Consistency Over Cycles: Tom Kavanagh on Empowering the Next Generation of Homebuyers

For many young adults, the path to homeownership feels like hiking uphill with a heavy pack—navigating data overload, rising prices, and conflicting advice. As a longtime professor of personal finance and a former banking executive, I’ve seen how even the most prepared students can struggle to make the leap from renting to buying. That’s why I sat down with Tom Kavanagh, Co-founder and Director of Growth at Fulcrum Residential, for a conversation that cuts through the noise and re-centers homebuying around clarity, confidence, and consistency.

Tom is more than a top-producing agent—he’s a systems builder. Raised by two Realtors, Tom witnessed firsthand the volatility of the real estate business: one day you’re eating steak, the next it’s beans. “I remember guys who’d been in the business 50 years, still driving Cadillacs with bald tires,” he said. That memory inspired him to build something better—an enterprise focused on training, structure, and long-term client success.

The Value of Consistency in a Cyclical Market

With housing transactions down more than 40% in many markets due to interest rate pressures and tight inventory, real estate professionals are facing the same fate as many loan officers: burnout or exit. But Fulcrum is bucking the trend. “We’re taking market share,” Tom explained. “Because we invest in consistency.”

That consistency starts each morning at 8:30 a.m. with a team huddle and role-play session. Agents spend the next two hours proactively contacting clients and nurturing leads. “Most agents like houses and people—but they avoid structure. That’s the glitch,” Tom said. Fulcrum’s discipline enables its team to ride out down cycles and emerge stronger.

Not All Buyer’s Agents Are the Same

One of Tom’s biggest concerns? The inconsistent quality across buyer’s agents. “The barrier to entry is low,” he said. “Some agents sell three houses a year through church or PTA contacts. That’s not OK when people are spending hundreds of thousands of dollars.”

That’s why Fulcrum has built a three-pronged onboarding and mentorship model. New agents shadow Tom and senior mentors for 90 days. They train rigorously across contracts, listing strategy, and buyer representation—and they’re required to earn certifications in areas like open houses and negotiation. “This is a serious business. Our buyers deserve serious professionals.”

The Shifting Landscape of Buyer Representation

Tom also addressed recent legal and industry shifts around how buyer’s agents are paid. While past norms had the seller effectively paying both sides of the deal, a $3 billion lawsuit changed that narrative. “Now it’s clear: the buyer’s agent works for the buyer, and it must be in writing,” Tom said. That hasn’t significantly changed his approach—he’s always been transparent about his 2.5% fee—but it’s pushed the industry toward greater professionalism.

Importantly, Tom argued that trying to unbundle buyer services—treating negotiation, legal review, and local insights as à la carte—is a mistake. “The savings usually aren’t worth the stress. And you lose the protective layer a good agent provides.” Transaction costs, both emotional and logistical, are real—and good agents lower them.

Reducing Overwhelm Through Structure and Technology

As I shared with Tom, one of the toughest challenges my students face is managing the flood of homebuying data. In our JMU class, we simulate the homebuying process through small group projects using the Definitive Choice app. This isn’t just about picking a house; it’s about negotiating priorities with a partner and learning how trade-offs work in real life.

Tom has served as a panelist in that simulation multiple times. “It’s like watching a couple in my car try to figure out what matters,” he said. “Only now they’ve already had the conversation. The tech gets them on the same page—so when we hit the market, we’re aligned.”

But data alone isn’t enough. “Buyers still want someone they trust to say, ‘Yeah, this is a good decision.’ It’s part art, part science,” he added.

Neighborhood Wisdom You Can’t Find Online

Even the best platforms don’t reveal everything. Tom recounted a house in Capitol Hill with a gorgeous backyard deck—but he warned the buyers: “You’re going to have a massive rat problem.” They passed on the house.

This kind of street-level wisdom—like zoning changes, upcoming developments, or infrastructure concerns—is often invisible in Redfin or Zillow. “Good agents live in the neighborhoods they serve. We call them neighborhood experts for a reason,” Tom said.

Advice for First-Time Buyers: Get in the Game

Tom’s final message was clear: don’t wait too long. “Renters average $10K in wealth. Homeowners average $400K. If you rent until you're 34, you’re in trouble.” His advice: buy on the edge of the neighborhood you want. Get roommates. Leverage tools and guidance. But start building.

“You don’t have to buy the perfect house—you have to start. As long as it’s affordable, that first step puts you on the wealth ladder.”