The Beginning of the New Normal for Title Agencies

The time of fragmentation among all the players with the final process, including including the lender, title agents the buyer's realtor, and the seller is about to come at an end. It is now new age of interconnection which means that all of the process is being consolidated into a single system. Technology and consumers have pushed this process forward, which makes it necessary for other companies to get involved. In the absence of this, they could be in danger of being a victim of loss in business.

In the past the technology of a single platform was available only to major business names. Since technological advancements have made the software more accessible to develop and distribute, smaller independent organizations are now able to use it. In turn should other companies wish to prosper in the coming times, they'll have to incorporate the program as well. It's "the new normal" - the standard used by title agencies to carry out digital transactions between distinct parties.

To give an example, Zillow has eliminated the requirement for prospective buyers to work with an agent in real estate to locate a house. People looking to buy a house can start their search by themselves and that's a major reason why the market is shifting toward allowing the whole process to be carried out through the same platform. If the title companies fail to take advantage of this technology and technology, they could be liable to have their clients and partners to change their preferences for another title agency consultant that provides an integrated experience.

Three entities are that title companies could be under the pressure.

Market Consolidation:

Large title agency licensing relied on transactions originating from a central location like Bank of America. Today, the national title companies are moving to where independent agencies are and separating their business from those who have yet to implement new and efficient technology. A good example could be a small corner store pharmacy closing down of business following the opening of a CVS opened just across the street.

Lead Consolidation:

With the internet in our pockets, information about the real estate market is easier to find than ever. Instead of word-of-mouth sources, prospective buyers can now search for and decide on homes by themselves. This boosts competition and the possibility of obtaining leads.

Margin Compression:

The big name companies have signed RealEC, Ellie Mae, and other mortgage software tools to ensure that the charges that title companies charge are lower.

The current reality is that smaller companies that are lagging in the integration of single platforms are gradually being taken away. The years of price reductions following the meltdown of mortgages have caused this. This year is at the point of tipping.