In the small town of Coos Bay Oregon where I first began practicing Real Estate the Choices for Lending and Title services was limited. Although there were aproximately 21 Real Estate Brokerages, most were one person offices. Principally there were the Top 3-5 agencies and then all of the rest. Long before I began practicing Real Estate, the Title companies had pretty much devided up the business. Making a choice as to Title and Escrow services was basically pre-ordained.
Lending on the other hand was minimal. In fact of the very few lenders in the community most were not interested in doing Home loans at all. I remember my conversation with one of the Local Banks ( there were no Mortgage Bankers in Coos Bay at that time ) that had been reccomended to me by another agent in my office. I asked them why their home loan requirements were so tight, weren't they interested in doing home loans. The Bank President himself answered the question with a question.
" If you only had 1 million dollars to lend, which choice would you make. The group of consumers who want to borrow your money for televisions and cars for 3 to 5 years at a 10 % to 22% interest rate or the consumers who want to borrow you money for homes for 30 years at a 6% to 8 % interest rate?
The Following year I moved to Portland Oregon where we had a population base of around 1 million people. Title Companies seemed to be on every street corner. There were so many Lenders I wondered how all of them could possibly keep busy.
Within 48 hrs of my arrival I had 12 offers for Lunch. Eight from Title companies and four from lenders all wanting my future business. I didn't want to slight anyone so I said no to all. Honestly they were all suprised and did not no really how to react.
For some unknown reason, I suspect that they thought I was playing Hard to Get. They began to drown me in something they called marketing materials. They looked like notepads and pens with their names on it to me. After a week of this silliness I decided to give my mentor Mike Ferry a jingle and ask him how I should handle the whole situation.
Mikes answer as usual was brilliant. Sit down and write a detailed list of all of the things that you expect your Title and Escrow company to provide for you. (_Title's_List_) Then make another one for your Lender. (_Lender's_List_) The List will enable you to discern if they are able to accomplish all of the things that you deem necessary for your clients and your business. Next start asking questions of your associates, other realtors, what do they think of the company's that are prospecting you.
Remember not put to much stock in the other realtors answers as they may be biased for a variety of reasons that you may not be able to duplicate. Once you have your group of candidates, ask to meet with them separately. Always meet with them personaly for these are the folks that you will be doing business with and will be a reflection of who you are. Always bypass the Companies representative or salesperson as they will allways over sell the ability of there fellow employees.
You should now have whittled it down to a few good prospects or Title And Escrow officers and Lenders and their loan officers.
The Final step is to give them a shot. The proof is in the pudding. It may take a few times before you can defintively say that you have made the right choice. Note : An important step in the choosing a Title and Escrow person is for you to attend the first few closings at least. By watching them work you will be able to have confidence in their ability to perform if you are unable to attend a closing.
Herb Hamilton is a Real Estate Broker affiliated with RE/MAX Preferred Inc. Realtors working in Portland Oregon
" A Real Estate Transaction with Herb is one YOU will Profit from "
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