Negotiating fees with title company?

Question

I am at the point where I have a enough volume of flips/rental properties that I negotiate everything from contract work to property management fees. Most people are good with reduced rates if I give them volume.

With that said - can you negotiate fees with the title company? We run all our deals through the same title company so they are in involved in 20+ deals a year between buying/selling/refinancing. I am not sure how many fees are standard and how many of them are bogus.

Tom Gimer · Answer

Yes, you can negotiate fees with your title company based upon volume.

I will add that most who approach us to negotiate preset fees over-promise on what they are bringing to the table. Think about whether your deals are clean and easy or whether your title agent is adding value to your business by going above and beyond to get deals closed. If your deals are difficult and yet you are asking for discounts, the relationship will sour. My $0.02.

Kevin Schaefer · Answer

We've been running title fairly consistently lately and the company we were using gave us a break. Never hurts to ask !!

Adam Craig · Answer

Thanks Tom -

I am using this title company because my hard money lender wants to use the same one to make closing smooth. We brought them 14 deals in the past 6 months. I would say only 1/5 is difficult in that they have to get pay offs and wait for docs from that state showing satisfied liens.

What portion of the fees should negotiate? Or maybe just ask them for a discount and see what they offer?

Adam