As real estate professionals, one of our primary “partners” in every real estate transaction is a title company (along with lenders, appraisers, inspectors, stagers, landscapers, plumbers”, Visit Here for more professionals.
I was recently asked by a title company representative, “What is the most important thing a title company can do for you, a real estate broker?”
My response was simple:
Communicate.
Ask a home buyer or seller what is the most important thing their agent can do for them, and I bet you’ll find Communicate at or near the top of the list.
Communication is key in this business.
The Escrow Process
There are a TON of steps in the escrow process that have to be completed ”“ sometimes in a specific order, sometimes things can be done in parallel ”“ for a real estate transaction to close. It is important for the agent, and to a lesser extent the agent’s broker, to know when these steps are initiated and/or completed.
As such, communicating with the real estate agent is crucial for any title company. Some title companies communicate very well. Others”¦. let us just say, “not-so-much.”
Recently, First American Title company developed “myFirstAm”, and online tool that agents and brokers can use to search for property information, open escrow, calculate title and escrow fees and create “estimated cost sheets” for their clients. First American isn’t the first title company to do this, most major title companies provide some of these services. What puts myFirstAm ahead of their competition, as far as I can see, is the ability of this system to send text messages and/or emails when title and escrow processes are initiated and completed. The agent, the broker, and even the client can be set up to get all these notifications, or a user-definable subset of the services.
I was fortunate to be able to provide some input into this system prior to launch, and to help beta test it, and it really does solve the problem of communicating between title and agent/client. Gone are the sometimes incessant phone calls between agent and escrow officer. “Where’s the preliminary title report?” “Do you have loan docs yet?” “Are the buyer/seller scheduled to sign?” “Has the loan funded?” Blah blah blah. Answers to those questions, and more, are swift, accessible and fully automated.
Now, I have no idea who difficult this system is to use from the escrow officer’s perspective. To be blunt, I don’t really care ”“ that’s their problem. Where I do care is how easy the system is to use from an agents perspective. And myFirstAm has that covered. It’s a powerful, but simple and user-friendly system.
Enough about that”¦
This post wasn’t intended to be a review of myFirstAm (though it headed down that path). I am curious as to what other title companies have an all-inclusive product like this? Not just “ordering escrow” online, but also a system to monitor, track and receive process updates via text and email. Are there others? What I’d really love to see here is a discussion about what title companies can do to improve their service to agents, and agent’s clients. Do we even agree that communication is the key component for a title company? (I’m assuming here that their title insurance products and related services are worthy, with competitive rates).
I know a LOT of people in the title business. Some of you are reading this right now. I know you are, so don’t be shy! Agents, here’s an opportunity to chime in with what you’d like to see a title company offer. How can a title company help you? Real estate buyers and sellers ”“ you’re welcome to participate too!
Please don’t bash any company or individual by name, this isn’t the place for that. But an open honest discussion would be interesting to have.
Go!
Disclosure: I was not compensated by First American for beta testing, participating in the myFirstAm focus groups, or for writing this post. Well, I did get a sandwich and a pen for being on the focus group. But other than that, no compensation was requested nor delivered.
Photo Credit: Last Conversation Piece by Cliff1066 on Flickr. CC Licensed.
The Phoenix Real Estate Guy was started by Jay Thompson, and I have a little blogging problem... he liked to say...
So how was the sandwich?
Actually, I’m always impressed with the title companies. They are a wealth of information besides all the services they provide.
I don’t remember the sandwich, but the pen was pretty cool!
Title rep’s bust their tails to help us, no question about that. Well, MOST title reps do. As with any industry, there are good, mediocre and bad. Can’t say I’ve *always* been impressed. But definitely the majority of the time.
But what could they do different / better that might help you Dena?
That is a good question. With the real estate industry taking it’s ups and downs the title companies seem to be keeping up nicely. I had 2 closings this week. The title company not only came up to bat but hit it out of the park both times. I suppose the real question is how can all of us help each other in these changing times? What say the title companies? What can the agents do to help the over all process? After all we aren’t perfect, are we? 🙂
HMMM, They could remember that I am alive I guess. That would be a nice start.
Title reps in Washington seem to focus on the numbers. I see they have training and seminars scheduled all the time at the big brokerages who average less than 3 transactions per agent per year.
My phone never rings from title reps. As a matter of fact I don’t think I’ve spoken to one in the last 6 months.
Jay, following up on our Facebook conversation, check out this decision here in Mass. mandating that attorneys handle all residential real estate transactions in the state.
http://www.massrealestatelawblog.com/2011/04/25/reba-v-nreis-ruling-massachusetts-real-estate-attorneys-must-not-only-conduct-closings-but-take-substantive-participation-in-residential-transactions/
Interesting stuff Richard, thanks for the link. I’m headed out of town but will read it in detail later.
Great post. T.
Jay, you knew I’d have to reply… First, we do send couriers to pick up earnest money checks. Actually, I know a few companies that still do.
Communication is essential for a smooth transaction. Not only from the title company, but from everyone involved. Having managed a branch for over 10 years, I can’t remember how many times an addendum was signed by the buyer and seller and not forwarded to the Escrow Officer. I’m not kidding. Sales price changed, close of escrow moved, and no notification to title.
Fortunately, about three years ago, we started using SoftPro’s Dashboard transaction management system. This system sends out a detailed opening sheet with contact info for all parties. Weekly, an update on the progress of the transaction is sent to both agents and the lender. It also e-mails the appropriate agent or lender pdf’s of documents as they are received in the escrow file. These documents are then stored in a password protected folder for the agents to access at any time.
By incorporating this system, agents, title and lenders are able to make sure that everyone is kept in the loop. We found that this system helped all parties communicate more effectively.
Jay, you hit the nail on the head when you wrote “Communication is key in this business.” An Escrow Officer will not keep a client very long if there is a lack of communication.
Thanks for a post about the exciting world of title and escrow. It’s about time! 🙂
Jay,
Do you know if myFirstAm is planned to launch nationally? I am a broker of Michigan lakefront property in New Buffalo, MI and our local FirstAm branch was not aware of this. I would really like to learn more. Almost 100% of our business is acquired online and like most other real estate brokers, we are quickly moving towards a paperless practice.
Best,
Paul
Paul Zubrys
Michigan Lakefront Property since 1987
Paul – I don’t know, but I can sure find out…
Paul,
I am VP for Customer Facing Tech at First American. MyFirstAm.com just debuted in Phoenix in May and is rolling out nationwide beginning in June.I would expect it to be in Michigan by September. Thanks for asking!
Thanks for the great post… I especially like that you emphasized the importance of communication. Absolutely Key! Thanks again for the post!!
I know your focus is on title companies–but I think that these qualities are also important to consider in Real Estate agents, not just for the buyers, but for all the others we interact with
I know your focus is on title companies–but I think that these qualities are also important to consider in Real Estate agents, not just for the buyers, but for all the others we interact with on a daily or weekly basis. It’s good practice to, before asking everyone else to change, look at our own way of doing things and adjust it to better serve everyone’s needs and I think at least some others may notice and do the same in return. Perhaps I’m too optimistic and naive-but it’s always a good perspective check.
This article is so very true–the title company can definitely affect closing if communication is not present. With all of the hoops current homeowners and future homeowners have to jump through to buy a house–effective communication from title companies would go a long way.
In scanning the responses, I didn’t see many alternative. I’d live to a good *FREE* transaction management platform around here. I tried checking out the myFirstAm link above, but it only takes me to a log-in page…
This was a good article. I would say they can being a third party and calming. I find so many title agencies, which feel they must be more protective of the party who sends them the business.
Jay – Communication is key in all aspects of a real estate transaction and thankfully I work with top notch title companies who keep me updated, so I never even have to ask what the status of the file is.
My title company is great. They always take care of every deal i bring them. Communication is awesome and each transaction is always like clock-work.
Great article – Communication is the key to success!
Absolutely awesome post, Jay. Here in our back-woods, east Georgia hovel (ok, we’re the second largest city in Georgia, but it feels small), innovations in escrow are hard to come by. We use closing attorneys vs title companies here, and I’ve shared this post with a good friend of mine who is one.
Navy Chief, Navy Pride
Augusta Real Estate
Thanks for pointing this out. In whatever kind of relationship, may it be business “Communication” always comes first.