Being one of the largest and most lucrative, the real estate industry involves a variety of players. One of the key players undoubtedly is the title company. They carry out several duties such as verifying the title, researching property issues, coordinating the closing, and issuing the title policy.
As a title company grows and becomes more successful, decisions have to be made to hire more internal staff to manage increasing orders or outsource time consuming tasks such as lien search to other companies. With more frequency, title companies are choosing outsourcing to increase productivity and efficiency.
When performing unrecorded lien searches, one of the primary goals is to uncover open municipal issues that might be on a property before selling. However, internal workload can be substantially increased by several factors, which include the type and size of the deal, the work required, and time constraints. This is where outsourcing to a lien search company comes in, to help you take the workload off employees and deliver the best results.
This post will highlight 7 reasons why title companies should outsource Municipal lien searches.
1. Cost Reduction
As orders pour in, it becomes necessary to take a detailed look at costs and decide whether employing new staff would be more beneficial to the company than outsourcing. From a financial perspective, it is clear that outsourcing is a viable option. It would save costs that would have gone into hiring, recruiting, and training of new staff.
Less fixed overhead allows you to be more flexible in all other areas of your budget that can grow your business vs. get more work accomplished. Outside specialists that are paid as closing costs help to ensure profit margins stay in the green.
2. Regular Fluctuation of Real Estate Market
In the marketing world, there are striking similarities that numerous industries share. One of these is seasonality, which applies even to the real estate market. When files seem to overwhelm a title company, it may be tempting to go on a hiring spree and get a truckload of employees, but what happens when the number of orders declines?
To avoid this vicious cycle of hiring and letting employees go, working with a third party lien search company can be beneficial since it will enable you to employ external workers at a fixed rate per search not paid by your firm.
3. Boost Effectiveness
As mentioned earlier, title companies handle a lot of projects. To boost effectiveness, they outsource lien searches to professional lien search companies. This makes work more efficient and ensures all relevant providers are searched, and non-recorded property issues are uncovered. Additionally, the lien search will be completed faster allowing more time to clear issues that arise.
When it comes to the title search, mistakes are unforgiven. If you want to provide your client with the best service, you should outsource the lien search so that your employees could have more time to focus on their core responsibilities.
Outsourcing creates room for title companies to focus on other areas involved in house purchase such as clearing title, checking easements, preparing the closing package, and coordinating closings. The lien search companies ensure that all the necessary documents regarding utilities, unrecorded code violations, and expired permits. This makes for streamlines the process, saves time, and makes sure deadlines are met.
When you outsource the lien search to a qualified lien search firm, they will work along with your employees to discover unrecorded municipal liens that will protect your client from any hidden issues that the title search won’t reveal.
5. Company Expansion
Title companies that have built a track record of success in real estate, employ great sales strategies, and intend on expansion, may encounter difficulties. Often expansion comes when orders surpass current staff capacity, or adding additional locations to grow exposure. Choosing a company that already understands where to locate the pertinent data will provide an invaluable jump start to growing with a positive image in these new markets.
Professionals in this industry unanimously agree that there are unique intricacies in every property. Know-how will ultimately result in better title clearance and few or no claims to the title.
6. Risk Mitigation
Risk assessment and analysis is one of the most important factors in any project. Outsourcing a search allows the risk to be shifted to the party hired and eliminates uncovered balances falling back on the title company that missed them. Most reputable lien search companies carry $1,000,000 E & O policies to help further protect you against claims that can damage your reputation.
7. Fast Turnaround Time
The lien search companies specialize in these searches allowing them to provide the results ahead of time and within budget.
When it comes to hiring a lien search company, it is crucial to make sure they use the most updated delivery methods available. Prepay accounts, and courier delivery ensure days deadlines aren’t missed. Remember, it’s not just about outsourcing, but actually outsourcing to a reputable and experienced company that will save you time and money.
At REAL RES, beyond all of the above, we also offer a 100% customer satisfaction guarantee, friendly service, and an incredible cancellation policy.
Contact us now for more details!