How to select the best real estate title and escrow company

by Melissa Burroughs
(Warrenton, VA)

If you are getting ready to purchase real estate, or expect to go to closing on a real estate transaction, be careful when selecting the title and escrow company for your real estate closing.

It often happens that consumers rely on the referral of their realtor and/or lender for a closing company.

This could be a costly mistake. What you may not know is: Many real estate companies and/or lenders profit by setting up affiliated business agreements with title and escrow companies. These affiliated agreements control the flow of business and keep it all within a single corporate network.

Unwitting consumers often don't realize that the fees charged by the affiliated title and escrow company can be dramatically higher than what they would pay if they shopped around.

It pays to compare at least three different title and escrow companies to make sure that you are in fact getting the best deal. The majority of title companies will meet or beat competitors' prices in order to secure your business.

In shopping for a closing company, you will want to inquire as to the company's years in business and experience of the staff to ensure that your transaction is in good hands.

If you do not have the time to dedicate to shopping a closing company, I highly recommend consulting with friends and even neighbors who have had a recent closing experience. What better way to find out about a particular closing company than from the personal experience of someone that you know and trust!

A real estate closing is the biggest financial trasaction that you will make. Make sure that you research all aspects of the process to guarantee a smooth transaction and avoid paying more than necessary.