Title company shopping

[gigi1976]

Hey all, we are buying a new home and just thought I should share with you all that it really pays off to shop around. Our agent picked a title company for us to close at, we are new to the area and don't know anyone or anything! I contacted them to get an estimate on their fees and when I saw a $35 "email delivery fee", my "you're being hosed" warning sounded so I called two other title companies for estimates and by doing this we can save almost $400 off of our title company fees. We have bought 3 other homes in the past and just went with whoever was suggested by the agent, NEVER again. When we just sold our last house the Remax franchise owner (our listing company) was also the president of the title company they suggested (conflict of interest anyone?) we didn't find out until we were there closing and they gave us a notice to sign saying we were aware, we should have done our homework! Oh well, lesson learned, no looking back! Just thought I would put that out there so hopefully someone will take heed and shop around too!

 

[mydisneyobsession]

This wouldn't work in Texas, as Title company rates are promulgated. Everyone here by law charges the same thing.

I'm glad you were able to shop around and get a good deal, though!

 

[dis-happy]

Similar experience here. There is one closing agency that EVERY real estate person recommends. We used them once and they were expensive (more expensive than my top notch DC title attorney when we lived there). Honestly, I always wondered if there were a "financial incentive" for the recs.

After that I learned to shop around. Found somone else who is great, used her 3 times and have recommended her many others. Buyers should know they get to pick the the closing agency.

I know you mentioned "title company"---maybe you are referring to title insurance and not the closing agent?? Either way, it pays to shop around!

 

[gigi1976]

Ah...living in Texas would be nice, I hate shopping around, it would be nice to know that everyone pays the same thing.

Yes we had heard to shop around for the insurance part, but all 3 actually ended up with the same quote for the insurance part, it was all the processing and junk fees that made the $400 difference.

 

[mydisneyobsession]

My husband worked in the Title industry in another state before coming to Texas. There is a lot of "wining and dining" and sponsoring of real estate company events that go on, and lots of reps are able to get the endorsement of management in an office to agree to only allow that title company in to the office. Quite often the company with the higher rates has a higher "marketing budget" so those are the companies that get pushed to the consumer.

There are laws everywhere that try to limit that kind of relationship, but they're not enforced equally in all markets. Here in Texas, reps have to be really careful not to break the laws, because they are aggressively enforced, and the companies don't get to compete based on rates. But our rates are higher, so it's not a huge advantage to the consumer anyway.