Millennials and Gen Z are entering the housing market in greater numbers, and it’s a big opportunity for title agents, particularly given the static housing market. It’s no secret that real estate sales were down in 2023, and that trend has continued throughout the first part of 2024. Capturing the pent-up demand of younger buyers is one way to overcome market challenges and boost profitability. But success hinges on shifting your mindset and adopting the right tools and strategies. Here’s how to do it across a few key marketing channels.
The long road to homeownership for Millennials and Gen Z
For many Millennials, it has been a difficult road to homeownership, and not because of eating too much avocado toast.[i] The 2007 financial crisis and subsequent Great Recession is one reason why Millennial homeownership has often lagged their generational predecessors. The picture has changed, however, in recent years. Nearly 40% of new home buyers are now Millennials. The generation also makes up the highest percentage of first-time buyers, increasing their proportion from 70% to 75% over the past year.[ii] Not to be outdone is Gen Z. Data shows that 30% of 25-year-olds are homeowners – 3% higher than their Gen X parents when they were the same age.[iii] While Gen Z currently only makes up 4% of national homebuyers, major subsections such as single women are trending higher than other generations.[iv]
Social media
Let’s begin exploring how to reach these folks by looking first at social media. Why? Well, because it is perhaps the single most important channel for marketing to younger buyers. More than 1 in 4 Millennials use social media to find products and services, and nearly half use different social platforms to conduct research.[v] Blogs circulated via social are even more popular, with 1 in 3 relying on blogs to inform purchasing decisions.[vi] By developing your social presence and incorporating best practices like short-form video, you can amplify your impact and grow your brand.
Mobile friendliness
These days, having a mobile-friendly online presence is a must, especially if you are trying to reach Millennials and Gen Z. Research shows that over 96% of internet users ages 16-64 own a smartphone[vii] and nearly 62% of all website traffic comes from mobile.[viii] Stats like these don’t even speak to the popularity of apps geared toward mobile users. Data shows Gen Z currently spends between 24-48 hours per month on TikTok – which amounts to approximately 24 full days every year![ix]
What does this mean for title agencies? Just put yourself in the mindset of a consumer! Let’s say title agency #1 has a website that looks great on your mobile device while title agency #2 website does not. Which one would you think is going to take care of your closing needs more effectively? I suspect you already know the answer.
Online reviews
One characteristic of younger generations is that they grew up using review sites like Yelp, Google, Foursquare, etc. This trend has continued to the present day. For example, 86% of Gen Z reads reviews ahead of making a first-time purchase.[x] Data like this means your agency must establish a presence on review sites and stay active by responding to user comments and complaints. The benefits of doing so are two-fold. You will become more visible to younger users. And you will showcase that you are a responsive, reliable company committed to their satisfaction.
Partnerships
Even in a digital-first economy like ours, good old word-of-mouth marketing still can’t be beaten. One of the best ways to build positive buzz for your brand is by developing relationships with the real estate agents who guide customers through the home-buying process.
Final thoughts
As anyone involved in real estate knows, this industry is always changing. The rise of Millennial and Gen Z home buyers is just one recent development. By getting digitally savvy, meeting these younger buyers where they are, and making an honest effort to create positive word-of-mouth, you can capture their business and grow your own profitability.
If there is one thing real estate and title insurance professionals know, it’s that fraud is a massive problem. In fact, nearly 3 in 4 firms reported in 2023 that they had experienced an increase in seller impersonation. The serious threat has long been on the radar of the folks who work at Texas Secure Title Insurance Agency. “We put the security of our transactions at the top of our priority list. This is a shared responsibility – from the time the file opens until it is closed,” said Renee Hicks, Vice President of Operations.
Having a collective commitment to security paid off recently when Texas Secure confronted two suspicious real estate deals. By adhering to their tried-and-true policies, they foiled the fraudulent transactions and were recognized by the Alliant National Crime Watch program. Let’s look at what happened during each transaction.
Well-founded caution
Texas Secure’s title examiner was already on high alert when they began working on the first of the two fraudulent transactions, as it was vacant property. Their caution soon proved well founded. Worrisome details emerged during the initial examination process. When the examiner searched for more information about the owner, they found a court history littered with fraudulent deeds. One of these deeds shared the same notary public and GF number as the deed involved in Texas Secure’s file. The transaction’s deed had also been submitted by the owner and not the title company – a peculiar feature that further indicated the deal was likely fraudulent.
Teasing out the connections
The second fraudulent transaction also had clear red flags, including a possible connection to the first property described above. “The Affidavit of Heirship used had a ‘GF Number’ that looked like those used in the fraudulent deeds our examiner had seen the day before,” Hicks explained. The fact that the property was conveyed outside of the title company was another strike against it.
Digging into the details, Texas Secure found that the property owner had allegedly signed a “Texas General Warranty Deed” in 2022 to another party and filed an Affidavit of Heirship (AOH) for someone deemed to be his wife. By utilizing the online database “Find a Grave,” Texas Secure cross-referenced the name of the owner’s wife and discovered that the owner had died in 2018 – meaning that he could not have signed the deed, and that the transaction was fraudulent. Corroborating this further was that signatures on the deed and the AOH did not match.
Always adhere to policy and protocol
“It can be tempting to bypass certain standards, steps, or protocols to save time or because of long-standing relationships with other real estate or financial professionals,” said Hicks, reflecting upon the fraudulent transactions. “However, our team understands the impacts to all stakeholders when proper protocols are not followed. There is more at stake than closing the deal.”
Indeed, Texas Secure’s experience during this ordeal is a crucial reminder of how important it is to scrutinize each aspect of a given transaction. Moving methodically and always adhering to protocol is key to combatting fraud, preventing future claims, and most importantly, protecting transaction stakeholders from becoming victims.
A never-ending fight and a worthy payoff
Texas Secure’s story also speaks to the frustrating, albeit necessary, fight against fraud within the title industry. As Hicks remarked, “Will we ever be able to eliminate fraud? Of course not! However, we as an industry can rally together and have each title professional accountable for carrying out the necessary steps to secure real estate transactions.”
While there may never be a cure-all for this endemic problem, adhering to company policies, staying mindful of industry best practices, and remembering the stakes involved for property buyers and sellers can make a major difference.
And as Hicks highlighted, the emotional payoff for doing so can be tremendous. “It is rewarding to know the efforts and time we put into continuously creating new policies and procedures to safeguard our company and our underwriters is paying off,” she said. “Our examiner, Lizzie Angle, was especially excited. She felt her daily efforts were validated. Thorough, accurate and proper examination is part of the defense strategy against fraudsters.”
Want to learn more about the Alliant National Crime Watch program or submit your agency’s story. Check out the details here.
A contract for deed agreement is nothing new. These agreements are between a current owner of the property (the “legal titleholder”) and a person who is interested in purchasing the property from the owner (the “equitable interest holder”) but may not be eligible for traditional financing (or for other reasons), and the owner agrees to finance the transaction. The equitable interest holder typically takes possession of the property in exchange for making monthly or other periodic installment payments, along with possible other obligations, to the legal titleholder. If all the terms in the agreement are successfully satisfied, the legal titleholder is expected to transfer the title by deed.
Contract for deed agreements are frequently not recorded in the county land records. However, as an example, Texas requires executory contracts be recorded by the seller within thirty (30) days from the date of execution or the seller may be liable for damages to the other party for noncompliance. In Texas, such a recorded executory contract is treated as a deed with a vendor’s lien. See Tex. Prop. Code § 5.076 and 5.079. Other states also have statutes addressing executory contracts.
Contract for deed agreements have been the subject of many lawsuits. Generally, a lawsuit can be the first opportunity for a non-party to know that an unrecorded contract for deed agreement exists. A claimant is either sued or discovers the conflict through other communication, typically from the equitable interest holder. The claimant, at times, files a notice under its title insurance policy seeking coverage for such disputes. As each case is different and depending on the specific title policy, a coverage determination will be unique to the situation. Therefore, it is important to be aware that contract for deed agreements exist and that they may impact a new buyer’s title or a lienholder’s interest in the property.
The claims team has encountered situations involving contract for deeds. For example, a lender may be preparing a foreclosure action involving a recorded mortgage or deed of trust when it discovers a lawsuit naming the lender’s borrower. The plaintiff alleges it entered into a contract for deed agreement with the prior owner several years earlier. The plaintiff states the prior owner failed to execute the deed to the plaintiff at the completion of the terms of the agreement and now seeks a recordable deed to the property, free and clear of the lender’s lien. The plaintiff also argues it timely satisfied all obligations under the contract for deed agreement before the seller sold the property to another and the lender’s lien attached to the property; and thus, alleges that the subsequent transaction is clouding the plaintiff’s title and is void. There may be various legal and equitable defenses for the lender in such a lawsuit, but the time and expense incurred may be significant.
Practical Pointers
Before closing on a home, there may be ways to uncover and address a contract for deed agreement before the issue culminates into contentious litigation for new buyers and lenders. Here are some steps to consider:
If the seller asserts there is a tenant occupying the property, ask if there is or has been any contract for deed agreements (a/k/a installment purchase/sale land contract) with the tenant or any other party.
If there is a contract for deed and the intended purchaser has defaulted or violated the agreement, request written documentation identifying that the contract for deed agreement is cancelled. In certain cases, this may require legal action by the seller to establish that the equitable interest is extinguished. It is recommended that this documentation be recorded.
If the terms of a contract for deed are still in effect, however, the seller and the intended purchaser mutually agree to terminate the contract, it is recommended that a written termination of the contract for deed agreement between the parties be obtained and recorded.
Last, if the intended purchaser under the contract for deed is unwilling to release their equitable interest or asserts that the legal titleholder has violated the agreement, then contact the anticipated title underwriter and the proposed lender prior to the closing date to discuss what options may be available for the situation.
A contract for deed remains a resource to help some with the home buying process. However, the impact of such an agreement can later result in a challenge to the title and impact others when a dispute arises between the parties in the agreement. If you have questions, reach out to me or any member of the Alliant National claims team.
This blog contains general information only, not intended to be relied upon as, nor a substitute for, specific professional advice. We accept no responsibility for loss occasioned to any purpose acting on or refraining from action as a result of any material on this blog.
With fraud rising across the title industry, it’s important to watch for both red and pink flags.
While working on a recent vacant lot transaction, Tirey Smith and Joe Fernandez of Lone Star Title Company of El Paso came to a similar conclusion about the property’s seller: something was up. Sure enough, their intuition soon proved right. The transaction’s seller was indeed a fraudster. By stopping the fraud, Smith and Fernandez became the latest honorees of Alliant National’s Crime Watch program, receiving $1,000 for their efforts.
Long before deeming the transaction fraudulent, Lone Star Title had been having trouble with their supposed seller. For one thing, they found it challenging to connect with the individual via phone. “This was very unusual because our voice messages usually get a call back, but in this transaction, the seller wouldn’t call back,” said Smith and Fernandez. “She only communicated through emails, including with her own agent!”
However, a lack of communication was the tip of the iceberg. From the beginning, the transaction raised numerous questions. As a vacant lot, the property was assessed to have a low tax value. Yet at the same time, it carried several liens – including one for a substantial amount of $15 million. Additionally, the Deed of Trust for this lien revealed that the seller had used the property as collateral for an equipment loan. Smith and Fernandez indicated that several other notes for equipment loans existed and were connected to the $15 million loan.
The agents thankfully recognized several of the entities listed as the note’s borrower, as Lone Star Title Insurance had done business with them in the past. Because of this connection, Smith and Fernandez were able to speak directly to their point of contact. They confirmed that his wife’s name was the same as their seller’s, that she owned the property in question, and that the property had been given as collateral for the equipment loan.
While all of this checked out, other aspects of the transaction did not. The two agents determined, for instance, that the wife of their contact had an email address that did not match what they had on file. Perhaps most importantly, they discovered that her property was not actually listed for sale. The supposed seller became pushy when later confronted by these facts. She also behaved suspiciously by not wanting to go to the title company to sign and floating the idea of getting their own notary. At this point, Smith and Fernandez determined they had seen enough. They stopped the transaction from going forward and began informing all relevant parties of what had occurred.
“There is a certain feeling of satisfaction when you [help] stop a fraudulent transaction from happening,” said Smith and Fernandez, reflecting on the experience. “[We were] proud that this fraudster couldn’t get one by us.” This perspective is reflected in the larger culture of Lone Star Title Insurance, which has invested significantly in education to ensure that agents are adequately equipped to detect and prevent fraud. Yet as Smith and Fernandez pointed out, cutting down on fraud in the title insurance industry requires a broader approach. All industry stakeholders must come together to stop bad actors and lower the cost of claims. “Programs like Alliant National’s that tackle fraud prevention are both helpful and necessary for the protection of the title agent and the client,” they said.
In short, these programs act as an additional incentive for agents to remain watchful throughout the lifecycle of each transaction, which, according to Smith and Fernandez, can make all the difference in the world. “The only way to guard against fraud is to stay vigilant, ask questions, and always trust your ‘gut,’” they said. “Don’t ignore [any] red flags – or pink ones for that matter!”
By staying vigilant, Smith and Fernandez exemplified what the title industry can be at its best. It is a critical vanguard that protects property rights and makes a positive and tangible difference in the lives of its customers. “The agents and the actual owners of the property were very surprised and grateful that we had paid close attention to what was happening on the seller’s side of this transaction,” they said, echoing this sentiment.
Are you an Alliant National agent that has stopped a fraudulent transaction from moving forward? Learn more about our Crime Watch program!
After experiencing sustained growth, many businesses will begin to think about expansion. But while moving into new markets can be an exciting prospect, success often hinges on rigorous planning. Here, we will examine how market research is an important part of this process and how you can develop your own. Let’s jump in.
Market research is key to successful expansion
Navigating business expansion can sometimes resemble trying to pick your way through a thick forest. The trail can feel uncertain and unpredictable where one wrong step could trip you up. Think of market research as a light that illuminates the best path forward. It deepens understanding of potential customers and leads to more informed decision-making. Moreover, it reduces risk, enables the creation of better products and services, and shores up the long-term health of your brand.
The challenge of getting started
Despite its benefits, conducting marketing research can seem like a tall order, especially if you’ve never done it before. All too often, this leads to companies commissioning a report by a third party, which can be quite costly. Depending on the research, the cost can range at least $15,000 – $25,000 a pop.[i] This can be an unnecessary expense, especially as it’s possible to gather a lot of this information on your own.
A deeper dive
So, how do you start a market research report? Begin by sketching out your goals and objectives. Then outline the contours of your target market using these categories:
Market demand for title insurance
Qualitative and quantitative nature of the customer base
Competitor analysis
Regulatory environment (only if different from your current environment)
Competitive advantages you bring to the table
Any barriers that will prevent you from entering the market
Secondary research
After you have this framework, add additional detail by consulting secondary research sources. Fill out the market demand and customer base sections of your report by consulting:
Title industry reports
Government databases
Housing, population and employment trends
Next, learn more about your competitors by following these steps:
Search online for competitors who serve the target market.
Look at business directories and your local land title associations for additional information.
Then, see what your competitors are doing to market their products and services by looking at:
Their website
Social media channels
Review sites
SEO rankings
Any available advertising
Pair this with information on your competitors’ pricing, services and customer base.
In working through this exercise, a better picture of competing organizations will come into focus. The last step is then to populate the sections on your competitive advantages and barriers to entry. Perhaps one of the best tools to use here is what’s known as a “SWOT analysis.” Here’s what that requires you to look at and flesh out:
Strengths: What are you doing right and/or well.
Weaknesses: The potential weak points within your organization.
Opportunities: The opportunities or openings in the market of which you can take advantage.
Threats: What could threaten your ability to enter a new market.
Next steps
Armed with a better understanding of the market, your competitors and how they stack up against your organization’s strengths, weaknesses and capabilities, you can build better offers for your products and market them in a way that connects and converts. Don’t stop with just market research, though. Use this document as the basis for creating a strategic plan, a marketing and sales strategy and even guidance for how your organization can align resources with short- and long-term goals. Combined, these various assets will position you to not only enter your target market but hit the ground running.
