Do you want to know the status of the house you are planning to show???

By
Real Estate Agent with RE/MAX Advantage

There are several things to check under STATUS in our MLS that covers most of the state of Arkansas.

  1. Active
  2. Under contract
  3. Under contract before listing
  4. TBU   for Take Backup Offers
  5. Sold
  6. Price Change
  7. Back on Market
  8. Rented
  9. ESCAPE CLAUSE
  10. Withdrawn

These options should be used and used truthfully.  If we are going to show property, we don't need to have to hunt down the listing agent to make sure there are no hidden contracts.  It seems to be common in our area to hide the ones that should be marked "escape clause".  They will still show up as "active" in the MLS data and if we see the mark "escape clause" we know there is something that we need to check on.

Escape clause means that someone has a contingency offer on a house.  The contingency is usually that they have to sell their house to buy or any thing other than financing.  The listing agent who allows the contingency contract to be put on the house wants it to be "secret" because if the agents know it, they won't show it! 

What kind of thinking is this????  And how is that fair to me????  They want to trick me and other agents into showing the house????  Then if we work all weekend trying to sell it to a buyer who wants to buy that weekend we find out that there is a contract???? 

The proper thing to do is check "escape clause" because that tells me that there is something there but it can possibly be broken.  The contract makes  a fairly long process of removing the escape clause and if the buyer is so willing, he can remove the contingency of selling his house but not the one of financing and he could hold onto the house, cause the homeowner to lose the new buyer, and still not be able to buy it because he can't get financing! 

Are you listing agents who allow the contingency clause fully explaining this to the seller.  I worry that you are saying instead that "We'll just keep this in our files and the agents will still show your house because they won't know there is a contingency clause.  If we get another offer, we'll ask the buyer to remove the contingency." 

That brings up the question of whether the selling agent, who often is the buyer's representative only, has the responsibility to tell that buyer what he can do.  It may be dirty pool but if the buyer REALLY wants that house and REALLY wants to hold onto it, should the agent tell him how to hold onto it? All that buyer possibly has to do is remove the contingency of selling his house and if he can't get financing he still does not have to buy it and can probably get any earnest money returned. 

And this would be after they assured the poor seller that he can still sell his house because agents will still show it.  That is another good reason why I don't want to work around contingencies BUT I want to make my own decisions about showing and not be TRICKED into showing it.

Then there is the listing agent who tells the seller that when he gets another offer, the first buyer will remove his contingency and proceed to buy it.  They are USING the second buyer to urge the first buyer to act!  That is also what I call "dirty pool".  We all need to be aware of where those contingency contracts are and they need to be marked as such in our MLS. 

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Location:
Arkansas
Tags:
arkansas real estate
listers
sellers
agents
contingency contracts

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Rainer
10,839
Katherine Anderson
Managing Broker
Coldwell Banker Hobin Realty, LLC - Hampton & Rye, NH, USA
Barbara:  What you described here is now allowed here in NH.  Our MLS prohibits.  Listings that go pending (even with a contingency) are required to be put into the MLS with 48 hours of the contract otherwise the agent faces being fined.  Doesn't your MLS have these types of rules?  
March 11, 2008 10:07 AM
Rainer
10,839
Katherine Anderson
Managing Broker
Coldwell Banker Hobin Realty, LLC - Hampton & Rye, NH, USA
oops, I meant it's NOT ALLOWED
March 11, 2008 10:14 AM
Rainmaker
713,485
Barbara S. Duncan
CRS, GRI, e-PRO, Searcy AR
RE/MAX Advantage
That is the way it should be here but I don't know of any fines ever being given.  We probably have something to that effect but perhaps is ignored.  They SHOULD be put in.  And you know what, gossip gets out about the listing and gossip is worse than fact.  Truth should be told up front.  Thanks for your input.
March 11, 2008 10:16 AM
Rainmaker
713,485
Barbara S. Duncan
CRS, GRI, e-PRO, Searcy AR
RE/MAX Advantage
I knew what you meant.  Thanks.
March 11, 2008 10:17 AM
Rainer
10,839
Katherine Anderson
Managing Broker
Coldwell Banker Hobin Realty, LLC - Hampton & Rye, NH, USA
Well, I guess if I were in your position I'd just make it a habit to ask the direct question before each showing scheduled.  Good luck.
March 11, 2008 10:24 AM
Rainer
139,370
Harold "Hal" Place
A1 Connection Realty, Inc.

Listing information should be kept as current as possible. Sometimes the changed status information is so recent that MLS isn't updated before additional showings are scheduled. However, the listing Office should have the information and disseminate it to an Agent when they call to schedule and or arrange subsequent showings.

Life isn't perfect, but we should strive to make it as close to as we can.

March 11, 2008 10:31 AM
Rainer
32,776
Larry DeGroat
ABR, CRS, e-PRO, GRI in Searcy
Realty Professionals, Inc.
I know what you mean Barbara, we have been dealing with that for several years now.
March 11, 2008 02:49 PM
Rainmaker
446,004
Vickie McCartney
Broker, Real Estate Agent Owensboro KY
Maverick Realty
We owe it to each seller to imput the correct information on a timely basis.
March 11, 2008 02:59 PM
Rainmaker
713,485
Barbara S. Duncan
CRS, GRI, e-PRO, Searcy AR
RE/MAX Advantage

Harold, this example was for deliberate hiding, not time shortage.  The intent is for it not to show. Thanks for comments!

Larry, you and I are usually on the same wave length.

Vicki, it is a definite "do unto others"  type situation. The agents who do this would probably howl the loudest if it was done to them. 

March 11, 2008 03:59 PM
Rainmaker
310,864
James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes
When Looking to Buy or Sell - Make the Right Move
Real Living | At Home
Escape Clause !!!  Oh I dont like the sound of that!  We use Contract/ Contingent...
March 12, 2008 03:00 PM
Rainmaker
713,485
Barbara S. Duncan
CRS, GRI, e-PRO, Searcy AR
RE/MAX Advantage
James, we in Arkansas have a tough time with big words like contingency.  So they just said Escape Clause. Perhaps that's why everyone hides their contracts.  Do you actually use the status?  By the way, no one has read the blog so they'll not feel guilty.
March 12, 2008 03:17 PM
Ambassador
1,529,884
Gary Woltal
Assoc. Broker Realtor SFR Dallas Ft. Worth
Keller Williams Realty
Barbara, in our area I got stuck between Contingency and Kick Out lately as they seemed the same here to me.
March 12, 2008 03:32 PM
Rainmaker
713,485
Barbara S. Duncan
CRS, GRI, e-PRO, Searcy AR
RE/MAX Advantage
Gary, we don't have a term "kick out" but it sounds sorta Arkansawyer!  We may need it.
March 12, 2008 03:47 PM
Anonymous #14
Anonymous
Anonymous

Barbara,

You said it very well, I totally agree!

March 13, 2008 03:15 PM
Anonymous
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Rainmaker
713,485

Barbara S. Duncan

CRS, GRI, e-PRO, Searcy AR
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