The real estate industry made significant movement this year toward improved communications between all the professionals and consumers that are required for a property sale. At the core of this is a concerted effort by the title industry to apply technology to modernize and upgrade the closing process.
- Title companies of all sizes can afford today's technology
- Digital transactions that connect parties have become a widely acceptable norm
- Slow adoption of new technology create significant risk for losing business
In the not so distant past, technology powerful enough to drive the real estate industry’s impending step-change evolution would have only been available to the largest enterprises and institutions. Today, however, thanks to advances in how technology can be built and distributed, it is available to businesses of all sizes.
Bill Foley, Chairman of the Board at Fidelity National Financial, highlighted the value of consolidating transactions to a single technology platform while discussing strategies “to develop an end-to-end program from the time the Realtor gets the listing to the time when the transaction closes and we interface with the lenders.”
Real estate professionals operating in disconnected silos simply cannot afford to continue with business as usual – the risk of losing a substantial amount of business is just too big. Digital transactions that provide connections between transaction parties have slowly become not only a normal way of doing business, but the requirement.
Title companies would see a deteriorating bottom line driven by these following pressures:
Market consolidation – Margins will compress as larger national title operations that previously relied on the refi business pivot towards consolidating the purchase market.
Lead consolidation – As information about transactions become more accessible and consumers drive more of the purchasing decisions, there will be an increasing consolidation of the source of leads that slip away from being exclusive word of mouth referrals.
Margin compression – The fees currently charged by RealEC, Ellie Mae, and many eMortgage software products are good examples of the type of margin compression to expect.
Title companies must explore taking the lead on implementing technology that drives the real estate industry forward. If the do, the coming year will be one that marks a time they expanded their presence while taking the customer experience to new heights.
View the original article at Housing Wire