Starting on Tuesday, May 21, REALTORS® and other real estate agents will no longer have the ability to flag a listing on MLSPIN.com, which is the multiple listing service that serves the Pioneer Valley and most of the state.
Flagging a listing allowed subscribers to switch a listing from ACT to a red ACT within 24 hours of a fully executed offer to purchase a home. This is so that we could continue to market the home to consumers and accept back-up offers, while indicating to other agents that an offer has been accepted. A fully executed offer means that the buyer and seller have signed an offer and an initial deposit has been exchanged. The other option was to change the status of a listing with an accepted offer as “UAG”, which indicates an “under agreement” status that removes a listing from consumer websites.
When MLSPIN announced the change back in March, they stated their reasons for removing the flagged status option was due to abuse:
“This change is being made to address the growing frustration of our customers who continually experience difficulties trying to show these listings, only to find out that the listings really aren’t available. It seems a large number of brokers are using ACT with a Flag as a “staging status” between ACT and UAG on every listing. This unfortunately dilutes the Active inventory with properties that are simply not available.”
Replacing the flagged ACT status will be a new “contingent” status (CTG), according to MLSPIN. This will take place in the next few months. The new CTG status will allow real estate agents to keep a listing active for back-up showings, while allowing the consumer to see that an offer has been accepted. The MLS has listed six criteria that a listing can be set as CTG: home inspections, attorney review, appraisal, financing, third-party approval (like bank approval for short sales), and a pending purchase and sale agreement.
Until the CTG status is implemented, all listings with a red ACT will be switched to the UAG status.
Flagging a listing as ACT with a kick-out clause or right of first-refusal will still be allowed. Such a status is indicated by a red ACT with a stopwatch. This means that an offer has been accepted, but an opportunity for a consumer to purchase a home still exists due to an outstanding contingency. This could be due to the fact that the buyer needs to sell their existing home prior to closing on a new one, for example. A kick-out clause allows the seller to sell their home to another buyer who doesn’t have a house to sell. The buyer can be “kicked-out” if they can’t find alternative financing within a certain time frame.
If you are planning on buying or selling a home in the Pioneer Valley of western Massachusetts, make your first call to Michael Seward at 413-531-7129 or email email@example.com.