Fathom Holdings Establishes Verus Title Elite - A Strategic Joint Venture with Fathom Realty Top Producers in Texas

Rhea-AI Summary

Fathom Holdings Inc. announces a strategic joint venture between its subsidiary Verus Title Inc and top producing agents of Fathom Realty in Texas. The joint venture, Verus Title Elite Texas LLC, aims to enhance the closing experience for clients and increase revenue and profitability. The partnership is exclusive to top agents, with plans to expand to more states by 2025.

Market Research Analyst

The formation of Verus Title Elite Texas LLC represents a strategic move by Fathom Holdings Inc. to consolidate its market presence and capitalize on the synergy between its various services. By creating a joint venture with top producing agents, Fathom is leveraging its internal network to potentially enhance revenue streams and improve profitability. The focus on Texas, being Fathom's largest market, indicates a targeted approach to strengthen its core business areas.

The joint venture model is designed to increase attach rates, which refers to the number of services clients use from a single provider. A higher attach rate typically leads to increased customer retention and higher revenue per customer. This initiative could set a precedent for the company's expansion strategy, with plans to replicate the model across more states, aiming for a significant presence by the end of 2025.

Real Estate Industry Expert

Verus Title Elite's establishment is expected to enhance the closing experience for real estate transactions, which is a critical factor in customer satisfaction and repeat business. The emphasis on delivering a higher level of support to agents could translate into more efficient and streamlined operations, potentially reducing closing times and improving the overall transaction experience for clients.

The strategic joint venture also signals a trend in the real estate industry towards integrated service platforms. By combining brokerage, mortgage, title and insurance services, Fathom is aiming to offer a more cohesive and convenient experience for clients, which could be a competitive advantage in a fragmented market.

Financial Analyst

From a financial perspective, the joint venture between Fathom Holdings Inc. and its top agents could influence the company's financial metrics. The expected increase in revenue and profitability from the venture should be monitored by stakeholders as it unfolds. It will be important to track the performance of Verus Title Elite against the investment made and the anticipated growth in attach rates.

Investors should also consider the scalability of this model and the associated risks, such as the dependency on the continued success of the top producing agents and the potential for market saturation. The execution of this strategy and its reception by clients in Texas will likely serve as an indicator for the viability of expansion into other states.

CARY, N.C., March 12, 2024 /PRNewswire/ -- Fathom Holdings Inc. (Nasdaq: FTHM) ("Fathom" or the "Company"), a national, technology-driven, end-to-end real estate services platform integrating residential brokerage, mortgage, title, insurance, and SaaS offerings for brokerages and agents, today announced that its subsidiary, Verus Title Inc ("Verus") has established a strategic joint venture with individual teams and top producing agents of Fathom Realty throughout Texas that is expected to increase Verus's and thereby Fathom's revenue and profitability. This new entity, Verus Title Elite Texas LLC ("Verus Title Elite"), strengthens Verus's existing presence in Texas and the enhanced strategic alignment should provide an elevated closing experience to Fathom agents and their clients. Verus Title Elite will commence operations on April 1, 2024 and the Company plans to expand this new joint venture model across more states in 2024 with the goal of reaching most states where Verus Title operates by the end of 2025.

"We are thrilled to form Verus Title Elite in response to feedback from our agents in Texas on ways to enhance the closing experience for clients while providing our top agents an opportunity to increase their income. This joint venture could prove to be a significant win-win for Verus Title and those top agents who participate. We believe it will deliver a higher level of support to our agents, and further increase our already growing attach rates in Texas," states Marco Fregenal, Fathom Holdings CEO. "This joint venture is exclusive to top producing Fathom Realty agents in Texas and is expected to provide an elevated closing experience to all who utilize the newly formed Verus Title Elite. We look forward to expanding this structure to other key markets throughout the year."

"We are excited to partner with top producing agents and teams in Texas to expand our title services through Verus Title Elite," said Paul Yurashevich, Verus Title's Founder and President. "This joint venture demonstrates our ongoing commitment to Fathom Realty agents and to strengthening our title operations across the country while supporting the accelerating demand we continue to see in Texas, which remains one of our top markets."

Fathom acquired Verus, its title agency subsidiary, in November 2020 to complement its suite of services in the residential and commercial real estate market. Since that time, Verus has expanded its footprint and currently operates in 30 states and the District of Columbia. Texas is Fathom's largest residential real estate market.

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

About Verus Title Inc.
Verus Title Inc. ("Verus") is a technology-based provider of title insurance services for the residential and commercial real estate markets. Verus currently operates in 30 states. Verus' mission is to improve the process of completing a real estate transaction, and enable real estate agencies and lenders to serve customers better. For more information, visit www.verustitle.com.

Cautionary Note Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, that the joint venture " is expected to increase Verus's and thereby Fathom's revenue and profitability" Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including: risks related to acquisitions; risks related to general economic conditions, including interest rates; risks in effectively managing rapid growth in our business; reliance on key personnel; competitive risks; and the other risk factors set forth from time to time in our SEC filings, copies of which 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:
Alex Kovtun and Matt Glover 
Gateway Group, Inc.
949-574-3860 
FTHM@gateway-grp.com

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SOURCE Fathom Realty

What is the name of the company mentioned in the press release?

The company mentioned in the press release is Fathom Holdings Inc.

What is the ticker symbol for Fathom Holdings Inc.?

The ticker symbol for Fathom Holdings Inc. is FTHM.

What is the name of Fathom Holdings Inc.'s subsidiary involved in the joint venture?

Fathom Holdings Inc.'s subsidiary involved in the joint venture is Verus Title Inc.

What is the name of the joint venture established by Verus Title Inc.?

The joint venture established by Verus Title Inc. is Verus Title Elite Texas LLC.

When will Verus Title Elite Texas LLC commence operations?

Verus Title Elite Texas LLC will commence operations on April 1, 2024.

In how many states does Verus Title currently operate?

Verus Title currently operates in 30 states and the District of Columbia.