Flex Quick Tip
February 28, 2013
Short Sales and Status Changes in the MLS

Many MLS subscribers run into a situation they’re not sure how to properly manage when listing short sales. As it seems with many properties that require the additional bank approval step, there can be a delay in receiving final acceptance. With this delay many members feel they should continue to market the property “Active” in MLS as it is in the best interest of the seller and Bank. However, Metro MLS, as with most MLSs nationally, require subscribers to indicate an accepted offer by changing the status of the listing from Active to Active W/Offer or Pending, even though the bank has not delivered final acceptance. This reminder of ensuring compliance with MLS Policy was supported by a recent Bank of America update to all Agents who represent Short Sale Properties. Included in the update was:

“We recognize that listing status classifications may differ by locale and are subject to local or regional MLS requirements. Brokers should follow MLS requirements at all times. MLS statuses such as Back Up, Contingent or Pending may be acceptable. Ensuring that the listing was properly represented and marketed on the MLS will help you show that the property was on the open market.”

To view Bank of America’s update in its entirety please view: https://agentresources.bankofamerica.com/ss_news_13FEB11

For all Metro MLS members, Short Sales follow the same status changes as all other listings.

From the MLS Procedures Manual:

  1. New Listings - When you enter a new listing it will appear in the Hotsheet program. Active listings must be shown in a cooperative manner. New listings require a new listing contract. You cannot enter a listing as new with an amendment.
  2. Active W/Offer - Indicates that the property has an accepted offer. However, the listing broker is continuing to show the property and accept secondary offers. These listings will continue to appear in active searches.
  3. Pending Listings - The listing has an accepted offer. The listing broker is not required to continue showings.
  4. Expired Listings - The listing contract has been canceled by amendment to the listing contract or has expired. Listings will automatically expire at midnight of their expiration date. Only the MLS can expire prior to its original contract expiration date.
  5. Withdrawn Listings - The listing broker has a valid listing contract however, the seller(s) is no longer wants the property marketed through the MLS. Only the MLS can withdraw a listing.
  6. Sold Listings - The property has sold and closed. Properties must be reported as sold within 10 days of closing or sanctions may be levied.
  7. Extended Listings - The seller(s) signed an amendment to the listing contract extending the expiration date.

Accepted Offers

Accepted offers must be reported within 48 hours as either Active w/Offer (has an offer but the seller is still allowing showings of the property and is taking secondary offers) or Pending (has an offer and the seller is no longer showing the property) unless there is a “Home Sale Contingency”. Failure to report accepted offers may result in a $10 per day sanction.

Any questions, please call the Help Desk at 414.778.5450.

Or e-mail support@metromls.com. You may also follow our updates at http://twitter.com/metromls.