Four Steps to Take before Hiring an Escrow Company
If you’re in the business of selling real estate then you’ve no doubt experienced the rewards and challenges that the profession has to offer. Even as an experienced real estate agent chances are that you still encounter hurdles from time to time. Not the least of which is consistently closing your home sales. However, the good news is that when it comes to making sure that your closings run smoothly you are not alone.
While it is known that title and escrow companies are trusted partners in the closing process, the biggest challenge is choosing the right escrow company. Hiring the right escrow company is critical to the the real estate closing process. Once the buyer and seller have agreed upon an offer, both parties are eager to see to it that the closing goes on without a hitch. With this in mind, here are four steps you should take before hiring an escrow company.
Step 1 – Verify the Escrow Company’s Reputation
When seeking the services of an escrow company reputation matters. This is why it is critical that you investigate the reputation of the company you before doing business with them.
This research includes seeking the opinions of other Realtors, lenders and other real estate professionals. In particular, you want to pay close attention to claims pertaining to the escrow company’s professionalism, as this is usually the best indication of how they will conduct business with you.
Step 2 – Assess the Experience of the Title and Escrow Company
Just as not all real estate transactions offer the same outcome, not all escrow companies are equal. However, outside of doing business with the company the only reliable method of assessing their experience is reviewing their background. In doing so, it’s important to ascertain whether the company has handled the type of real estate transactions that you encounter, as an agent.
Fortunately, this is something that you can do even if you don’t have a formal resume for the escrow company. When it comes to judging the experience level of escrow companies here are two primary sources of information:
- Company Website – Usually the clients page or testimonials page offer the best clues as to the company’s experience level.
- Telephone – Simply pick up the phone, call the company, and begin asking them questions to see how they respond. that from the company’s website or by calling and asking questions.
Step 3 – Consider Proximity and Location
Once you have hired an escrow company, you’ll likely make frequent visits to their office, especially during the transaction process. With this in mind, it is absolutely essential that you consider the location of the company you are seeking to hire. Be sure to find a company that is within close proximity to you or that has a title and escrow agent that is local to you. Since your time is valuable, it’s best to avoid hiring escrow companies that require hours of travel.
Step 4 – Evaluate the Escrow Service’s Fees
The fees that escrow companies charge represent the added costs associated with buying and selling real estate property. There are several types of escrow fees that are generally the same for escrow services across the board, but there are also some fees that vary from one company to the next. It is therefore incumbent upon you to inquire with the service and evaluate their fees, so that you may find the company that offers the most reasonable cost structure.
Escrow companies provide both a necessary and vital service to the real estate industry. The value of the service to is critical to the management of the closing process in a real estate transaction. Also don’t forget that the steps that you take before hiring an escrow company are also foundational to your real estate practice. Without a doubt, hiring the right escrow company is among the most important decisions you will have to make; a decision that will benefit both your real estate business and your clients.