Why Every Agent Should Refer Their Clients To An Independent Title Company: Part 3

Guest contribution written by Alex Craig, a real estate agent based in Lansing, Mich.

In the first installment of my series, I noted that as Realtors® we agreed to a code of ethics and affiliated business arrangements and joint venture relationships damage the credibility and image of a Realtors®. In Part 2, I discussed the conflict of interest the presents when referring your real estate transaction to your brokerage’s “in-house” title company.

Today we’ll take inventory of your client’s closing experience.

When you’re an independent business without a joint venture relationship, there is a stronger link between your revenue and profit – and the quality of your services and products.

Better Prices. Better Service.

Think about this from a capitalistic-market perspective. I won’t dive deep into the economies of markets, but I don’t want to gloss over the theory behind this.

At the end of the day, there is only one thing that keeps a company alive. It’s cash. That cash can only come from two sources. You need to have a profit margin or someone with deep pockets, like a bank or a venture capitalist, who is willing to provide you with cash.

You can only go so long before a bank will stop lending. That means a business needs to find out how to turn a profit.

They do this by creating superior products, offering better service and operating more efficiently.

If you have to get your clients through marketing — rather than having a relationship with a broker — your product or service needs to be something a consumer wants.

An independent title company HAS to have better service and products if they want any chance at competing in the title market. So, if a title company is independent, there is a good chance that they have superior service and products. That’s because of the law of economics.

Every agent should refer their clients to an independent title agency because of the Code of Ethics they agreed to, anything but independent is anti-consumer, and independent agencies often have better service and products.

In sum, every agent should refer their clients to an independent title agency because of the Code of Ethics they agreed to, anything but independent is anti-consumer, and independent agencies often have better service and products.