In some markets, it may not yet seem like it. But even as some lenders continue to ride the refinance wave, the forecasts for the coming year are fairly aligned in agreeing that the refinance boom will be receding soon. For some, it already has. For others, maybe in a month? Three months? Five months? Obviously, we don’t really know. But it seems likely that, barring some incredibly impactful and unexpected event, we’ll be doing much more purchase business in the coming year than we will be refinance.
The forecasts also agree that volume will be high again in 2022. The downside is that, like most boom markets, the mortgage and title industry expanded to meet the historic demand we saw in 2020 and 2021. That means there are more mouths to feed. And while the proverbial “pie” is still ample, it will be smaller than the giant feast we’ve been enjoying.
So what does that mean for you?
If you’re a REALTOR or loan officer, you already know what you need to be doing. You’re shoring up your relationships, scrubbing your leads and double-checking your CRM. A competitive purchase market is built upon leads, marketing and sales. But if you are a lender, you’re probably also becoming more and more aware that 2022 will likely be more expensive for lenders. “Margin compression” may end up being the phrase of the year, and with good reason. When volume is sky high and a product lends itself naturally to streamlined production processes, we don’t talk too much about margins. But the purchase transaction takes longer to close, comes with more complications and can be costlier to produce.
So, REALTORS and lenders, the service providers you choose on the title and closing side can make a difference in a purchase market as well. Turn time is a great example. If your provider helps shave a day or two (or three) off of the closing process because it’s already positioned for efficiencies, your closing process is that much shorter as well. Your staffs are more productive as they move on to the next file or next sale. And, as an added bonus, you’re likely to have a happier borrower on your hands when the closing process is smooth and quick. Can’t hurt the repeat or referral aspect of marketing, right?
For title companies and other service providers, now is also the time to revisit your production and service processes as well. How automated are you? Are there costly, way-too-manual elements to your workflow that require more labor than your margins can bear? Outsourcing has long been a Business 101 solution for shrinking margins for a reason. It works. Simply being able to eliminate some fixed expenses for a provider able to scale its services is a classic and effective way to relieve some of the margin pressure.
This isn’t the first posting we’ll do about the coming purchase market and it likely won’t be the last. But we haven’t truly seen a more-or-less nationwide purchase-dominant market in years. Here’s the best news. All indications are that the opportunity will be there. And a little competition never hurt, right? It’s time to get prepared and have a plan!
You’ve seen Instagram Reels and TikTok videos everywhere and might be thinking to yourself, "How do I even create one of these?" Don’t worry. Here is your step-by-step guide to creating your first Instagram Reel for your real estate business.
Step 1: Select the Audio
Click on the music note icon on the left-hand side to open Instagram’s audio selection. From there, you can search trending audios, audio categories, and your saved audios.
Step 2: Select the Length of Your Reel
Under the music note icon on the left, you’ll find the option to change the length of your reel. You can choose from 15, 30, or 60 seconds. All you have to do is click on it until you get your desired reel time.
Step 3: Choose an Effect
If you’d like to use any beauty, background, or lighting effects that you normally use in your stories, you can click the star icon on the left-hand side of your reel’s menu. Instagram will give you tons of options, including your already saved filters, as well as trending ones.
Step 4: Set the Timer
If you need a little time to get into a position to do a viral dance or create a reel that incorporates a few different video segments, you can use the Timer/countdown option.
Once you click the timer icon on the left-hand side of the menu, you’ll find 2 countdown options of 3 or 10 seconds and notice a sliding scale where you can change the amount of time you want to record.
If you want to record multiple videos for your reel, slide the color bar to whichever spot you want to end that video segment. Next, select "set time." You can do this multiple times depending on the audio length and the length of the reel you selected. For example, if you selected 60 seconds, you could create six 10-second videos for that one reel.
Once you’ve set the timer, your Timer icon should show a white background on the main reel screen. Then, when you’re ready, hit the record button.
Congratulations on Creating Your Very First Reel!
Remember, the more you create in reels, the more comfortable you’ll get, and the more content you’ll create for your audience.
Here are some ideas to get you started:
Want more inspiration or additional how-tos for social media trends like this one? Let us know!
Realtor Kevin got an email from a prospective buyer who was ready to make an offer with their loan pre-approval attached. Kevin clicked the attachment to view the buyer’s documents, but there wasn’t anything there. "That’s strange," thought Kevin, and he closed his email. What Kevin didn’t know is that spyware was just installed on his device, and now, hackers had access to everything! The hackers were able to intercept a different deal Kevin was working and re-route a $257,000 wire from a REAL buyer working with Kevin, losing his client’s hard-earned money and their home purchase.
You’ve heard it before, but we’re going to tell you again! Your email and cyber security are paramount to your business - and your clients’ money.
From wire fraud and malware to personal information loss, there are several ways cyber crooks can succeed in a heist at your loss. There was OVER $213 million reported loss from real estate fraud, just last year!
Here are just a few tips to ensure you’re not a sitting duck for scammers and hackers:
By protecting yourself and your devices with layered security, you are decreasing your chances of a cyber-attack. At Florida Agency Network, cyber security is our top priority to ensure you and your clients have a secure transaction from start to finish.
Take the FEAR out of FIRPTA
FIRPTA is an acronym for the FOREIGN INVESTMENT IN REAL PROPERTY ACT of 1980. We know FIRPTA sounds crazy, and it does have a bunch of rules. But the idea behind it is simple – when buying a house that is owned by a foreign party, the title company must withhold a portion of the sale to make sure they pay taxes and it’s up to the BUYER to report the sale to the IRS!
Sounds complicated, we know… so here are 5 Facts to take the FEAR out of FIRPTA
FACT 1: WHO IS FIRPTA FOR?
The first thing to know is that FIRPTA only applies to buyers that are buying from a seller who is not a US Citizen/Resident Alien. There are several identifying factors for a foreign person or company, which the title company will discuss with the seller. If the seller is a foreign person or company, then there may be a portion of the proceeds withheld from closing. The seller will apply for a TIN number before the sale by filling out the W-7 application, if it’s the first time selling a property in the US.
FACT 2: CAN THE SELLER BE EXEMPT?
Yes! If it is a home with a sales price under $300,000 and the buyer intends to occupy the new home as their primary residence for most of the year, over the next two year period of time, the property is entirely exempt from the withholding. The buyer will be required to sign an agreement to confirm their intent to reside. This fact means for some people, FIRPTA never comes into play – but there’s still some paperwork you’ll need the parties to sign at closing.
FACT 3: HOW MUCH IS WITHHELD?
IF the sales price is over $300,000 to $1,000,000, the required withholding is 15% regardless if the buyers intends to occupy the property full time. There are some other rules that can make the withholding % increase or decrease, however, those are more rare.
FACT 4: What about a SHORT SALE?
Unfortunately for the seller, sometimes the sold home is worth less than the amount owed, but the FIRPTA requirements STILL come into play.
FACT 5: WE DO IT ALL FOR YOU!
The best part is when using ANY Florida Agency Network branded title company, we’ve got you covered when it comes to FIRPTA. We will discuss what is needed, based on the particulars for the parties and transaction and also have CPA’s that we can refer to, if needed.
To download more information about FIRPTA download our PDF here or call any of our locations.
HURRICANE SEASON
Each year, the country is hit with hurricanes, tornadoes, hailstorms, super storms, flooding, and more. With hurricane season running from June 1st to November 30th, coastal and inland region homeowners must prepare for potential storms annually. Of course, you have insurance to help you recover. But knowing and doing a few things now—while the weather’s fair—can help you and your family stay safe and help you protect your property if the unexpected happens:
• Stock up on important items such as canned goods, water, pet food, paper goods, flashlights & batteries with a battery-operated radio.
• Clean up around your property! Trim trees and shrubs, store outside items such as grills, boats, trailers securely – and yes storing the lawn furniture in the pool can work (if it’s rust proof!)
• Be sure all important documents are stored in a waterproof safe, in the cloud, or in a secure portal online. These documents should include your Homeowners Insurance policy, survey, marriage license, wills, social security card, title policy, etc.
• Consider Flood Insurance, even if you are not in a flood zone. Be sure to purchase early – it can take 30+ days for the insurance company to finalize your policy. Take photos of the property, inside and out, prior to the storm.
We’ve created a downloadable PDF of our tips for you and your clients. For resources by county on flood and evacuation zones, visit www.floridadisaster.org/knowyourzone.
What if you’re involved in a real estate transaction during hurricane season? Consider signing contracts and binding your insurance earlier than normal, and know your closings options in case of evacuation. Our options include, but are not limited to, Remote Online Notarization (RON), Mobile Notary services at your location, or a Traditional Closing (in-person at the office).
For more information reach out to your account executive or contact one of our locations: https://flagency.net/locations/
Visibility is key in the real estate industry. Are you searching for a way to boost your visibility in mere minutes at zero cost to you? Check out Google My Business!
Google My Business is a free tool that will give your brand and reputation a rocket boost over your competition. We rely on Google’s business listings to be a trusted source for business information and reviews. Why not use it as a marketing tool for yourself and be the first to come up in a Google search for business information and reviews? At no cost!
To begin the setup, here are few things you need to know:
What’s Next?
Now that you’ve officially verified your listing, it’s time to optimize your Google My Business account by adding photos and videos, writing a compelling business description, encouraging your loyal customers to “Follow” you on Google Maps, and starting to request and manage your Google Reviews.
Have you updated your FANAgentOne app yet? If you haven't, its time to get moving! You're missing out on fast answers for your clients with market specific title fees, closing cost estimates in real time, and more.
Here are the new and exciting updates:
But the best part... all of this in the palm of your hand!
NEW to FanAGENT One? Check out these videos to learn more:
We all could use a little good news now and then, and for everyone closing with a Florida Agency Network we have some... good news!
Using Alanna AI, our state-of-the-art virtual closing assistant, realtors and their customers are automatically signed up for a series of "good news updates" during the process of their closing. Below are some of the notifications you can expect, as we do our part to give you good news!
Our goal is to keep you informed automatically about the process of your closing. This way you are ready to take the steps for you and your customer while preparing and finalizing their transaction. Of course, this also means we get to be the bearer of GOOD NEWS!
Be sure to download the PDF chart of automated good news updates and start chatting with Alanna AI today via text at 813-710-4126, by using the chat feature on our website, or by scanning the QR code below!
Florida Agency Network (FAN), announces the release of a new Electronic Earnest Money Deposit (“EMD”) program. This program is part of FAN’s continued effort to keep everyone safe and secure, streamline the closing process, and move that much closer to a true paperless closing.
Customers buying homes are now able to send their EMD electronically, allowing for a fully-digital transfer of funds, and eliminating the need to visit any of FAN's multiple office locations throughout the state. In addition, it allows for the added benefits of protecting sensitive information, enabling out-of-town closings, and it allows customers to receive a verified and automated receipt for their records. The service does NOT require the client to create an account, or download an app, to send the EMD electronically. It simply requires the click of a button from any of FAN’s websites where homebuyers are directed to Keybox, Payload’s platform for secure electronic real estate payments. “We’re excited to partner with FAN to enhance the home buying experience across the state of Florida,” said Ryan Rybolt, CEO of Payload.
“One of the items that is a consistent burden to our clients is the handling of EMDs. We live in a world of technological innovation, digital movement of funds, and less dependency on checks and paper currency. This new service offers convenience to our clients, and a more efficient solution for receiving funds. The days of racing to the title office within 72 hours of signing a contract, mailing or overnighting funds, or waiting hours for wiring instructions are history," said Aaron M. Davis, CEO of Florida Agency Network.
About Florida Agency Network
The Florida Agency Network (FAN) is a statewide alliance of title agencies that share services, resources, and technology. FAN has formed a strategic alliance amongst members and vendors, in addition to creating proprietary technologies, to better serve its clients, allowing it to provide customized solutions to protect and streamline the closing experience. Members share back-office services, pooled resources, access to industry-leading technology, improved efficiencies, and the ability to offer their clients greater geographic coverage throughout Florida with SOC 1 Type 2 and SOC 2 Type 2 security compliance solutions available.
For more information, please visit www.FLAgency.net
About Payload
Payload is a powerfully simple, yet robust, financial technology (fintech) platform to securely process credit card and ACH payments. The platform was built for developers, software platforms, and merchants who want to accept secure payments without the burdens often associated with card acquiring.
Keybox is Payload’s solution for processing secure, electronic real estate payment transactions. Keybox replaces manual check payments or costly wire transfers associated with Earnest Money, Agent Fees, Commissions, and other Real Estate transactions.
For more information, please visit www.payload.co or https://keybox.payload.co/?