If you were to break down your E&O costs by the transaction... what would the average amount be? Around $35-40 per transaction? Does this sound about right or is yours higher or lower?

My E&O is $35/month.

Spencer,

What about per transaction? Are you the broker or are you an agent that pays that to your broker and do they subsidize your E&O?

I'm an agent. I use to pay $25/transaction. I think my broker was tired of caring new agents that weren't producing so they changed it to $35/month. I like the per month deal better. Especiallly since you are covered whether you complete a transaction or not, it makes more sense to me to pay per month. Hope this answers your question.

Thanks. I am trying to nail down an average cost to the broker/owner for E&O on a per-transaction basis and I suspect that at $25.00 per trans. they were covering some of the cost... same as at $35/mo.

I don't know about covering the cost? How many agents do you have? We have between 75-80. Maybe that will help you.

The broker I work for charges us $175 per transaction for E&O. I think this is too high but I'm not calling the shots.

For what its worth

I can tell you last year the unit cost for myself alone as broker/owner with only and assistant was $19.05 per transaction file for REO E&O. Presently it stands at $23.53 per transaction.

The varying E&O transaction cost is inverse to the volume of transactions I close. I suppose if I did enough transactions a year it could be $1 per transaction file.

Yor

Roy, uh, I mean Yor, are you dyslexic?

Drawkcab sepyt tsuj eh, on

So who does everyone use for their E&O carrier?

I use CRES

I was just having this conversation with my office manager and I thought it was unfair that the agents that "sell" pay MORE in E & O because it is charged per transactions. Soo next year if my E & O is $2,000 and there is 20 agents I will divide it by everyone rather u sell 1 or 2 and we will split it. It is the cost of doing business. Any new agents will pay per transaction until the next year rolls around and they are with us for 1 Full year. That is fair.

I use Williams Underwriting (http://www.wugieo.com/) and I want to pay it myself, anything else is not fair.
When closing about 50 transactions a year and paying $25 per transaction years ago, was definately not fair.

Oh that is high. My last broker charged $35 per transaction, which made the top seller carry the rest of us, but where I am now we page every six months. It's about 400 total.