Fathom Holdings Inc. (NASDAQ: FTHM) shares experienced a resurgence during the extended trading session on Tuesday. In after-market session, Fathom stock exhibited a notable uptick of 12.59%, reaching $2.59, effectively mitigating a prior 16.67% decline observed in the regular session that concluded at $2.30. This positive movement in FTHM stock ensued subsequent to a strategic business maneuver.
Fathom Realty, a wholly owned subsidiary of Fathom (FTHM), has officially declared a modification to its fee structure for real estate agents, slated to take effect from January 1, 2024. Fathom Realty is distinguished for presenting an industry-leading commission framework, acknowledging the unwavering efforts and commitment of FTHM agents, all while furnishing them with essential resources for optimal performance.
Fathom anticipates that the marginal increase in agent fees will exert negligible impact on its agents, concurrently facilitating the realization of our corporate objectives and an enhanced suite of offerings for our agents. FTHM foresees this adjustment contributing an estimated $3.1 million in EBITDA for the fiscal year 2024.
The revised fee structure at Fathom Realty comprises two primary alterations. Firstly, there will be an elevation in the agent’s annual fee, levied on the initial transaction in each anniversary year, escalating from $600 to $700.
Secondly, a novel fee, designated as the ‘High-Value Property Fee,’ will be introduced, impacting property sales exceeding $600,000. This fee is supplementary to the existing agent transaction fee of $550. For properties valued from $600K to $999,999, the ‘Premium Residence Levy’ escalates by $200. Additionally, with each additional $500K beyond the $1M mark, an extra $250 fee applies.
Fathom Realty remains steadfast in its commitment to furnishing unparalleled support and resources for its agents. In tandem with the evolving landscape of the real estate industry, FTHM is unwavering in its pursuit of innovative strategies to empower its agents to attain peak performance. The introduced adjustments are meticulously designed to align with this overarching objective of fortifying Fathom’s support infrastructure for its agents.
