Time after time I have come across Short Sale Listings which read as "Active" though when calling into the listing agent I discover that the seller has accepted an offer, but the listing agent still has the property as "Active."  From my perspective this is incorrect and a major change or educational email needs to be sent out to everyone regarding this matter.

Dear listing agent: Once your Seller has accepted an offer, whether a Short Sale or not, you have 48 hours to change the status of your listing from "Active" to "Pending or Backup Offer."  Even though the bank still has to agree to the terms of the Short Sale offer, you have an accepted offer agreed to by two parties one being the seller and the other a buyer.

From my conversations with our local MLS department they have informed me that a listing agent who has an accepted offer must make a change to identify the "true" status of the property.  They have informed me that if the listing agent wishes to continue generating offers for their Short Sale listing, they then should change the status to a "Backup Offer."

This really does makes sense to me for it will present a true picture as to the status of the property, while informing interested agents of the possibility of their offer being considered.  

 
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10 Comments on Short Sales Status: To keep "Active" or not?

JUL
13
2009
759,096 Points 13 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp

We are fighting about this here too. I think if you have an offer in it should be either accepted or rejected in a timely manner. By staying active the banks are playing a high bidder game
3:13pm • #1
878,837 Points 75 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

There are far too many Realtors that don't know what the hell they are doing when it comes to short sales and that's the problem!
3:14pm • #2
126,594 Points Attended Rain Camp

Absolutely right Glenn.  The status is under contract when both parties (buyer and seller) have signed the agreement.  In order for the bank to review the offer it must have the ratified date on the contract.  The contract, then, is ratified subject to third party approval.

Ratified contract.  Period.

I suspect that many agents leave the property listed as active to garner possible buyers.  What do you think?
3:14pm • #3
1,950,109 Points 478 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

This is just one of the irritating little details of trying to sell short sales. 

Of course the listing should show "under contract" or "Cont/NoKo", or what ever applies in the particular MLS.

When to deposit the buyers EM check is another thing.

 
3:17pm • #4
170,555 Points 2 Featured Posts

Glenn - I feel that there is real intent by the banks to continue to leave the home status as available in order to generate more offers.  The seller may have accepted the offer, but banks may take weeks before they will accept an offer.  During that time, they are interested in generating any additional offers they can.  If the status is changed to pending, or backup offer, I think it will turn away potential buyers.  Do I think this is the right thing to do, absolutely not!
3:17pm • #5
980,857 Points 114 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

This has been a sore spot for many agents, thanks for posting.  The property is technology active if the bank is just sitting on it, and not responding.  We don't have a status change for this 'in limbo' status (should be LIM -- designating the in LIMBO status).  What is becoming prevelant is that listing agent (the courteous one) will write:  Offers have been accepted by seller, and being review by bank.

This is posted in the RMLS agent section, and it saves agents a lot of time, and frustration.
3:24pm • #6
520,370 Points 25 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Glenn oh you are soooo right.  I ran into one this past weekend and the buyers really liked it and wanted to put in an offer.  The agent had told them there were multiple offers in on the property but, never said any were accepted.  Then when I called and asked about putting in an offer "oh that one is under contract"  It is still marked Active in the MLS and should be changed to Pending or if nothing else Pending accepting  back up offers.   That way we know that they have a contract.  I think they are just trying to get buyers for themselves. 

 
3:35pm • #7
233,535 Points 13 Featured Posts Outside Blog

It really stinks all the way around.  MLS says to mark it contingent, but you and your seller think it should be active.  I personally make sure that I only take 1 offer and I work it like aa regular contract.  I get the best offer even having my seller counter to get the best price, and then mark it contingent. 
3:47pm • #8
289,283 Points 2 Featured Posts

Hi Dan,  I believe there are threereasons: 1.) Their lack of knowledge regarding MLS Rules and Regulations; 2.) Their misunderstanding of what an "accepted offer really is"; and 3.) The fear of not having another Buyer in line who would step in-in the event the first position Buyer step away due to the very long process for short sales.

That is what I believe are the reasons why.
3:50pm • #9
442,381 Points 4 Featured Posts Localism Sponsor Outside Blog Hit Router Called Shot Master

Glenn, Our MLS has an APSS status, Active Pending Short Sale.  If it is under offer it is under offer.  If they don't represent it right the integrity of the MLS will be lost.
11:53pm • #10


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