i have a feeling that the technological lag is not driven primarily by regulatory burden, rather, it's a matter of a very old industry desperately clinging to the last bits of what was once a very lucrative model. logically, the folks in this business that have historically made tons of money doing it are not interested in change.
for example - the agent compensation model hasn't changed much in 30 years (and neither have the real estate commissions, for the most part. it was 6% around here 30 years ago, and it's still 6% today.) what HAS changed is the ease with which most agents can now do their jobs. 30 years ago, agents needed to research specific homes for their clients, know the school systems inside and out, help clients understand their financing options, and be neighborhood experts. today, buyers and sellers use the internet do those things.
and the title companies. think about what they do. here in michigan, title companies primarily coordinate closings, and provide title insurance, both of which could be automated FAR, FAR more than they are, reducing time frames and cost. but again, buyers and sellers are used to these charges. and title companies are happy to receive them. no one really questions it.
case in point: last year we bought a brrrr deal - single-family residence. we paid the title company for a title insurance policy at closing. so far so good: for $600 i get the peace of mind that i'm the only one who owns the place (the title hadn't changed hands in 50 years - it seemed like a good idea to me.) we did the rehab on the house, put a tenant in it, then went to refinance. and guess what? the title company wanted $600 to issue a title policy again. say what?! clear title was established 90 days before, when we bought the place, and i had been the only owner since. how much effort would this "title work" require on the part of the title co? ZERO. wow, how stupid are we willing to let ourselves become?
We pay appraisal fees and recording fees in the same blind fashion. we accept the whole 30-45 day closing time frame idea. why? to make our deals go through, and to get on to the next one. pay the fees, accept the long time frames, close the deals, and find the next.
which brings me to your question, @James E. what should we be doing to help? we should be thinking about our deals, of course. but we should also be more interested in the logic of the system we're working in. what fees are we paying, and why? we should value what efficiency would do for our TIME and our BANK ACCOUNTS. if enough of us balk at ridiculous fees and even more ridiculous time frames, how long can the status quo stand?
[btw, i didn't balk at that second $600 title policy fee. i paid it so we could just get closed and i could go find the next deal. i'm currently seeking counseling for my hypocritical tendencies! ;) ]
