volume, agent productivity, and higher-margin recurring revenue across Fathom's ~15,000 agents in 43 states and D.C.

Positive

• 70 agents added from START Real Estate
• Expected ~400 transactions from START agents in 2025
• Mortgage attach rate exceeding 70% at START Real Estate
• Integration with intelliAgent, mortgage and title to enable recurring, higher-margin revenue
• Access to Fathom's ~15,000-agent national footprint (43 states + D.C.)

Negative

• None.

Insights

M&A analyst

Acquisition expands Fathom's first-time buyer footprint via a 70‑agent team with high mortgage attach and ~400 projected transactions this year.

Fathom Holdings acquires START Real Estate, adding 70 agents and a program focused on first-time buyers. START expects to close approximately 400 transactions this year with a mortgage attach rate above 70%, and many agents are expected to join Fathom's Elevate plan. The deal ties a specialized buyer program to Fathom’s intelliAgent platform and in-house mortgage and title services.

The business mechanism is clear: converting START’s first-time buyer volume into recurring, higher‑margin ancillary revenue through mortgage, title, and subscription plans. Material dependencies include agent conversion to the Elevate plan, actual transaction follow‑through at the stated pace, and integration of START’s program into Fathom’s platform at scale. Risks stem from execution of agent onboarding and preserving START’s buyer-focused model as it expands.

Concrete items to watch are START’s agent migration to Elevate, the realized mortgage attach rate versus the stated 70%, and whether the group achieves the projected ~400 closings this year. Near-term visibility centers on integration milestones over the next several quarters and transaction metrics reported for the current year ending Oct 16, 2025.

CARY, N.C., Oct. 16, 2025 /PRNewswire/ -- Fathom Holdings Inc. (Nasdaq: FTHM), a national, technology-driven real estate services platform integrating residential brokerage, mortgage, title, and SaaS offerings, has acquired START Real Estate, a residential brokerage dedicated to serving first-time homebuyers.

Headquartered in Colorado, with recent expansion into Utah, START Real Estate's 70 agents are expected to close approximately 400 transactions this year with a mortgage attach rate exceeding 70%. Founded by Randy and Terri Bell, START Real Estate has developed a proven model for guiding first-time buyers through the homeownership journey, a demographic representing one of the largest and fastest-growing segments of the U.S. housing market.

We expect that combining START Real Estate's first-time buyer program with Fathom's proprietary intelliAgent platform, integrated mortgage and title businesses, and national footprint, will scale the first-time buyer program to new markets across the country. In addition, a significant percentage of START Real Estate agents are expected to join Fathom's Elevate plan, further driving transaction growth, agent productivity, and higher-margin recurring revenue opportunities.

"After helping thousands first time home buyers in Colorado and Utah, we are excited to partner with Fathom and leverage our experience with both the intelliAgent platform and the Elevate plan to expand our first-time buyer program nationwide," said Randy Bell, co-founder of START Real Estate. "Together, we can help more families realize the dream of homeownership with better tools, support, and guidance at every step."

Marco Fregenal, CEO of Fathom Holdings, commented: "START Real Estate's strong transaction growth, remarkable mortgage attach rate, and dedicated team of 70 agents are a perfect fit with our strategy of expanding agent and transaction volume while driving higher margins through ancillary services. With many of START Real Estate's agents expected to join Elevate, this acquisition not only enhances our ability to serve a critical segment of the market, but also strengthens our platform with new recurring, high-margin opportunities that support long-term profitable growth."

With nearly 15,000 agents across 43 states and D.C., Fathom is uniquely positioned to integrate START Real Estate's first-time buyer program into its national platform, broadening access to homeownership while creating new revenue streams through mortgage, title, and technology services.

About Fathom Holdings Inc.
Fathom Holdings Inc. is a national, technology-driven, real estate services platform integrating residential brokerage, mortgage, title, and SaaS offerings to brokerages and agents by leveraging its proprietary cloud-based software, intelliAgent. The Company's brands include Fathom Realty, Encompass Lending, intelliAgent, LiveBy, Real Results, Verus Title, and Cornerstone. For more information, visit www.FathomInc.com.

Cautionary Note Concerning Forward-Looking Statements
This press release contains "forward-looking statements" that involve risks and uncertainties which we expect will or may occur in the future and may impact our business, financial condition and results of operations. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including risks associated with general economic conditions, including rising interest rates; the Company's ability to generate positive operational cash flow; risks associated with the Company's ability to continue achieving significant growth; the Company's ability to continue its growth trajectory while achieving profitability over time; risks related to ongoing and future litigation; and other risks as set forth in the Risk Factors section of the Company's most recent Form 10-K as filed with the SEC and supplemented from time to time in other Company filings made with the SEC. Copies of the Company's Form 10-K and other SEC filings are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release except as required by law.

Investor Contact:
Matt Glover and Clay Liolios
Gateway Group, Inc.
949-574-3860
FTHM@gateway-grp.com

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SOURCE Fathom Holdings Inc.

FAQ

What did Fathom Holdings (FTHM) announce on October 16, 2025?

Fathom announced it acquired START Real Estate to expand a first-time homebuyer program nationwide.

How many agents did START Real Estate contribute to Fathom's platform in the FTHM acquisition?

START Real Estate brings 70 agents to Fathom's platform.

What transaction and mortgage metrics did Fathom cite for START Real Estate in the FTHM deal?

START agents are expected to close approximately 400 transactions this year with a mortgage attach rate > 70%.

How will the START Real Estate acquisition affect Fathom's revenue opportunities (FTHM)?

Fathom expects the acquisition to drive transaction growth and higher-margin recurring revenue via mortgage, title, and the Elevate plan.

Will START Real Estate agents join Fathom's Elevate plan after the FTHM acquisition?

A significant percentage of START agents are expected to join Fathom's Elevate plan, per the announcement.

How large is Fathom's agent network after the START Real Estate acquisition (FTHM)?

Fathom reported having nearly 15,000 agents across 43 states and D.C., now including START's team.