Launching a title operation has become a hot topic these days—especially as more real estate businesses look to deliver end-to-end transaction experiences. Starting a title operation big or small can be challenging to say the least, and those who haven’t been in title & escrow often underestimate the complexities of this pivotal function and the expertise of the title & escrow community that’s developed at the local level.
Before heading down the path of starting a title operation it’s incredibly important to understand your goals for doing so. For example, are you starting title operations in order to create an additional line of revenue? Or are you considering starting title operations so that you can compete with other players in your field who are building transaction-related experiences in-house?
Depending on your goals, you may even find that attaching title & escrow services to your business offering doesn’t require starting a title operation from the ground-up, but instead involves working with existing title companies. By identifying your reasons for starting title operations up front, you can develop an appropriate entry strategy and ensure your resources are used efficiently and effectively to meet key business objectives.
The first true step: define your reason for starting a title operation
The three most common reasons I hear among organizations looking to launch title operations are:
- Service-related. By building a title or escrow operation from the ground up, organizations can design the customer’s closing experience.
- Revenue-related. By attaching title & escrow services to the business, organizations create an additional line of revenue. For many venture-backed real estate businesses such as iBuyers, attaching title is the path to profitability.
- Competition-related. Across the real estate industry, many PropTech businesses are creating end-to-end transaction experiences by attaching title & escrow to their core offering. Many businesses are now seeking to add title & escrow services in order to keep pace with competitors. Some are considering building title operations while others are finding ways to remove any operational friction from working with existing local title companies.
By identifying the reason for adding title & escrow services, businesses can understand which launch strategy will work best to achieve their goals. For example, if an organization is focused on maximizing local knowledge to achieve a service-related goal, then they might consider working with existing title companies through a joint venture (JV). Conversely, if maximizing a new line of revenue or creating a very specific customer experience is the principal reason for adding title operations, then starting a title operation from the ground up may be a more suitable strategy.
The main takeaway here is that title & escrow is not a zero-sum proposition. There are many ways to launch title operations, creating the right team and finding the best entry method based on your underlying business goals are essential.
Build on a solid foundation with the right technology partner
Today, flexible technology platforms like Qualia are enabling businesses to add title & escrow services using a variety of strategies. Whether it’s launching a title operation from the ground up or working with existing title companies, the right technology and partners are paramount.
With the Qualia Scale program, businesses can leverage Qualia’s technology platform, team of engineers, and national footprint of existing Qualia users to build white-labeled title & escrow operations at scale. Our team of experts can help you build your own title operations or to integrate with independent title agencies across the country.
To learn more about how you can add title & escrow to your offering, click below to schedule a time to speak with a member of our Professional Services team.