In this comparison of Fathom vs Redfin, weβll explore key differences in commission structures, fees, and agent opportunities to help agents choose the best brokerage for their career growth.
Commission Splits and Fees
Fathom Realty offers a 100/0 commission split, meaning agents keep 100% of their commissions. There is no franchise or royalty fee, and Fathom Realty does not impose a production cap, allowing agents to earn without limits. Fathomβs annual fee is $700, and agents are required to pay a flat transaction fee ranging from $150 to $250, which does not change based on sales volume. Errors and omissions (E&O) insurance is included at no additional cost, adding to the cost-saving benefits.
Redfin operates differently, offering salaried positions to agents rather than traditional commission splits. Agents at Redfin receive a 30/70 to 75/25 split on transactions, meaning Redfin takes 70-75% of the commission while agents retain 25-30%. However, Redfin does not charge any franchise or royalty fees, and agents do not have to worry about a cap or additional transaction fees. The monthly fees are $0, but the overall earnings are typically lower than those at traditional brokerages like Fathom.
Income Opportunities
Fathom Realty focuses on commission-based earnings, with no additional income streams like revenue share or bonuses for recruiting new agents. However, agents benefit from keeping 100% of their commissions after fees, allowing high earners to maximize their take-home income.
Redfinβs model differs in that agents are salaried, so they receive a steady income even if they are not closing transactions. This can be attractive to agents seeking financial stability, but it limits the potential for high earnings. Redfin does not offer a revenue share program, retirement income path, or willable income options, further limiting income opportunities.
Training and Support
Fathom Realty does not provide training programs or 24/7 agent support, which may be a downside for newer agents or those who value ongoing education and guidance. Agents are expected to be self-sufficient and resourceful when it comes to finding professional development opportunities.
Redfin offers a more structured training system, including four weeks of local training, which can be helpful for newer agents or those unfamiliar with the market. However, there is no 24/7 agent support, which can be limiting for agents who need assistance outside of regular business hours.
Technology and Resources
Fathom Realty focuses on providing agents with the tools they need to succeed but does not have a proprietary technology platform. Agents are responsible for selecting their own tools for CRM, marketing, and lead generation.
Redfin, by contrast, heavily invests in technology and provides agents with leads, a CRM system, and marketing resources. This tech-driven approach helps agents focus on servicing clients without worrying about generating their own leads, though it limits their commission split.
Agent Satisfaction
Fathom Realty has a strong Glassdoor rating of 4.6 stars based on 425 reviews, with agents praising the commission structure and cost savings. However, some agents have noted the lack of training and support as a downside.
Redfin holds a lower Glassdoor rating of 3.6 stars from 1.9K reviews. While agents appreciate the steady salary and tech resources, many feel that the reduced commission splits and lower income potential are significant drawbacks.
Final Thoughts on Fathom vs Redfin
Fathom Realty is an excellent choice for experienced agents who value keeping 100% of their commissions and are comfortable working independently. The lack of additional fees and solid agent satisfaction ratings make it a top contender for agents looking to maximize their income.
Redfin, on the other hand, is best suited for agents seeking a steady income and a technology-driven environment. While the commission splits are lower, the access to leads and tech tools may appeal to agents who prefer a more structured and supportive work environment.
For more in-depth comparisons, check out ourΒ eXp vs traditional brokerage comparisonΒ andΒ online brokerage comparisonΒ pages. Explore the advantages each brokerage offers, and donβt forget to see why many agents are turning toΒ eXp RealtyΒ for even more opportunities.
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