New data from the National Association of Realtors (NAR), listing views in suburban zip codes jumped 13% between April and May 2020. The data indicates that the national market has slowed compared to 2019 but that suburban and rural areas are slowing less by comparison.

The report shows that out of the almost 20,000 zip codes, suburban codes reflected a median improvement of 404 spots in rankings and rural zip codes jumped 846 spots overall.

NAR Economic Data Analyst are quoted as saying, “May data shows that rural and suburban zip codes have been more resilient to this slowdown compared to urban areas. Time on market in rural and suburban areas has slowed, increasing by 25 and 30 percent, respectively, while urban zip codes have slowed even more, increasing time on market by 35 percent.”

The bottom line here is that suburban and rural markets are seeing relatively stronger trends in both views per property and days on market. Based on the spikes in May, these areas are outpacing urban markets by a big margin.

What recovery data shows

NAR found some striking differences between buyers and sellers in urban and small-town settings in their 2020 Market Recovery Survey. Key takeaways from this study include:

Small town and rural markets were more likely to report that no buyers had paused transactions. They were also more likely to report a stronger return of buyers. At the same time, more respondents reported less urgency to purchase a home in urban areas than in suburban or small town and rural areas.

Out of the group who reported having buyers shift their intended location, 47 percent said that their buyers want to purchase in suburbs, 39 percent cited rural area, and 25 percent cited small town.

Where this puts buyers and investors

As the trend in interest moves away from urban centers, real estate buyers and investors need to consider where they are heading. It’s clear that buyers and renters are being forced to consider remote work options more and more, so they are rethinking the need to reside in the more expensive urban markets.

For these reasons, the draw to secondary and tertiary real estate markets for the coming horizon in real estate is very appealing. Many will be looking at reduced property prices, lower taxes, and increased demand. And while the impact of the Coronavirus keeps people focused on home living and new job options, this is a perfect time for investors to take stock of their markets and look at the opportunities that this this trend is creating.

Keeping you on top of real estate transactions

Are you looking to know how new rules and regulations could impact your next home purchase or real estate investment? Would you like to understand the protections you will need in the new real estate environment? And what about the proper insurance coverage? Ideal Title Agency is glad to help you navigate these questions. We continue to offer advice and broad context for real estate agents, buyers and sellers. Contact us at info@idealtitleagency.com or check us out on Facebook: facebook.com/idealtitle .

Unfortunately, the guidelines are a little different depending on where you live, but many of the rules are almost universal, and probably a good idea in light of the potential for spreading COVID-19. 

We suggest that you check your local public health regulations, the real estate association and of course, adopt common sense to comply with social distancing and personal safety guidelines.

There are a couple of new items to work around; you will have to schedule showings and you may be asked to sign waivers before viewing. Of course, there’s the standard “masking-up” procedure for all involved, as well as hitting the hand sanitizer and possibly wearing booties and/or gloves.

Here are a Few of the New Realities for Home Buyers and Sellers

Masks and hand sanitizer are a regular part of any home buying trip, but most of us pretty well expect that at this point. What’s not expected is the new viewing conventions.

In many places the buyers are only entering the home one at a time with the agent. They often wear gloves and might have sanitizing wipes at hand in case they need to move anything.

Another new convention is signing documents concerning your health before going on a home tour. You may be asked to sign a disclosure document stating that you don’t have connection to anyone with symptoms of COVID-19 infection. This applies to both parties – buyer and seller or agents.

It follows that closings may be handled in a very similar way in most places, trying to minimize the need for contact and having as few people present in a room at once as possible. This leads to situations where a husband may be the first signer who enters alone to sign with the title agent and followed separately by their wife or partner also signing alone.

Again, expect to wear masks during closing and it’s a good idea to bring your own pens, however minor that may seem. It’s all about keeping distance and lowering contact.

Sales Require a New Approach too.

As an agent, this new situation can make it tough to entice clients and make them feel comfortable with the entire process. 

Here’s where a little ingenuity goes a long way. Agents that have seen success in the current market are resorting to alternatives to showing in person wherever possible.

For instance, many agents are using devices like 3d cameras to create virtual walk throughs of their listings giving things a much more personal and engaging feel. There are also video vignettes that work well on platforms like Facebook and Instagram. These are powerful tools that agents need to be on top of to generate interest.

Of course, good photos and an easy to navigate gallery of a listing is a good place to start.

And forget about trying to time out marketing. Those rules went out the window with prolonged quarantines. Everyone is almost always available. So, for instance, where agents used to hold off posting a listing before a major holiday, that’s no longer applicable. Data shows that listings posted on Saturdays or holidays can now mean quick replies and immediate exposure that can result in sales.

Is the Open House Gone Forever?

Open houses have long been a method used by agents to get as many people into a showing as possible. They are still allowed in some areas but appear to break the rules in others. 

Agents who have held Open Houses since the initial shelter-in-place orders have been lifted for certain areas say they have seen turnout, though not like it used to be. If you live in a large city that’s had significant numbers hit by COVID-19, open houses are not being held. It appears the best option may be having completely “scheduled” open houses where everyone sees the property, but only during their viewing time.

So, while the rules of home buying and selling have changed pretty dramatically, it’s still an essential process. As a buyer or seller, you just may need to be a little more flexible and, in some cases, very patient.

For more about the changes taking place in real estate, or help with how to handle your next transaction, contact Ideal Title Agency by email at info@idealtitleagency.com or see their posts at facebook.com/idealtitle .

As with the rest of the home buying process, title insurance can be difficult to comprehend. To complicate matters, the topic is often surrounded by misconceptions that keep home buyers from recognizing its importance. To help you get a better understanding of what title insurance is and how it protects your property rights, let’s analyze eight common misconceptions:

Title insurance offers only minimal protection.

When you purchase a home, you receive “title” to the property. Title is your legal right to own it. Early in the home buying process, a title search is conducted to review the history of the property and uncover any issues that could limit your right to ownership. Even after the most meticulous search of public records, there can be hidden title defects, such as tax liens, forged signatures, claims by ex-spouses and recording errors. These title defects can remain undiscovered for months or even years after you purchase the home.

There is only one type of title insurance.

There are two types of title insurance policies: an owner’s policy and a loan policy. An owner’s policy protects you, the property owner, against loss or damage in the event there is a covered title defect in your right of ownership to the property. If you’re obtaining a mortgage loan to purchase your home, a mortgage lender will likely require that you purchase a loan policy, also known as a lender’s policy. This type of policy protects the lender’s interest in the property until the mortgage loan is paid in full. The loan policy provides no coverage to the homeowner.

You can opt for more enhanced coverage within your owner’s policy. Standard coverage protects you against financial loss and related legal expenses for common title defects that occurred prior to the date of the title insurance policy. Enhanced coverage includes all the standard coverages, plus even more for maximum protection, some of which protect against matters that may transpire after the date of the policy.

Title insurance requires a monthly or annual premium.

Unlike most insurance policies, there is no monthly or annual premium. Title insurance is a one-time cost you pay at closing when you purchase or refinance real property.

Title insurance is expensive.

The one-time premium for an owner’s title policy is based on the purchase price of your home and accounts for only a small percentage of your closing costs. Coverage is provided for as long as you and your heirs own the property. When you add up the benefits compared to the costs, an owner’s policy of title insurance is quite reasonable.

Paying all cash eliminates the need for title insurance.

An all-cash purchase eliminates the requirement of a mortgage loan and therefore eliminates the need for lender’s title insurance. However, an all-cash transaction does not eliminate the risk posed by unknown title defects. An owner’s policy protects you against possible loss or damage from a covered title defect.

Homeowner’s insurance and title insurance offer the same protection.

Title insurance protects a buyer’s right to ownership and a lender’s investment. On the other hand, homeowner’s insurance is a policy that protects you against potential losses or damage you can experience to the structure of your home or its contents during an insurable incident.

Home buyers do not get to choose the title company.

Under the terms of the Real Estate Settlement Procedures Act (RESPA), the buyer generally has the right to choose the title company when the property is purchased with the assistance of a federally related mortgage loan. The property seller may not require the buyer to purchase title insurance from any specific title company, unless it has been instructed that the seller will pay for both the owner’s and loan policies associated with the real estate transaction.

I’ll never need to use title insurance.

According to the American Land Title Association, title insurance policyholders have filed over 730,600 claims to date.* In 2018, the title industry spent over $615 million* defending the property rights of its policyholders and compensating their losses due to covered title defects.

With so many misconceptions about title insurance, finding a team of professionals that you can trust is imperative. At Old Republic Title, we are committed to providing quality service and being there for you if your property rights are threatened. To learn more about title insurance and working with Ideal Title Agency, contact us.

This advertising offers a brief description of insurance coverages, products and services and is meant for informational purposes only. Actual coverages may vary by state, locality, and the type of policy purchased. You may not be eligible for all of the insurance products, coverages or services described in this advertising. For exact terms, conditions, exclusions, and limitations, please contact an Ideal Title Agency representative.