Who chooses the title company in Texas?

Who chooses the title company?

Here in San Antonio (and Texas in general), we use title companies to close our transactions when selling and purchasing homes. The purpose of the title company is two-fold; firstly, to manage all the incoming funds and make sure all the appropriate parties receive the correct funds (and there’s a lot of parties – lenders, sellers, agents, insurance companies, surveyors, the tax man…the list can be quite overwhelming), secondly, the title company issues title insurance. Title insurance insures the property is being passed from one party to another without any encumberance. By issuing title insurance on the property, the title company is ensuring that if someone indeed does have a claim to the ownership of the property, they will cover the owners’ loss.

Buyers and sellers can negotiate who will pay for title insurance and also who will be chosen as the title company. There are actually two components to title insurance; the owners’ policy and the lender policy (each one protecting that party from possible claims of ownership of the home). If the seller pays for both portions of title insurance, they may pick the title company without fear of violating RESPA (the Real Estate Settlement and Procedures Act). However, if the seller is not willing to pay for title insurance, the buyer may negotiate to choose a title company and pay for the title policy.

There have been courts that have argued that when the policy is split into its two components (lender and owner) and the seller pays for the owner policy and the buyer pays for the lender policy, that the seller may still choose the title company. However, RESPA does not officially cover this position and the waters remain murky. It is best if the seller avoids any conflicts and a) chooses and pays for the title policy (both owner and lender sides) or b) let’s the buyer choose the title company and pay for their title policy. Often in the MLS a title company is written in as a preferred title company, but although the seller’s and their agent might prefer it, as a buyer, you do not have to use their title company if you are paying for your title insurance (no matter what some agents might try and tell you).

In Texas, the cost of title insurance is regulated, so all title companies charge the same fees for the policy. Because of this, it really comes down to service and ability to perform the required tasks with efficiency and flexibility. Most agents work with several different title companies and closers and know who can best fit your personal situation and transaction, so ask your agent when buying or selling your next home who they know can get the job done and make your decision with that in mind.

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How to be a good home buyer or seller.

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Buying or selling real estate can be a complex process, and even the best deals can have their moments of frustration for all parties. The entire process itself is stressful, and that can often bring out the worst (and sometimes the best) in people.

We as agents spend a lot of time promoting ourselves and the level of customer service that we provide our clients. Anyone who is a true professional has a deeper understanding of what it means to provide solid information, advice, guidance and support to clients, and this should speak for itself as we assist you with your transaction.

But since agents and loan officers and title companies would not have jobs without customers, we often downplay the fact that we need help and support from our clients as well. When buying or selling a home, rarely do we stop to think what it means to be a good customer. Here are some great tips that may help you feel better about the large undertaking, and the professionals that you will be working with along the way:

Ask questions. If you don’t understand a part of the contract, or you need clarification about a term, or even to know what comes next in the process, ask. Not only will you have a better grasp of the situation, but you will feel better at the end of the day. Real estate contracts can be complex, so don’t just skim along and hope it works out. Be involved in the process and understand what is going on with your transaction.

Listen. REALTORS® are duty bound to protect your interests above all others. Remember why you hired your agent in the first place and consider their advice carefully. It may not always be what you want to hear, but sometimes it may still be good advice. Experience counts for a lot. Most people have only bought or sold a handful of properties in their lifetime. Agents handle a handful per month. They are in a unique position to know the trends, values, and common features in local markets. And they have established relationships with other industry professionals to build upon this knowledge base.

Don’t lie. This one may seem self explanatory, but sometimes we as customers are embarrassed or ashamed of some of our actions. We think that if we don’t bring it up, no one will find out. But even the smallest omissions can turn out to be huge problems down the road. It’s better to be upfront about any issues so that your agent can help come up with solutions before they fester into huge deal-breaking disasters.

Be clear about your expectations and wishes. Take time to think about what your wants and needs are in a transaction. If you are buying, take a few moments to figure out what features are most important to you, and which you have a bit of flexibility on. If you are selling, consider things such as repairs, timeline, and price. Convey these to your agent. Time is a valuable commodity, and no one wants to waste their time or yours. Spending six weeks looking at two story houses only to discover that your mother-in-law will be living with you (and she requires a downstairs bedroom thanks to her recent hip replacement) is going to lengthen the time it takes you to find that home because of the poorly focused plan you started with.

Be fair. Real estate does not have to be a win-lose game. Yes, sellers always want more money for their properties, and buyers are looking for a better deal. But at the end of the day, everyone in the transaction is working towards the same goal of a closing. There is give and take on all sides.

Seek advice of experts. Seek out business relationships with people who have the experience to back up what they say. If your cousin’s sister’s brother kind-of knows something about electrical systems, he may not be the ideal person to conduct an overhaul of your home’s wiring before putting it on the market.

Don’t trump the expert. Spend time researching the people you work with so that you feel comfortable with him or her. Don’t’ be afraid to ask for references from past clients, or to verify sales figures. But once you’ve spent time doing this, trust that the professional you have selected is going to do their job. Calling every four hours about a new real estate article you saw online, demanding triplicate copies of every ad, e-mail, prospect, flyer, MLS sheet, or other document related to your house, or questioning why buying a home in San Antonio in 2011 is so different than “the way things were done” on a home purchase in 1975 in Pennsylvania may not be ways to show this confidence.

Communicate your frustrations. If the person you are working with is not performing as expected, let them know. There’s a calm, polite way to do this, and most of the time, people will respond positively to the feedback. Letting the problem persist only stresses your further and may end up doing severe damage in the end.

Follow through. Just as you are looking to work with people who do what they promise, make sure you are holding up your end of the deal. Your agent or your loan officer cannot do their job without you. So turn in those loan documents, get back to your agent with answers to important questions, and complete the required repairs when you say you will.

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Sellers

House Keys

Why list your home with us?

When you decide to put your house up for sale, it is likely not a decision you have taken lightly. Whether you are moving because of a job, for different schools, or because of a growing family, it’s important to have an agent on your side who will work to make the process as smooth as possible, and get your home sold at a price, and within a time frame that you can be happy with.

Before listing your home, you may want to consider some of the following:

  • Should I complete any projects or repairs on the property?
  • What can I do to help declutter my home and make it appeal to the most buyers?
  • How quickly do I need to move?
  • What price do I need to obtain in order to be happy or break even? What if the market does not support that?
  • What is going on in my neighborhood lately?
  • Which agent would be right for me?

When you are ready to put your home on the market, here are some things to consider when picking the right agent for you:

  • Market Knowledge: There have been many changes to the real estate market in the past few years. It is important to have an agent who is up-to-date on the current conditions, changes, and trends.
  • Confidence: You want an agent who can talk openly and knowledgeably about your home, neighborhood, market, or real estate issues. You will be looking to them for advice and guidance, and so having an agent you can trust is critical.
  • Integrity: In many ways, your agent is a reflection of you. Often times the agent is the first, if not only, person that potential buyers or agents encounter when discussing your house, and many presume that the agent is acting at your instruction. An agent who promotes the tenants of honesty and fairness, as found in the Code of Ethics, is a valuable asset.
  • Marketing Strategy: The ultimate goal is to get your property sold. You want an agent who has a plan to have your property promoted often and to the right buyers. Agents at Kimberly Howell Properties have access to the San Antonio Multiple Listings Service (which reaches over 5000 REALTORs® and their clients), as well as the New Braunfels MLS. Additionally, all listings from our company are featured on over 25 different websites. This is in addition to the customized marketing each of our agents designs.
  • Organization: One part of your agent’s job is to help the transaction flow smoothly. They will maintain records, help you keep notes, follow up on showings and offers, and keep the process moving along.
  • Negotiating Skills: When offers come in on your house, you will look to your agent to advise, guide, and fight for your interests. You want an agent who can stand their ground firmly, yet knowledgeably and professionally.

At Kimberly Howell Properties, we are dedicated to providing our agents access to market information, technology resources, and training about all aspects of the business. We give our agents the tools that allow them to work for you.

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San Antonio real estate and property information provided by Kimberly Howell Properties. Kimberly Howell Properties does not assume any liability or responsibility for the operation or content of any of the linked resources, nor for any of the interpretations, comments, graphics, or opinions contained therein. All information deemed reliable, but not guaranteed. KJH Properties, Inc. is a licensed real estate brokerage in the State of Texas, Equal Opportunity Employer, and supporter of the Fair Housing Act.