We do a multitude of things to keep our clients expenses low, as we tire of seeing fees added on their closing statements that do not need to be. One thing we do when we are working with our sellers, or buyers, when they are responsible for an owners title policy is put the title and closing work out for bid. We did just that yesterday and were so happy to wake up to this e-mail today. This is why we work so hard to save our clients money. We typically hope to save our clients a couple hundred dollars through this bidding process. Here is the e-mail we sent out inviting the vendor for a proposal;
We just went bilateral with this property and have attached a copy of the contract. It is a VA loan and we are asking three title companies for a bid to handle the title work and closing duties. This is a new home.
Please let me know what your charges, including search fees, that will be charged and we look forward to potentially working with you on this transaction.
Here is the response we received;
Good morning Tom......
My name is Pamela and I am a closer at _____ Title. Your email was forwarded to me by Rick. I have attached a prelim HUD-1 per your request.
I based the purchase price on the contract you attached at $380,000.00. I used a 6% commission base with a 50/50 split. I do not know if you charge a transaction fee so I did not place one on the prelim HUD-1. If there is anything you would like me to add please do not hesitate to respond with any changes you may need.
In regards to our settlement fee I charged $0.00 to your sellers. It is my goal to earn your business not only with this contract but with any future contracts you may have. Per your email you are in the process of obtaining a quotes from additional title companies. If you receive a quote that is lower then the one I am providing please do not let that deter you from choosing _____ Title. I will match any quote you are given. I would like to thank you for your time and I look forward to hearing from you soon. Make it a great day!
So, in this case we did not save our clients’ a couple hundred dollars. We saved them much more and we have a new vendor who will be bidding future closings for us if they perform admirably on this one. And the savings to our clients do not stop there as on this transaction we charged them far less than 6% for commissions and NEVER charge them a transaction fee.
Watching out for our clients is what we do. Changing how real estate is done is what we hope to do. If we can ever watch out for your best interests for anything real estate throughout Palm Beach or Martin County please feel free to contact us at 561.308.0175 or firstname.lastname@example.org
Fins up for saving our clients money.....