Escrow Pros Reveal Challenges in a Hot Market Year

2021 was a banner year for real estate professionals, as many Americans were on the move. To put it in perspective, a total of 6.1 million housing transactions were closed in those twelve months, up from 5.6 million in 2020. Pandemic-driven demand sent home sales to the highest level since 2006—and as brokers and agents rushed to keep up with demand—escrow professionals and others, upon whom timely closings depend, were challenged to step up their support.
 
Perhaps not surprisingly, as employers everywhere struggled to fill positions, a shortage of employees was the biggest challenge faced by escrow companies. A PropLogix survey of more than 400 escrow and settlement professionals in all 50 states showed that hiring and training was the year’s undisputed top test for company leaders, and that increased workload with fewer employees was the year’s greatest trial.  
 
More than half of those surveyed said closing on time was the biggest day-to-day struggle, followed closely by juggling too many responsibilities and not having enough time to complete tasks such as searches and curative work.
 
Asked about workload, the largest percentage of respondents said they were personally handling 21-30 closings a month, whereas just 10 percent of respondents were handling that many closings a year earlier.
 
As for lender concerns, a survey by Williston Financial Group showed turnaround time was the year’s chief operational challenge, followed by volume and staffing, technology implementation and integration, communication, training and time management.
 
With 2022 predicted by most sources to be another busy, if slightly slower-paced year for real estate, we appreciate the challenges real estate agents will continue to face. As your escrow partner, we are proud to help you close transactions in as timely and hassle-free a way as possible and commit to once again meeting whatever operational challenges may arise.
 
Barbara Pronin is an award-winning writer based in Orange County, Calif. A former news editor with more than 30 years of experience in journalism and corporate communications, she has specialized in real estate topics for over a decade.

This material is not intended to be relied upon as a statement of the law, and is not to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice. The material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy.