Cary real estate firm acquires major brokerage in Arizona

STORY HIGHLIGHTS

A residential real estate brokerage and tech firm based in Cary is expanding its reach with its latest acquisition.

Fathom Holdings Inc. (Nasdaq: FTHM) has acquired Arizona-based My Home Group as the platform works to grow its Southwest reach. My Home Group ranks 27th in the nation for transaction volume and has 2,200 agents.

My Home Group will retain its name and remain led by co-founders Jereme Kleven and Mark Hutchins. Financial details of the acquisition were not released.

“Joining the Fathom family gives us the scale we need to drive deeper growth in Arizona and the Southwest. There’s no other company we’d trust to take our vision to the next level,” Hutchins said in a news release. “With Fathom’s technology, innovative commission plans, and dedication to agent success, we’re poised to elevate our impact and efficiency.”

My Home Group was founded in 2005 and does 12,000 transactions annually.

Fathom CEO Marco Fregenal, who took over for founder Josh Harley in late 2023, said he met the team at My Home Group about seven months ago and that the acquisition. The two companies share similar values in running operations and how they work with agents.

Joining with the Arizona company enables Fathom to not only have access to thousands of additional agents and their clients but to improve Fathom’s mortgage and title company.

“We have small offices in Nevada, California, Utah and then in Idaho. But this will be a significant increase. All our other options are very small compared to this. This significantly increases our presence on the West Coast, which sends a message that we are very excited about growing on the West Coast, and we’re going to accelerate our growth on the West Coast,” Fregenal said.

With that, the company will be looking to hire 25 to 50 people in the Arizona office over the next few years.

Fathom Realty, an arm of Fathom Holdings, has had an office in Cary for the past three years, but Fregenal said the company has had a presence in the town for the past 12 years. About 50 people work out of the Cary office, and the company will continue to hire locally.

Fathom Holdings is now in 43 states.

This is the company’s ninth acquisition since going public four years ago. The last one was in 2022. Fathom acquired LiveBy in 2021. Fregenal also bought a Raleigh restaurant in 2022.

The company’s stock closed at $2.38 Thursday, down 42 percent on the year.

For its third quarter of 2024, Fathom Holdings reported total revenue of $83.7 million, down from $93.5 million for the same period in 2023.

In September, Fathom announced it would pay nearly $3 million over two years into the settlement fund tied to the National Association of Realtors lawsuit.