How Will the Change of MLS Systems Affect Braemar Market Data?
In November 2018, our area switched to a new MLS system known as Bright. Previously, we had been using a system known as Matrix. These systems largely work the same, but what may affect the market data I share with you in my Braemar market reports is how Bright counts “days on market” differently than Matrix.
In Matrix there were three statuses that denoted when a property was under contract. All of them, stopped the days on market counter, whether there were contingencies in the contract accepted, or not. Bright does not work that way. In Bright, our new statuses are: Active Under Contract or Pending. Active Under Contract is to be used to denote when a listing has gone under contract, but there are still contingencies in the contract that may cause the deal to fall through. These contingencies could be anything from home inspection, appraisal or even home sale. It isn’t until all contingencies to the contract are removed that agents are to note the listing as Pending, where the days on market counter stops.
There are two problems we are facing. First of all, if every agent followed the rules of the statuses, we would have a different measure when comparing to older sales. And my market reports pull data up to a year away.
The second problem is that some agents will not obey the new rules of the road. They feel cheated that their own marketing stats are being skewed. If you get a property under contract in three days, but it takes twenty-one days to remove the contingencies, the days on market counter is going to reflect twenty-four days that the home was marketed. The solution that many agents are using, despite Bright rules is to put a property straight to Pending status. What’s the big deal?
Pending properties are not able to be shown. And as a Braemar Listing Agent, I can tell you that as our market contracts and buyers begin to have more negotiating power, it is going to a very good thing to have back up offers. You can’t get those without the ability to show your home to another buyer. And if you never use the Active Under Contract status, for exactly that purpose, you can’t allow showings that could result in a back up offer. In December 2017 I saw the importance of a back up offer keep my sellers having to give anything additional in assistance, or do any repairs, when the primary buyer stalled the list of repair requests to land two days before Christmas, which put my sellers on a three day turn around. The back up offer gave them the leverage to say no and not have to do, or give anything additional. Active Under Contract, in my professional opinion, should be embraced.
This is a complicated issue, and is further complicated by the problem that is always forefront in the real estate industry:
NOT ALL REAL ESTATE AGENTS FOLLOW RULES, REGULATIONS OR LAWS.
As your Braemar Real Estate Resource, I am here to tell you that my business is operated above board. Will I still be able to tell you how many days it took me to a property under contract? Yes. Will just involve counting the difference between when the property was listed and when it went under contract. For whatever reason, that seems too complicated for some agents.
When it’s time for you to sell your Braemar home, give me a call. I will put your needs ahead of my own each and every time, including my MLS marketing days numbers, because what is best for you is all that matters. Since 2005, No One Knows Braemar Better!
Associate Broker-Licensed in VA
Long & Foster REALTORS®