Having been in the Title business since 2005, I have seen many things as it relates to methods used by Title Companies to generate business. When I was a Title sales rep in Phoenix, AZ most of the major Title Companies had sales teams. These salespeople would lead generate Realtors and lenders to create Title orders for their company. There were some companies that had joint ventures or MSA’s (market service agreements) but they were not prevalent. Mostly because of the many Title salespeople each company had that caused the “capture rate” of those agreements to be pretty low. When I moved to the Washington DC area, I found the opposite is true. Most Title Companies had joint ventures or other agreements in place and very few employed salespeople who generated the organic business. Let’s discuss the two different Title Company business models, how they work and the major differences.
This is not a blog about how amazing Stewart Title is because we have the best service, escrow staff, etc. Everyone says that about their company. I want to talk about the REAL differences that influence and affect YOU…our clients. Settlement and Title Companies are everywhere in each market. Figuring out who to use to support your business can be tough, especially if they essentially all do the same things. Realtors are viewed the same way. If you don’t have at least one strong value proposition, you are in trouble as consumers will view you as the same as other Realtors.
Most real estate agents and mortgage lenders have some sort of Title Company relationship. Some are stronger and more loyal than others, some of these relationships are due to a joint venture or Market Service Agreement. But are all Title Companies the same? Definitely not! Just like not all real estate brokerages are the same. With that said, Title Companies are key vendors for agents and lenders to leverage to get their deals closed and help them in the expansion of further business. So how do you know when you are working with a good company? When do you know that it is time to make the “switch” to someone else? Here are the 3 major signs you should switch your Title Company relationship right now.
I don’t want the title of this blog to scare you but at the same time the CFPB(Consumer Financial Protection Bureau) is out and about looking at Real Estate Companies, Title Companies, and Mortgage Lenders. What are they looking for? They are looking for suspicious and illegal activity that would warrant a fine, and in many cases very large fines. On the East coast and especially the Northern Virginia area there are many Real Estate Joint Ventures. The Join Ventures are usually between the Real Estate company and the Title Company. With the CFPB out in full force is your Real Estate Joint Venture set up correctly and safe?