**PRAYERS FOR FLORIDA**
Hello.
It is Kara here, your favorite disgruntled yet advocating AND SWEET (I am nice in person, I swear!) vendor manager/ground abstractor from Somewhere, USA. #NotOhio #NotWestVirginia.
I have done a few of these before, but in view of some recent changes and trends I have been observing, and after having talks with some other boot-strap Abstractors, here I am yet again.
First and foremost, a shout out to my sisters and brothers in the Mortgage Industry, especially those who have been fired, laid off, often en masse. I stand with you and any Courthouse Searcher worth their salt, would do the same.
Down to business:
It is no secret (ok, maybe it is a dirty one) that most of the major players in the Title Search industry outsource offshore to foreign countries (not naming names…), even banks! I wish I was kidding with this one.
Before the interest hikes, companies in these countries are charging literally MERE DOLLARS, if not CENTS PER UNIT in exchange for THOUSANDS of Title Search orders per month. I am not making this up: and that is just the 3rd parties.
Other players, such as major banks and Title Insurers, have actual "centers" in these countries with in-house staff paid at a fraction of what it would cost for an American staff member. Ah yes, the dynamic of the cost of labor. Thank you inflation…. - NOT.
That being said, it is you (the actual abstractors that are boots on the ground) that are on the front lines, not them. I cannot SAVE Abstractor businesses here in America, I cannot save those in danger of being laid off (like I was) or others, nor can I save an industry combatting inflation, outsourcing, and even recently, AI. Instead, it is up to you. It starts there but it will involve all of us working together, supporting one another, and putting the tools in place to PUSH BACK. We can win long term, but it takes unification.
Now for the fun part. Disclaimer: I will not put actual fixed dollar amounts because I do not want to get caught up in price fixing BUT…
-If all of your clients are sending you are document retrievals, I advise you should be charging close to triple digits or per instrument if you want to keep your head above water. Whether you charge it flat or charge for copies, that is between you and your clients. If you DO charge for copies, keep it at courthouse rate. Do not nickel and dime your clients with marked up copy costs: the client won't like it and often the courts do not like that either. You can also, in exchange for batch orders, lower the base price per unit. That is what many offshore companies try and do…
-Current owners. Same as above, albeit slightly more up to 30-years, 40-years, 60-years, etc., depending on your state statute. If you are in a license-only state, you should be charging even more: that is what we call a "cornered market".
-Two owners. I would say +$15-25 more than what you charge for a current owner. Two owners should stop at the mark for Foreclosure Search or "Full"/Vested.
-Full searches or more: I should not even have to mention this, but these suckers should be at a hefty price: it is your gas, your time, your expertise, your resources, charge for it! Half up front/half at completion, etc.
One colleague said this: they charge the quoted "full search" price, but then after two days they charge by the hour with a four-hour minimum!
-Doing Commercial Searches at ground? If I were you, I would take what I said above, and double it.
Some other tips:
-Never be afraid to do a "Due Diligence" check on potential clients: we work in an industry saturated with no-payers and people who use fake names…. We are here for eachother, remember?
-Speaking of fake names, you can often find out who a company's owners are and where they are located by a simple Google check (as mentioned by others on this site!) or through Zoom.com. DO NOT DO BUSINESS WITH THOSE WHO USE FAKE NAMES. IF YOU DO, YOU ARE EXPOSING YOURSELF TO EXTREMELY HIGH-RISK BUSINESS BEHAVIOR. IF IT BITES YOU, WE WARNED YOU. DO NOT COMPLAIN.
-TO THOSE WHO USE FAKE NAMES FOR ACQUIRING CLIENTS OR VENDORS: Please stop doing that. We are all Legal Research Professionals. We can all do some quick googling and see who you really are. From a business perspective, if you are not transparent about who you are/where you are from, that means you have something to hide. STOP…PLEASE…WE BEG YOU…FOR YOUR SAKE.
When I started as Vendor Manager at my old company my manager had a relationship with a "fake name company" named "Tom Hanks" (name has been changed). Long story short, I fired that company from our vendor program. Boss was pissed, but I was able to justify my actions.
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And that is all. I have given you, once again, some many helpful tips and insight.
It is your business, your industry. Protect it.
XOXO
*K*
Also on a personal note: Ginny and Georgia on Netflix is a really good show. ENJOY!
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