Title Company Cost Comparison in Austin Texas
published on May 13, 2010
Figuring out what title company provides the lowest cost and best service in Austin Texas can be difficult at best. Each title company tends to designate their fees differently, which makes it difficult to compare the fees of one title company to another. In order to get a better cost comparison between Austin title companies, I’ve compiled title company fee information from over 25 home purchase/sale transactions. The results are varied and subject to error given the many cost variables associated with each transaction.
My disclaimer is that the group of transactions that I have compiled does not represent every title company in Austin, nor does it take into account customer service levels. Frankly, there have been very few bad experiences that I’ve had with title companies and their escrow agents. However, when I’ve had a bad experience it is usually with an escrow agent that was chosen by the real estate agent representing the other side of the real estate transaction. In these rare cases, the title agent doesn’t seem to have as much motivation to make me – the non-referring REALTOR® – or my client as happy as they want to make the referring REALTOR® and their client. Of course the really good escrow agents want to earn new business by forging good relationships with real estate agents that they have not yet done business, which is more often the case in my experience, but this is not always how things work out.
With regard to the cost comparison summary below, the purchase/sale transactions that I have compiled include closings hosted by Alamo Title, LandAmerica (Austin) Title Company, Independence Title, Prosperity Title, Gracy Title, Texas American Title, Chicago Title, North American Title, Platinum Title, and Austin Title. Some title companies were represented in more than one transaction, while other title companies were only represented by one transaction. For those title companies represented with multiple transactions, the truth of the matter is that their fees and costs varied with each transaction. As a result, it is not completely accurate to conclude that one title company is always the lowest cost over the others. None-the-less, given the below information, you may now be more equipped to discuss some average title costs with various title companies when it comes time for you to buy or sell an Austin home. Every dollar makes a difference to your bottom line, so why not be sure that you are not overcharged!
Title Insurance: The average price of title insurance for both the buyer and seller combined was .73% of the purchase price with the buyer paying an average of .2% and the seller paying an average of .53%. Alamo, Texas American, Independence, North American, Gracy, Chicago, Austin, Platinum, and Gracy Title all had at least one transaction with title insurance that cost less than the average for both the buyer and seller combined. North American, Texas American, and Independence Title had some of the lowest priced title insurance (as a % of the purchase price) on individual purchase/sale transactions.
Title Fees (not including Title Insurance): The average cost of title fees for both the buyer and seller combined was .331% of the purchase price with the buyer paying an average of .172% and the seller paying an average of .159%. Alamo, LandAmerica, Prosperity, Texas American, Independence, North American, Gracy, Chicago, and Platinum Title all had at least one transaction with title fees that cost less than the average for both the buyer and seller combined. North American, Texas American, and Independence Title had some of the lowest priced title fees (as a % of the purchase price) on individual purchase/sale transactions.
Title Insurance and Fees: The average cost of title fees and insurance combined for both the buyer and seller was 1.066% of the purchase price with the buyer paying an average of .372% and the seller paying an average of .694%. Alamo, LandAmerica, Prosperity, Texas American, Independence, North American, Gracy, Chicago, and Platinum Title all had at least one transaction with title fees and insurance that cost less than the average for both the buyer and seller combined. North American, Texas American, and Independence Title had some of the lowest priced title insurance and fees (as a % of the purchase price) on individual purchase/sale transactions.
Who Chooses the Title Company and Who Pays? In a typical real estate transaction for buying or selling a home in Austin Texas, it is customary (but negotiable) for the seller to chose the title company. As you can see in the above paragraphs, it is customary for the seller to pay for most of the buyer’s portion of the title insurance, but the title fees are close to an even split between the buyer and seller.
Disclaimer: The information in this report was provided by luxury Austin Realtor® Brian Talley of Regent Property Group who also provides information about Austin luxury homes for sale and top Austin neighborhoods. The information contained herein is subject to errors, omissions and changes without notice. Any information, statistics, analytics, recommendations or opinions provided in this report are subject to errors and/or omissions and are not in any way guaranteed as accurate or reliable by Brian Talley or by Regent Property Group LLC. Information in this report may be updated as more information is made available to the author of this article.
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