In June 2007, TREND eliminated the Active Under Contract, or A/C, status
and created contingency indicators in order to respond to member concerns that all "available" listings get higher visibility. The goal was to better and more accurately represent the true availability or status of a listing, including those already under contract.
describe the nature of the contingency when an agreement of sale is in place. Listings that get these contingencies are still considered as having Active status. TREND identified the most common contingencies and created these contingency indicators:
- ACT-A - Attorney Review (New Jersey only)
- ACT-E - Escape Clause (also known as Kickout Clause)
- ACT-F - First Right of Refusal
- ACT-O - Other situations where a seller requests that showings continue
Any listing in the Active status - even with a contingency - should be available to show and the seller should still be seeking offers.
Improving the Accuracy
One year later, the number of listings with contingency indicators has dropped to 1,020. This is about half of the number of listings which would have been listed as A/C, if that status still existed today. While eliminating the A/C status has improved the accuracy of listing statuses in MLS Blue, recent research indicates some members still struggle with the appropriate use of indicators.
ACT-O Confuses the Effort
A recent review of Active-O listings revealed that as many as 50 percent should actually be pending.
Of the 1,020 listings on May 5, 2008, that had a contingency indicator, nearly 600 were ACT-O. TREND audits listings with this status every 14 days to see if the property is in fact, available to be shown. During a recent review of ACT-O listings, TREND discovered that as many as 50
percent should actually be Pending.
Many of these listings were simply awaiting mortgage approval or satisfactory home inspections. Mortgage and home inspection are not contingency indicators in TREND. These two activities are formalities in the sale process and most usually lead directly to settlement. Therefore, listings with these contingencies, which typically can no longer be shown, are Pending.
However, if the seller had requested that a listing with this contingency continue to be shown, the listing may be properly classified as ACT-O. During the same review, it was also determined that 20 percent of the ACT-O listings should actually be Settled or Withdrawn. MLS Blue should have settled many of these listings automatically but didn't. TREND is putting measures in place to ensure these listings are corrected and appropriately managed.
Contract Determines Contingency
Remember that the information in the agreement of sale ultimately determines the status of your listing in MLS Blue.
You are prompted to answer questions about the terms of the agreement of sale and whether showings on the property can continue. Your answers to these questions determines the appropriate status
and, if necessary, the indicator.
Room for Improvement
While the use of indicators has improved the accuracy of statuses in MLS Blue, TREND continues to monitor the use of ACT-O to ensure the accuracy of listing statuses.
Education is the key to this process. Through education and compliance efforts, as well as putting the appropriate management tools in place, TREND's goal is to accurately represent the availability and status of all listings in MLS Blue.