THE FUTURE OF REAL ESTATE TRANSACTIONS
The past few years have brought a tremendous amount of uncertainty and instability to the real estate industry and housing market. We are all affected by the changes in regulation and technology, it seems that our clients are more confused than ever.
To discuss regulation on this message would almost be a waste of time, as our industry changes almost daily. The Dodd-Frank Wall Street Reform and Consumer Protection Act designed to protect consumers from mortgage and financial fraud and deception, may actually result in more regulation, higher costs, and less flexibility for the consumer. The three page Good Faith Estimate, revised in January 2010, is now being overhauled again, and so far we see a six page draft which is more complicated than ever before. Title companies not keeping up with the constant changes in our industry will soon be left behind or out of business.
The old, traditional title company office that once signified stability, integrity, and the serious nature of this business, are no longer being viewed as the cornerstone of the industry. Today’s clients are more mobile and tech savy with information available to them anytime at the touch of a finger. Title companies can now outsource file processing to companies located across the globe, have employees work from home or remote locations, use internet and skype phone systems, and video conference clients instead of driving to meetings.
Those in our industry who may not be tech savy or strong in business management, tend to argue that the client should stay with local companies who focus on “dotting the i’s and crossing the t’s”, old-fashioned customer service, and being able to do business on a person-to-person basis. I believe it’s a matter of using the best parts of each argument “ having the technology to process files more efficiently and using the services of Notaries to sign closing documents, while at the same time, being there for clients when they need face time. I think we should be combining these methods to communicate effectively with every client, while taking advantage of everything technology has to offer. Why limit yourself to a few closing locations when you can go to the client instead?
Mobile closings have been a hot source of contention lately, as the old guard wants the client to set appointments, many times driving out of their way on a schedule that is inconvenient for the client. We don’t believe this should be the case. Many of our clients are appreciative when we forward a closing package to them by email or when we offer video closing services while they sit before a local Notary for execution of closing documents. What’s next? Personally, I love the vision of having clients sit in the convenience of their own living rooms, communicating with us through big screen tv, while clicking the “accept” button on their remote controls!