Should You Undercut the Signing Service?

By Mark Wills - Course Instructor of the Loan Signing System and Forbes Real Estate Council Member

Notary Public Loan Signing agents constantly ask me is it a good idea to try to undercut the signing service and market themselves directly to the escrow officer if they got the signing through the signing service to begin with.

This is a very interesting question. 

I mean is attempting to undercut the very company that gave you business even ethical? Does the escrow officer mortgage officer or real estate agent agent look down upon you for trying to attempt this? And what are the down falls?...

So let's start off with is this even ethical? I ask you first is it unethical for a Starbucks to open up next to a mom and pop coffee shop? Is it unethical for a McDonald's to open up next to a Burger King? Is it unethical for one super market to advertise a lower price on soda than their next door neighbor’s advertised sale price? 

I can't be your moral compass. Your thoughts on business are your thoughts. 

However I can speak as an owner of a signing service who has signing agents attempt to under cut me every single week. 

To that I can say that I understand why one would do it. Do I necessarily agree with it? No. But do I understand? Yes. 

We all have families to feed so I don’t take it personal when I see it happen. 

That being said, once I find out they are trying to undercut my signing service, I do not use them again.

Which brings me to the real point of this blog. The real question should be does under cutting a signing service make make you more money!? 

The answer is frankly, it depends. 

If a signing service is feeding you a ton of business, I'd argue it's better not to rock the boat. ​

When (notice I said “when” not “if”) the signing service finds out, you will not be used again. So is it worth $50 more per signing but losing all their business? 

So trying to under cut a signing service simply comes down to math. A math problem you need to make. 

Oh and to answer the question whether or not the mortgage professional will look at you funny if you are trying to under cut the signing service. The answer is no, they get solicited business so often they probably will barely recognize that you even pitching them. 

So if you are thinking about undercutting a signing service who gave the signing, think long and hard if it makes sense. No one can blame you for looking out for yourself but does it really make sense in the long run?