Fathom Holdings Inc. entered into a strategic partnership with ByOwner, the leading for‑sale‑by‑owner (FSBO) marketplace, on November 7, 2025. The deal creates a direct pipeline that allows ByOwner’s more than 500,000 monthly visitors to be routed to Fathom’s nationwide network of agents when sellers or buyers need professional support. In return, Fathom agents gain access to a motivated pool of FSBO leads and receive a larger commission split on each transaction that originates from the partnership.
The FSBO segment represents roughly 6 % of all U.S. home sales, a figure that has remained stable in recent years. Of those listings, more than 20 % eventually transition to full‑service representation, a conversion rate that underscores the persistent demand for professional assistance even among owners who initially choose to sell independently. By capturing this segment, Fathom can add a new source of high‑intent leads that are already engaged in the buying or selling process.
Under the referral model, ByOwner will forward qualified FSBO sellers and buyers to Fathom agents when they indicate readiness for a full‑service transaction. Fathom agents, in turn, will handle the entire transaction, from listing to closing, and will receive a higher commission split on the resulting sale. The partnership is designed to increase Fathom’s transaction volume, enhance cross‑sell opportunities for its mortgage and title services, and strengthen its competitive position in a market that increasingly favors low‑overhead, technology‑driven brokerage models.
Fathom’s recent financial performance provides context for the partnership’s potential impact. The company reported a GAAP net loss of $3.6 million in Q2 2025, a significant improvement from the $1.3 million loss in Q2 2024, and a gross profit margin of 8.24 %, down from 9.0 % in the prior year. These figures reflect ongoing margin compression driven by higher operating costs and a shift toward lower‑margin transaction volumes. By adding a new, high‑intent lead source, Fathom aims to offset margin pressure with increased revenue and cross‑sell income from its ancillary services.
CEO Marco Fregenal said the partnership “unlocks a large, underserved market segment and gives FSBO sellers a clear path to professional support while expanding our agents’ pipeline of high‑quality listings.” ByOwner CEO Colby Sambrotto added, “We empower sellers with a choice; partnering with Fathom gives them access to top‑tier agents when they need it.” The comments highlight the strategic intent to capture a growing segment of the market and to deepen the company’s service offering.
The partnership is expected to provide a tailwind for Fathom’s growth trajectory. By converting a portion of the FSBO market—an area that historically sees a 20 %+ conversion rate—Fathom can increase transaction volume, generate additional commission revenue, and cross‑sell its mortgage and title services. The deal also positions the company to better compete against other low‑overhead brokerages that are expanding their technology platforms, thereby reinforcing Fathom’s market relevance in a rapidly evolving real‑estate landscape.
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