As a realtor, it is essential for your business to fully understand the benefits of title insurance. Simply having them sign a title insurance policy and briefly explaining what title insurance is works for some clients, but others need some reassurance and more in-depth information before closing on their house. If a client asked you to give a real-world example, could you break it down for them? With over 700,000 title claims to date, there are plenty of ways to illustrate and explain the real cost of not having title insurance.
When people are faced with purchasing a home, they often look to cut corners and save money. However, it is vital for them to fully understand that title insurance is not one of the areas to overlook. A client may try and opt out of purchasing title insurance, but it could wind up costing them far more than the title insurance policy costs if a problem should arise. Even if it’s unlikely for a client to face a claim, having a policy in place could literally pay off big time.
There are scenarios that could knock down the value of your client’s home and property that go beyond the paperwork. Think about this: if your client chose to opt out of title insurance, and an easement was discovered for utility work in the back of their property, their value goes down potentially by tens of thousands of dollars when they try to resell. But, if they had fully understood the value of an owner’s policy at closing, they could have recouped their losses in the sale of their property. What could have cost a client thousands of dollars in losses can be prevented for pennies a day. This is a great example to illustrate to your clients how title insurance could benefit them in the long run.
If you understand how to best educate your clients on the real costs associated with title insurance, you will give them more peace of mind and more confidence in you as an agent. Be prepared to talk about things beyond the typical clerical errors, claims, and outstanding debts on the property in order to give them an in-depth understanding of what title insurance protects them from.
Knowing how to illustrate the true cost of title insurance will make you a more confident agent, too. The ability to clarify all aspects of home ownership will not only serve your clients better, but will get you more business. On title insurance, and any real estate topic, do your homework so you can navigate any topic with expertise. If you need assistance in explaining title insurance to your client, as well as providing them with an efficient closing atmosphere and process, contact Team Title Services.