Why should I use the listing agent's title company?
Sep 09, 2022
We always look to "What's in my client's best interest?" when making decisions and recommendations. When you're representing a buyer, there is very little upside to writing in your preferred title company over the listing agent's. Right or wrong, it's very standard in our market for the seller to choose the title company (which means the listing agent chooses the title company.) This means you will introduce unnecessary friction if you write in your preferred title company. Here are a few facts/truths:
- Title premiums are state regulated and don't vary from company to company. Fees do vary, but by small amounts.
- Most title companies provide excellent service. We have contacts at every well known title company (Capital, TNT, Independence, etc) and these contacts will absolutely help you if you happen to work with a closer who doesn't provide excellent service. Your client is highly likely to have a great experience with any well known title company.
- Anything you choose to negotiate in the contract will weaken your negotiating position with another term.
- Every agent hopes to have a great, reasonable agent on the other end of the transaction.
Over 1000+ transactions, we've found that most agents who are pushy about their title company when on the buy side are difficult to deal with in other areas. This is another downside to writing in your title company; You could broadcast that you might be difficult in other areas.
The bottom line is that we've found that there is very little upside to writing in your preferred title company as a buyer's agent and there is plenty of downside.
Are there exceptions to this? Absolutely! If you think you're in an edge case scenario, let's talk!
Eric to record a video
