I could be argued, I guess, that nobody should be considering a new title company or agency during a time of a declining in the real estate market. But, I am not sure that is true.
First, there is the argument that there is really no good time to start a new company.
Second, in boom times, loyalties run high. If a real estate agent
is making good, easier money, even though the brokerage is not
preparing the agent for the future, what is the incentive to leave? A
weaker market disrupts business relationships. It causes agents and
others to react to what is happening, and it causes them to reevaluate
their situation. I puts them in a position to make a change. All of a sudden you can see the flaws in the business partners referred because you have the time and are not blinded by easy success. It is easy to serve someone well in a up market. Some companies make it look easy because in an up market it is easy. In a down market the truth reveals itself.
Third, as a new new title company, there is nothing to lose because the company did not participate in the better times. Business that represents a loss for some agencies represents a gain for the new one.
It is not wise to enter at the top of the market because there is no other place to go but down. The better choice, it would seem, is to enter at the bottom of the market where the opportunity for growth over time is the greatest.
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