Although it’s been a choppy year thus far, spring never fails to bring some life back to just about any market. This year, as order counts start to rise, will be a little different than the past few. If anything, while there will be opportunities out there, there will be competition—fierce competition—for those opportunities. A purchase market is just about always inherently competitive; doubly-so in a year of depressed volume.
Down market cycles call for agents to rethink how they’re approaching the market…and how they operate.
It's during times like these that title agents need to get the job done fast and well. They also need to do it at minimum cost. And while the industry has undergone some painful staffing cuts to reduce expenses, there are also many other ways to be more efficient. Quite a few of them involve seeing the opportunity present in just about everything and everyone. The real estate transaction is a chaotic ballet of constantly moving (and changing) parts…and participants. And the vast majority always have something to bring to the table.
FAN and its family of brands has always operated on the concept of “coopetition.” Yes, there are times when we’re vying with another title agency for a REALTOR’s business, but by and large, we see almost every business in our space as an opportunity to partner for mutual benefit.
Coopetition as a survival strategy
We’ve called before for the title industry to make 2023 the year of “coopetition.” That’s a made-up term that’s gaining favor in the business world these days, and it means collaboration among business competitors for mutual benefit. That’s a little foreign in an industry as competitive as ours, but consider the following. How many times has a title agent in one geographic market turned to a competitor in another market, steering clients and orders that competitors way in order to earn at least part of the business? Especially during markets like this, there are numerous ways for title agents to partner to win at least a share of the reduced opportunities out there. For example, we work with title agencies or settlement services businesses that don’t have a brick-and-mortar presence in the markets in which we specialize, but want to grow their geographic footprint in some form. We’ve also been involved in enough M&A activity that all kinds of businesses will consult with us to be sure they’re doing it the right way. Or, consider the title agencies seeking to scale their production costs. The FAN family can also provide shared or centralized resources, such as back office services, that give our partners increased scalability and flexibility. And you may already be aware that we are the leading digital closing/RON provider of all title agencies in Florida. We frequently partner with lenders and other title companies seeking to add these services to their offerings.
The world of real estate is a world of cycles. Our own Aaron Davis has written before about “recession-proofing” your title agency. We at FAN strongly believe that the businesses who survive the inevitable down markets are generally those that are willing to partner, expand their service offerings and scale their operations so that they’re in good position when the market (inevitably) turns again. Give us a call if you’d like to see how we can partner with you for mutual benefit!
It’s Wise to Recognize!
Recognizing employees for their efforts and achievements in their day-to-day duties has long been a cornerstone of effective management practices. Employees feel validated for their work, and it’s evident that the company appreciates them. As the employment market becomes more competitive, employers must find new ways to recognize and commend their teams for their work.
Craft a core recognition program that reviews employees’ value they bring and how they are recognized and rewarded. As a company grows, it’s challenging, but leadership must remain dedicated to new and innovative ways to improve employee recognition.
From a young age, people are recognized by their parents, teachers, and friends. Unfortunately, this drive and desire for positive affirmation and reinforcement, especially during formative developmental years, means that people may interpret a neutral or less-than-enthusiastic response as negative.
Employee recognition remains a driving force as people mature and enter the workforce. Consistent reinforcement encourages high job performance, helps your organization retain talent, and improves employee engagement.
Companies recognize their employees for many things, including common achievements, hitting desired metrics, going above and beyond, and reaching significant career milestones. Establishing criteria for what they are recognized for is as important as how they are rewarded. Consider the following:
While people appreciate general praise, recognition tends to be more meaningful and impactful when it’s tied to a specific objective or accomplishment. Be direct and genuine.
Recognition means more when received promptly, so find the time and make an effort now.
There are several ways to recognize employees for their efforts, and monetary rewards aren’t the only option. Catered meals, surprise time off or a significant shout-out can work well.
While grander gestures stand out and are an important part of employee recognition from time to time, never underestimate the power of daily thanks and other affirmations. Scheduling reminders for birthdays and work anniversaries are great places to start.
For more information, check out this article.
This time of year is full of joy and goodwill, and the time for a season of cheer is here. We want nothing more than to keep the party going, so don't let your guard down regarding the dangers of wire fraud.
This story is certainly no ‘Twas the night before Christmas, but it’s another example of the importance of remaining vigilant. Grinchy criminals are constantly evolving and will be even more innovative in the new year.
This time of year moves quickly, and more than just our transactions are getting targeted. Virtual meetings are being watched, and outside of the real estate industry, fraudsters have their eyes on our holiday shopping.
Criminals strike when we let our guard down. We must suit up (just like Santa) to keep our holiday spirit intact. So, we put together these reminders with a holiday twist based on one of our favorite Christmas movies…Christmas Vacation.
Just like Christmas Vacation, we want everything to be just right in the end. So, we wish you Happy Holidays and hope your time with family is joyous, blessed and safe.
Evolving takes place in all parts of the world. In our personal and professional lives, progress happens when we find better ways to complete tasks that are more efficient and effective, and changes are put in place for the betterment of all parties involved.
Before proper title searches and insurance implementation, conveyancers were the “experts” who conducted title searches and signed legal documentation once the title was proven clear and ready for sale. This practice began in the early 1800s, but as the California Gold Rush ensued, conveyancers, abstractors, attorneys and title experts followed the rush to help parcel and sell the land.
The past ways of doing things could not keep up with the increase in title transactions strictly due to volume. So much was happening quickly, and in 1986, the court case of Watson v. Muirhead occurred. In this case, Watson hired Muirhead as the “expert” in purchasing a Pennsylvania property. Muirhead discovered title defects but still reported the title as good and unencumbered. Watson suffered losses from the unreported liens, and the case left no questions that changes were needed.
Much like the quick pace of the Gold Rush, the pandemic rushed in, and the industry needed to adapt and overcome to keep up with the new norm. It’s fair to say that many assumed everything would return to normal once the threat settled. Still, industry professionals found that implementing technological advances streamlined the title process.
Along with these changes came concern regarding the personal aspect of title closings. Regardless of the process, people have always been the backbone of the industry, and many questioned how technology would affect the personal relationships customers and clients had come to expect during settlements.
It’s clear today that the combination of the proper technology and experienced title professionals is the key to successful settlements, but let’s take a closer look at how we transition with technology as it propels us into a brighter, more compelling future.
Technology is here to stay, and the benefits for companies and customers help guide and direct the industry's future.
By now, you may have heard about “The Chainsaw Brothers,” our own CEO, Aaron Davis, and his brother Nate. When Hurricane Ian devastated the Port Charlotte community in Florida, they felt compelled to show up, toting 30 new chainsaws, ready to get to work helping others to clear the debris and wreckage.
But both Aaron and Nate want to be very clear that this really isn’t about them. They received the publicity, but that’s not why they did what they did.
Instead, this is about the Florida Baptist Disaster Relief organization, a non-profit serving some of the hardest hit areas of Florida. This is the group that was among the first into Port Charlotte. Nate tells us there were volunteers in the group whose own homes had been affected by the same storm, and yet, here they were, helping others with hot meals and other services.
If you take one thing from this blog, please think about making a small donation. They don’t promote themselves, nor will they. And they go largely unheralded. Aaron and Nate would rather you express gratitude to these fine people.
If you take two things from this particular posting, please consider this—especially in a world where people are more likely to pull out their phones to take personal video than help someone in need. Aaron and Nate were raised in a small town on a small farm. They were raised to simply step up when the community was in need. No need to tout one’s own good deeds. Just do it. It’s part of the responsibility of being a part of the community.
And yet, it’s a lesson lost in this volatile times.
So the next time you see someone in need, or something terrible happens in your neighborhood—it need not be as big as a hurricane—consider stepping up. You don’t have to buy chainsaws. You don’t have to be wealthy. There’s always something that can be done. Nate reminded us that both he and Aaron aren’t contractors or construction people, just businessmen working behind laptops. But that didn’t stop them. So rather than thanking them, consider stepping up in your own small way the next time someone in your community finds themselves in need.
There’s no hiding from it at this point. We’ve entered a significant market downturn and the likelihood of recession is high. But, as we’ve said repeatedly, that doesn’t mean the world is ending, either. It’s been a while, but we’ve weathered numerous down cycles in the past. And as far as we’re aware, no economists are predicting anything close to what happened in 2008. If anything, it’s still likely we’ll see around $2 trillion in mortgage origination volume, which means there will be very real opportunities for title agents to do business and even succeed in 2023.
Prepared title agencies, that is.
Our own Aaron Davis was recently published in Housing Wire on this very topic. (Registration Required) He experienced the crash of 2008 and vividly remembers tracking which lenders had become insolvent in order to determine which of the agency’s closings would be “funded” by checks about to bounce. Challenging times drive successful leaders to find new and innovative ways to get things done. We believe that will be the case again over the next year or two.
Aaron suggests having a carefully considered capitalization plan in place…and do it yesterday. Now is not the time to be solely dependent upon a fresh capital raise. And yes, even when order volume is down, it’s still time to set something, anything, aside for future reinvestment into the business.
It’s also quite understandable that many title businesses may need to undertake some painful cost-cutting decisions. Aaron suggests that, while cost cutting can be a necessary, if undesirable, tool when a market turns down, he reminds decision makers and owners to think through those cuts very carefully. Sometimes, a business cuts unnecessarily deeply, to the point that it impairs or even irretrievably damages its own client base and brand.
Be sure to have a look at the entire article over on Housing Wire. The point is that, yes, times are becoming challenging, but the world is not ending. Title business owners who take a step back and review the big picture may even find that the innovation and discipline driven by a decline in order volume could lead to greater success during the next market up-tick.
Pull up a chair! It’s time to get cybersecurity aware!
October is Cybersecurity Awareness Month, and the crew at Florida Network Agency is on board to share tips that can protect your most important asset…YOU!
Freddy McFraudster would like nothing more than for us to sit back and let him have his way with our money and joy, but with a few tips and the five Cs, we can send him packing with transactions intact and closings complete.
Scammers and fraudsters should be scared of YOU at this point because you are armed and dangerous regarding cybersecurity awareness, but don’t save it all for October. FAN encourages you to remain vigilant year-round. If you have any questions or ideas about cybersecurity, please contact us today.
There are many documents discussed during the closing process. One of those documents is the deed.
A real estate deed is a document designed to transfer a property from one person, known as the Grantor, to another person, known as the Grantee.
Regardless of the type of deed, it must contain basic information to be considered valid, including a legal description of the property being transferred, the identity of the person selling the property, and the identity of the person buying the property.
Still, there are various types of deeds that you may see, and each one grants the new owner certain promises from the previous owner.
There are several different types of deeds that can be used during the sale of a property, including the following:
WARRANTY DEED
A warranty deed is a transfer of title where the seller pledges to the buyer that the property is owned free and clear of all liens.
This deed is the most commonly used deed with the issuance of title insurance.
SPECIAL WARRANTY DEED
A special warranty deed is a deed to real estate where the seller of the property warrants only against anything that occurred during their physical ownership.
In other words, the seller does not guarantee against any defects in clear title that existed before they took possession of the property.
QUITCLAIM DEED
A quitclaim deed is used to transfer an interest in real property from the Grantor to the Grantee if the Grantor has any interest in the property.
The Grantor does not, however, give any guaranties or “warranties” about the title and may not even own any interest in the property. The name comes from the fact that the Grantor “Quits” any “Claim” to the property.
This deed is often used to clear up defects in title and for transfers between family members or spouses.
Remember, we are always available to answer questions about your client's file and have attorneys on staff to assist you in choosing the right deed for your client.
We've created a digital document with the deed descriptions to help your client better understand these terms during the closing process.
Please fill out form below