The real estate industry is a dynamic and fast-paced industry with new listings, sales, expiries, etc. happening in real-time with real people. All of this beautiful motion would be chaotic without some level of organization which can help signal to REALTOR® members and consumers alike, the state of the current market at any given time so they can make the best decisions possible at the moment. One of the levers used to help in this regard is statuses in the MLS® system which represent the current state of a listing for the clear view of all REALTOR® members. Pending status is an internationally recognized standard for properties that are currently engaged with a buyer who has a conditional offer on the property. This status gives clarity to the pace of the real estate market in any given region. Let’s consider some of the ways this works.
Clarity out of confusionIn Alberta, the reporting of Conditional Sales, also known as pending sales in the MLS® system is mandatory upon the acceptance of a conditional offer by the seller. This mandate ensures that other REALTORS® and their clients can be assured of what properties have offers and which do not so they can make the best decision for their situation instead of feeling deceived when learning the status at some later stage of the process.
Savvy sellersWith the clarity that mandatory reporting of conditional sales provincially brings, a potential seller who is considering listing with a REALTOR® will have the ability through their market research to know the landscape they are competing with. By having a clear understanding of the total properties on the market, and the number of properties already under contract, the seller can gain a clarifying view of the pace of property activity, and get a better understanding of where their property may fit into that picture. Often properties will remain in a pending status for weeks while the buyer completes their due diligence so this differentiation between active competition and pending properties can be invaluable to a seller.
Better Buyer BaseBuyers who have the knowledge they need are better buyers. By having the assurance that the status of a listing is the true status of the listing, the buying public can make better decisions that match their specific situation. Transparency in the transaction process leads to less frustration and helps buyers understand their options, including the opportunity to work with their REALTOR® to write a backup offer on a property already pending. This full knowledge of the current situation also provides the seller with confidence that a buyer writing a backup offer has prior knowledge of their pending status, which leads to greater comfort in negotiating by both parties.
More Market DataREALTORS® love to bring the most and best data to their clients, so they can help them chart the best path to success. By having more data and surety of data integrity, real estate associations and boards can produce better and more accurate statistics. Statistics such as average time in pending status helps sellers know what to expect, the time between active and pending status, or time between pending status and sale status are also statistics invaluable to both buyers and sellers. The ability for a REALTOR® to bring that kind of value to the real estate transaction is good practice, and a window on the market conditions could mean the difference between “for sale” and “sold”!
REALTOR® members are always striving to provide the best experience for their clients, with honesty, clarity, and expertise, and the surety of listing status is one of those huge benefits to the marketplace. Clients demand the most up-to-date information on which to base their purchasing and selling decisions and REALTORS® love to provide it. The saying goes that you can never step into the same river twice, and the real estate market is the same so that the fast pace of market activity benefits greatly from the steady and expert hand of a REALTOR® to navigate.
Provincial Practice Advisor
Bryan has many years of experience in the real estate industry including over 10 years as a former broker in the Edmonton Region.
Email: email@example.comPhone: 403-209-3619