realonomics

The title industry has long opted to sell directly to intermediate influencers while ignoring end users. The industry incorrectly assumes it’s product to be information. The misconception was spawned by an inexplicable affinity to remain physically and emotionally distant from consumers. The title industry, in fact, sells only credibility and the absence of consumer-centric title models proves that this nuance is not generally perceived.

The arcane concept known as reverse competition has created tiers of imbalances within markets as well as structural inadequacies within the industry itself. The greatest of these issues: The title industry and the consumer know very little about the other. In markets with expectations of honest and continuous business chatter, the self imposed seclusion of the title industry has fueled a public suspicion of skeletons in the closet. The paradox: a retail industry of the store front variety that has never met its customer.

Brick-n-Mortar Mentality

The contemporary model encouraging title company ownership by real estate companies will soon face economic challenges. Income streams produced by internally processed title orders will lose velocity when confronted with heightened scrutiny by consumers and governmental agencies.

The lucrative profits currently used to finance a “brick and mortar mentality” among corporate executives are also needed to lubricate a false sense of security and high percentage commission splits for real estate agents. As the model’s machinations de-accelerate, effective and appropriate business models will elude the title industry’s grasp due to the anonymity of the consumer.

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