Title company fees matter
Most reputable title companies now maintain robust websites with a disclosure of their title charges/fees, making it simple for prospective homebuyers to compare title company fees and select their title company.
According to a recent analysis, less than 10 percent of homebuyers and refinancing homeowners chose to select their own title company – despite the fact that it was their legal right to choose a title company. Instead, the overwhelming majority of those homebuyers and refinancing homeowners deferred to their real estate agent or mortgage lender to choose the title company on their behalf.
Because most homebuyers do not realize the potential cost-savings associated with selecting their own title company. They do not realize that a simple online search for comparing costs among local title companies could save a thousand dollars or more.
In fact, many real estate agents and mortgage lenders are not aware of this simple fact. It is incorrectly assumed that all title company charges are equal.
My “Best Friends” advice is as follows:
Choose a title company yourself – don’t leave the task to others.
Choose a title company that clearly discloses their title fees and title insurance rates on their website.
Choose a title company that is independent – not a title company affiliated and sharing profits with your real estate agent’s brokerage or your mortgage lender’s company.
Choose a title company that has been in business for at least 10 years.
Choose a title company that conducts closings by licensed real estate attorneys – not notaries or settlement agents.
Choose a title company with positive user reviews. Check out Yelp, ActiveRain.com or Google for starters.
Follow my “Best Friends” advice and you will end up at the closing table of a reputable title company AND pay less.