Marketing Your Title

By John L. Linnington, III, President, The Title Company of Jersey 
Months ago, we spoke about the importance of getting in the real estate game while rates were low and prices were still back at 2012 prices. Well, not much has changed except for the fact that more investors have jumped into the market and the inventory has shrunk. We also spoke about the number of bank-owned properties on the mainland and the opportunities in choosing the right brokerage. Many different factors enter into dealing with the secondary market including financing, contracting and marketing. The distressed market is not for the faint-hearted.
I have counseled many young people regarding getting into the “flip” market and have given them all fair warning. If you are going into this market, you will be faced with two very hard decisions. Firstly, will you be able to do the vast majority of the improvements to the property yourself or will you be sub-contracting most of the job? Do you have the tools in your truck to accomplish the task and do you know how to use them? Secondly, do you have fair and marketable title? The key word here is “marketable.” Numerous times, a title company of choice will accumulate a triage of proofs which will satisfy the underwriter and insure your title. This does not mean that the discrepancies of record are removed of record from the County’s Hall of Records. What this means is, “Will your title insurance provider work post-settlement to clear your title so that your buyer does not have a problem when he/she decides to sell the property?” This is paramount to any investor who chooses to buy and sell property “short term.” The reality shows on TV do not get into this type of non-glamour. Choose your title company wisely and do not be afraid to ask questions.
Numerous times, a seller may leave money at the settlement table to clear up a title issue, but many times, the money will lay in escrow for long periods of time. During these times, a lot of things can change. Heirs can pass away, banks can merge, environmental rules can change and, most importantly, property values can accelerate. This leads to more time, more work and tons of aggravation in a world where most title people pray to speak to a real live human resource and not a bot or a machine. 
The Rebound Continues 
In the spring, I reported that our title operation was up 22.5 percent in dollar volume and that units closed in 2017 over 2016. This is huge considering a five percent a year increase over a five-year period would be considered robust during any market recovery. 
Recently I sat with our Cape May County Clerk Rita Fulginiti to see if there would be a comparison between the Title Company of Jersey’s numbers year-to-date and those of the County of Cape May. Not surprisingly, the county’s numbers stood at 19.9 percent year-to-date July 2017 over July 2016. The Clerk’s Office receipted just over 19 million dollars and posted revenues of just over 3 million as of the end of July. These numbers were close enough to ours to show that the Cape May County real estate market continues to cruise at price points of 2012, which heralds a complete rebound of price somewhere near 2020, should it stay on track and the interest rates and the bond market stays relatively stable.
Now is time for my bold prediction for 2018. Where will the secondary market money be invested this coming year? Florida? The Caribbean? South Central? I think not. These areas have years of rebuilding in front of them after one of the most catastrophic weather seasons of all time. My guess as to where investment dollars will be spent is the greater Southwest and the great Northeast, primarily the Jersey Shore and New England. As I have said before, 25.1 percent of the national population is within a tank of gas from where you are reading this article. Let us see if the market dynamics change and keep people closer to home.
Call the Title Company of Jersey toll free at (855) 825-8485 or visit www.tcjonline.com.