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South Florida and Nationwide Real Estate News

The Definitive Guide to MLS Listing Status Codes and What They Mean

Posted on March 16, 2011 | Leave a comment

There are 10 MLS Listing Status Codes in effect. These will vary from region to region in the United States, so check with your local Multiple Listing Service (MLS) for the full list for your region, however, this list is a great starting point to learn about the various status codes for real estate, whether it’s RE1 (Single Family), RE2 (Condo, Villa, Townhouse), or RNT (Residential Rental) – even COM (Improved Commercial & Industrial) uses these same MLS status codes.

A: Active-Available

The seller/lessor is soliciting offers through the MLS. No offer (with or without Contingencies) has been accepted. The days on market count continues during this period.

B: Backup Contract

The seller/lessor is soliciting back-up offer(s) through the MLS. The seller/lessor has accepted a contingent offer. A second offer would be a back-up offer and would become the accepted offer only if and when the first agreement is canceled.

C: Canceled

The seller/lessor is not soliciting offers through the MLS. The seller/lessor and broker have canceled the existing listing contract.

CS: Closed Sale

The seller is not soliciting offers through the MLS. The escrow has closed.

    PS: Pending Sale

    This status means that the home is under contract and the buyer can no longer walk out of the contract on the building inspection results. While pending, a home will no longer be shown. Days on market count is suspended during this period. If the listing is reactivated if the contract falls apart, all of the days on market to date are picked up and applied to the listing.

    Q: Terminated

    Used when the listing agreement between the owner and the listing agent is terminated prior to the listing expiration date.

    R: Rented

    The lessor is not soliciting offers through the MLS. A lease agreement is in effect.

    T: Temporarily Off the Market

    This status is to be used on a short term basis for a home listing that needs to out of the MLS briefly. This could be due to a need for a repair or because the seller has some improvements that are needed based on feedback from showing agents. The home will not be shown during this period. Days on market count is suspended during this period. It resumes when the home listing is activated again.

    W: Withdrawn

    The Seller/Lessor is not soliciting offers through the MLS. The property is not available for showing but the listing contract between the Seller/Lessor and the Broker remains in effect until its expiration date.

    X: Expired

    The Seller/Lessor is not soliciting offers through the MLS. The time frame of the existing listing contract has run out.

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    Barack Obama and Real Estate: What Changes are Ahead in 2009?

    Posted on January 26, 2009 | 2 Comments

    There’s been some big changes in the United States government, culminating in the election of our new president Barack Obama. But what does our new leader mean for the real estate industry? Is it status quo or are there big changes coming? Is President Obama a good thing for the real estate industry or a bad thing? Who benefits the most from these governmental changes: real estate practitioners, buyers, seller, investors, or developers?

    An important note to be aware of is that not only did a Democrat win the general presidential election but there were also major gains by Democrats in the United States House of Representatives and Senate races.

    “We’re in a good place,” says National Association of Realtors (NAR) President Charles McMillan. “Realtors are excited by this historic election and stand ready to work with our new president and the new Congress on issues that are at the heart of the American dream of homeownership. There is no partisan divide when it comes to homeownership, strong communities, affordable health insurance, and strong commercial real estate markets. We see much opportunity as well as challenge in this new environment.”

    It is clear that the National Association of Realtors had their preferred candidates, in fact more than 400 candidates were provided more than $4 million dollars in monetary support. Of these candidates, 90% won their respective elections. More than half of Realtors Political Action Committee (RPAC) funds went to Democrats. However, RPAC Chairman Larry Edwards was quick to point out that “ours is the most bipartisan PAC in the country.”

    Apart from this $4 million to selected candidates, another several million went to 74 candidates with the NAR Opportunity Race Program and 6 candidates with the Independent Expenditure program – in all, totaling an estimated $16 million dollars in the two-year cycle ending with the November 4th elections. NAR President Charles McMillan commented on these elections that “thanks to the success of RPAC and the attraction of our issues in both parties, we are well positioned to ensure the best environment for real estate.”

    If a candidate is supported by the NAR Opportunity Race Program then that candidate will have education and rock-the-vote type promotional materials sent out for them by snail mail  in their own district. If a candidate is supported via the Independent Expenditure program then this candidate will have radio, television, and direct mail advertisements sent to the general public in their district focusing on real estate issues relevant to the industry.

    Some of the NAR supported winners include:

    • Rep. Paul Kanjorski (Democrat – Pennsylvania) - Authored the Community Choice in Real Estate legislation and has been a supporter of NAR’s effort to take (and keep) banks out of real estate.
    • Rep. Shelley Moore Capito (Republican – West Virginia) – Has assisted in the passing of FHA reform, expansion of homeownership opportunities for military veterans, and homebuyer tax credit. Member of the House Financial Services Committe that has been an advocate for small-business health insurance coverage backed by NAR.
    • Rep. Jerry McNerney (Democrat – California) – Advocated FHA reform, expansion of homeownership opportunities for veterans, and played a role to increase conforming loan limits.

    Analysts state that they believe that the Obama administration will focus on regulatory reform of the United States financial services industry. There’s going to be some major investigations going on as to what has to change in order to have proper regulation of mortgage and asset-backed securities. There’s going to be a major focus on exactly what changes need to be made to the two big government sponsored enterprises: Fannie Mae and Freddie Mac, also known as the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC), respectively. Some of the options for Fannie Mae and Freddie Mac include making them 100% private companies, folding them into the government or continuing with them but as public-private hybrids.

    Another economic stimulus package is likely in the works under the Barack Obama administration and in the U.S. Congress. Beyond this, I know that NAR is pushing for permanent conforming high-cost loan limits of $729,750 as well as eliminating the repayment requirement in the first-time homebuyer tax credit. NAR is also pushing for increased consumer protection with a permanent ban on any national banks going into real estate brokerage and management. NAR also wants to make sure that Wall Street banks use at least part of that $700 billion in bail-out money to have mortgage financing available at a reasonable cost to consumers.

    Congress will undoubtedly be pushing for infrastructure investment, increased environmental awareness, and health insurance reform.

    What’s your opinion on these elections – will these changes improve or sink the real estate market?

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    Beating the System: Getting Exclusive Deals and Networking to Success

    Posted on October 17, 2008 | 1 Comment

    When investing in real estate, whether you’re looking into residential investing or commercial investing, many times properties listed on the MLS (Multiple Listing Service) may not be ideal for you. Don’t get me wrong, you can find some great deals on there. But there’s going to be times you want something very exclusive. Maybe you’re looking into investing in luxury properties, which often don’t show up on the MLS due to privacy concerns. Or maybe you want to invest in commercial real estate which may not be listed because the owner doesn’t want customers to know he’s selling the business. This is why you need to have a top real estate agent on your team to get you those deals hot off the MLS – sometimes even before they appear.

    One of the snags of properties that are listed on the MLS – especially recently listed properties – is overly-inflated listing prices. When a seller is listing their property, the property owner is going to call multiple real estate agents and interview them. The agents will then visit the property that the owner is looking to sell and give the seller a round-about market value price that the property may sell for. Most agents are honest and will give a true market value on the home. There’s always going to be those agents that will quote a higher than market value price just to get the listing. When the seller hears this inflated price they may list with this agent with images of dollar bills dancing in their mind’s eye.

    If you’re selling your home, be aware that these agents quoting a higher than market value price for your home are hoping that your property can sell for that price out of sheer luck or they hope to eventually bring your listing price down eventually. This is why if you’re a seller, do not get distracted with dreams that your property will sell for much higher than market price. Obviously, not all real estate agents are built equal – some agents have better negotiation skills and some agents have better marketing skills. These skills will likely bring you a higher price. But if three agents have told you the value of your property is $200,000 and one agent comes by and says he can sell it for $400,000, think twice before listing with that agent.

    In order to beat the real estate system as a buyer, you need to establish relationships that net you the most exclusive investing opportunities possible. You need to have a real estate agent on your team and keep this agent interested in continuing in doing business with you on a long-term basis. This gives you massive opportunities for incredible real estate investing deals.

    Once you’ve established these relationships with real estate insiders, you’ll be getting a fair share of investment opportunities. A key point is that when you find yourself with a prime investment property on your lap, don’t just sit by, “run the numbers” a million times, and let time pass. If you see a great deal, close it. If it’s that great of a deal, you may not even want to negotiate or bargain with the owner, just lock the deal up with great terms (no contingencies) and offer list value or even slightly higher to make sure you get the deal. This is part of our Real Estate Startpoints – be quick to jump on prime investments when you find them.

    As we discussed in the article The Realtor Search: How to Find and Keep a Real Estate Agent, you need to concentrate your investment focus on a particular area and get a real estate agent that knows this area well. This allows you to jump on investment openings quickly, before other investors jump in before you. For example, a For Rent sign comes up on a great property. Call the owner up and see if the homeowner may be interested in selling that property to you. This almost always assures you of being the only person bidding on that property and submitting an offer – this gives you a huge negotation advantage if you’re the only person submitting purchase offers. Maybe the homeowner is an elderly person tired of managing the property and wants to retire in peace – this is a perfect chance to get a great deal. The point is to become an expert in your target investment area, as soon as a For Rent or For Sale sign comes up, you should be first in line to find out the details.

    In every career, networking and action are the keys to success – investing is not an exception. Networking is key because this is how you get those amazing “insider deals” that many people don’t know about but you get first crack at due to your connections. Action is essential because you need to act without hesitation if you find a great property – run the numbers and if it all looks good, then go for it. So many opportunities are lost due to inaction – in real estate investing and in life in general. Network yourself, take action, and take control of your financial future.

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