Study: Homebuyers who shop for title services save big

Written by Nikki Smith | 17 February 2011

Washington, D.C. (17 February 2011) – SHOPPING FOR TITLE SERVICES in the District of Columbia could save homebuyers up to $1,180, according to a recent study, while shopping in Maryland or Virginia could mean a savings of over $900.

"This serves as a reminder to homebuyers and their agents the importance of shopping for a title company," said Todd Ewing, president of Federal Title & Escrow Company.

The study, commissioned by Federal Title and conducted by Veris Consulting from February 1 through February 11 of this year, compared title charges among Washington Metro Area-based title companies, revealing stark differences in charges for identical real estate purchase transactions.

It included only those title companies that published their settlement fees/charges and title insurance premiums for both owner’s and lender’s coverage – also known as title charges – on their respective website.

Further, the study used identical criteria for real estate purchases in the District of Columbia, Maryland and Virginia. In the District of Columbia, the difference between the most expensive and the least expensive title services was $1,180; in Maryland, the difference was $935; and in Virginia, the difference was $934.

"About 70% of variable closing costs paid by the average D.C. Metro Area homebuyer are title-related," Ewing said. "Yet, very few homebuyers, or their agents, take the time to shop settlement companies to compare title charges."

He added that comparing title charges among D.C. Metro Area settlement companies can be a daunting task for the untrained eye, which may explain why so few consumers take the time to research title companies.

The study also examined each title company's Better Business Bureau rating to determine if there was any connection between higher title fees and ranking but found none.

Out of 25 companies, six had rankings and the only two that were accredited – Federal Title & Escrow Company and Express Title – were among the lowest and highest cost title service providers, respectively.

While the study mostly focused on how shopping for title insurance services can amount to significant savings for homebuyers, fees charged to the home seller were also examined. Seller fees ranged from $393 to $736 and averaged around $500.

Here are the results of a study of rates published online by D.C. Metro Area title companies. Study criteria was the same across the board, and results are accurate as of February 11, 2011. For the most up-to-date rates from each company, please visit the respective company's website. 

DISTRICT OF COLUMBIA

MARYLAND

Accurate as of Feb. 11, 2011. Visit each title company's website for current rates.

VIRGINIA

Accurate as of Feb. 11, 2011. Visit each title company's website for current rates.

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Comments 

 

0 # annonymous 2011-02-17 14:45

What the study does not take into account is that many title companies publish lower costs than are actually charged to get the deal. Other over estimate to give consumers a better idea skewing the results of this study. It also seems amazingly lopsided towards Federal...wonder why that is.... Reputable title companies will provide customized quotes, so consumers shouldn't rely on marketing propaganda issued by individual title companies. Can't believe everything you read!

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0 # Todd Ewing 2011-02-17 15:07

Quoting annonymous:

What the study does not take into account is that many title companies publish lower costs than are actually charged to get the deal. Other over estimate to give consumers a better idea skewing the results of this study. It also seems amazingly lopsided towards Federal...wonder why that is.... Reputable title companies will provide customized quotes, so consumers shouldn't rely on marketing propaganda issued by individual title companies. Can't believe everything you read!

I can only assume that you represent a title company that either does not publish their rates or utilizes the old "bait and switch" as you suggest. Federal Title acts strictly in a consumer-friendly way by providing an online guaranteed quote for its services - NO Bait-n-Switch with complete transparency. Facts are facts and that's the reason the study looks lopsided in favor of Federal Title.

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+1 # Nikki Smith 2011-02-17 15:00

Anonymous, the study illustrates the importance of shopping for title costs. The release is very clear that the study was commissioned by Federal Title.

I wouldn't go so far as to call it "marketing propaganda." I mean, after all this is a press release published on FTE's own blog. I imagine if a media outlet caught wind of the story, they would do their own due diligence and create a balanced news story.

Furthermore, if you're not convinced by the article, then examine the PDFs for yourself. The facts are stubborn things.

You are right about one thing: Reputable title companies are transparent and publish customized quotes online for all to see, which is why I invite you to try our Automated Quote System. It's customized and guaranteed accurate to the penny.

Lots of other title companies use our software, including some of the companies in this study. Let me know if you're interested in learning more.

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+2 # Rob Thomas 2011-11-15 13:26

I was routed to this survey from the Washington Post article on Nov. 11, 2011 and I must say, it is a very telling survey! It makes no difference to me if it shows Federal Title as the most economical(othe rwise what would be the point of advertising the survey), what I found to be interesting was how some of the more expensive companies are actually owned by their parent company broker. How can a Realtor representing the best interest of their client in a buyer broker relationship do so by referring the client to a more expensive joint venture closing company; it just doesn't "add up." This is just another example of the Golden Rule: those with the gold, make the rules! Thanks Todd for putting this together.

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