I’ve read a lot of responses to my original post. I found some post around this topic say that this is just the business it’s better to take something versus nothing. So I wanted to break it down into $. We are a business too and we must break down what it truly costs to run our business and how much are we really making of the signing fee paid. When you get a big deposit or a bunch of checks in feels good and looks good and we can easily forget or not realize what it costs us.
Disclaimer: These examples are strictly based on my costs in the Bay Area (California) and could be higher or lower in a different part of the U.S. Also I am going to use an “average” in the examples so again this can differ, plug your true numbers in and you can figure out your own personal scenario.
Ok for a seasoned already in business Signing Agent (meaning no start up costs to factor in, just on going costs)
Average Refinance
- 150 pages (300 when having to print 2 copies)
- 35 miles average miles to signing/from signing/to FedEx drop
- Print cost average .15 per page (Laser printer, standard paper. Note this is also the cost at Staples, FedEx Office in the area BUT I have actually calculated my real costs by dividing the number of pages I get from a toner kit, my drum kit, cost of paper etc. but I use this average of .15 because there are Notaries around who actually use outside printing)
- IRS mileage .56 per mile (you can use actual costs of gas, insurance, plus maintenance costs. I will use the IRS rate because it’s a good average and I also have Tolls I have to pay which I will not add in this example. Also later I kind of use this amount as a “catch all” for other expenses. Again, I have determined my “actual” costs and the averages I use are pretty spot on.)
- 2.25 hours an average total time spent which includes, confirming appt & reviewing instructions, printing/prepping docs, travel time to/from/to FedEx, signing/notarizing docs, scan back
- Costs that people usually do not take into consideration because it’s part of their household BUT they are costs of running a business (home office expenses - internet, electric, computer, phone, supplies, etc.) Remember every business has similar expenses
So here we go…let’s look at average total for this signing:
$45 print costs
$19.60 mileage rate (So this number is based on IRS mileage rate. I use this number as a catch all to give me an estimate of my actual costs (gas, toll, %of annual maintenance, %of insurance and a % of home office costs, %of supplies, etc. Since I know my % for every business expenses, I already know this number is pretty close to my actual costs. For example my actual costs for this signing would be around $21)
It will cost me $64.60 for a 150 page refinance order. With no issues, no traffic, no reprints, no problems
If I took a $75 signing fee I would net $10.40
I would net roughly $4.62 per hour for a signing that took up 2.25 hours of my time.
$95 I would net $30.40 or $13.51 per hour
$125 I would net $60.40 or $26.84 per hour
$150 I would net $85.40 or $37.96 per hour
So when I advocate for SAs and fees I am not just coming up with number off the top of my head. I have done the math for myself personally. When I started in the business in 1997 the signing fee started at $50 if I took an assignment from a Signing Company but there was no printing and prepping and we were provided with the return package and all we had to do was sign and drop off. No scanning back, no reprints, no waiting last minute for docs, etc. The signing company confirmed everything. Signings directly for an escrow company and lenders of course paid more because the signing company was not the middle man. My issue is that as responsibilities have increased the fee should more accurately reflect this. I am not bashing newbies, I only want them to be aware that they need to do the math. They are trying to recoup their expenses and eat and like some newbies have indicated, if there are seasoned signing agents taking low ball orders just to make something then we all need to do the math.
Look this is great business, I just think that because we as a group have not had an organization to support Signing Agents we have kind of been left to battle among ourselves. We are not employees but are supposed to be Independent Contractors yet tell me one Signing Agent contract have any of you negotiated. I have worked as a Contractor in other industries and the contract is mutual. I tell them the services I provide and my rate, there may be some negotiation but in the end the contract is a mutual agreement not a template. Appraiser pretty much have a standard fee so I see nothing wrong with Signing Agents have a starting rate of $150 for loan docs, $125 start for seller docs, Single docs start rate, etc. and a per page print costs. Most will give $15-25 for printing which usually doesn’t even cover our actual costs. This may sound very harsh, but I feel it is an insult to offer a Signing Agent professional $75 for a refinance and a further insult that an environment has been created where SAs squabble about taking it to get recognized. Just think about it. If everyone committed to at least countering for a higher rate, then at least we can get the ball moving towards a better fee goal.
Lastly, I want Signing Companies to not be viewed as the enemy. Yes they work to provide us work BUT if they want to be the middle man, then charge the fee necessary to give SAs a higher fee. My Escrow Officer friends tell me that the average fee they are charged by a signing Company is between $175-250. We have to remember, the Signing Company is not paying our fee the Borrower, Seller, Lender or Agent is. People are paying Doordash, Instacart, Uber, etc. premium rates to have someone show up at their door so the service (especially during this health crisis) we provide is worth the money.