The Ohio Association of Independent Title Agents (OAITA) has released its 2 year study of real estate settlement preferences.
January 27, 2011-
The Ohio Association of Independent Title Agents (OAITA) today released findings from a two year study of Ohio’s real estate consumers concerning their settlement service preferences. Here are the highlights from the Executive Summary:
- More than three out of four real estate consumers depend upon a referral to select their title insurance agent and/or escrow agent.
- Only 23% of respondents independently selected their title insurance agent/escrow agent for their real estate transaction.
- 77% of respondents did not independently select their title insurance agent/escrow agent for their real estate transaction.
- Those real estate consumers who independently select their own title insurance agent/escrow agent primarily depend upon “word-of-mouth” or reputation to find their selection, not media advertising methods.
- 47% of those who independently selected their own title insurance agent/escrow agent used “word-of-mouth” or reputation to learn about their selection.
- 27% were return customers.
- Only 3% of those responding learned of their title insurance agent/escrow agent through the use of Internet or print advertising.
- Real estate consumers are most impacted to choose a title insurance agent by the referrals of real estate agents/brokers and mortgage companies and brokers.
- 40% of respondents cited real estate agents and brokers as the most influential in selecting a title insurance agent.
- 34% of respondents cited mortgage companies and brokers as influencing their selection of a title insurance agent.
- 5% of respondents cited banks as influencing their selection of a title insurance agent.
- Real estate consumers do not become more comfortable with the title insurance services offered by a title insurance agent when they know that the party who referred them to the title insurance agency owns a financial interest in the agency.
- Only 9% of respondents said they were more comfortable with the title insurance offered by a title insurance agency owned by the referral source that referred them there.
- 38% of respondents said they were less comfortable with the title insurance offered by a title insurance agency owned by the referral source that referred them there.
- Nearly three out of every four real estate consumers think it is important or very important for a title insurance agent to be a neutral third party in determining what matters may affect their title.
- 72% of respondents want a neutral title insurance agency handling their insurance.
- Only 6% of respondents believe that neutrality is not important.
- Real estate consumers do not prefer title insurance agents that share ownership with a real estate firms, mortgage companies, banks, or others.
- Only 6% of respondents prefer a title insurance agent that shares ownership with a referral source.
- 50% of respondents prefer a title insurance agent that does not share ownership with a referral source.
- 44% of respondents expressed no preference.
- Real estate consumers believe it is a conflict of interest for a referral source to receive a share of the profits from selling title insurance or providing escrow services.
- 57% of respondents believe that it is a conflict of interest to receive a share of profits.
- Real estate consumers believe it is a conflict of interest for a referral source such as a bank, real estate firm or mortgage company to provide compensation to their employees for referring their settlement work when they get a financial benefit from the referral.
- 58% of respondents believe it is a conflict of interest for a referral source to give compensation to their employees for referring settlement work if they receive a financial benefit from the referral.
To find out more about the OAITA and the SPS they conducted, please click here.
