Pending History To Be Removed

At their May 7 meeting, CREB®’s board of directors voted in favor of a motion to remove the P(ending) and U(nder contract) status from the property history once the property status changes. This change will go into effect on Monday, June 9.

Pending

From CREB®:

Since fundamental reporting changes with respect to conditional sales occurred the value of a P and U as a historical tool is no longer valid; Consumers should not be discouraged from choosing P and U simply because it will remain in the property history; Sellers have no control over buyer’s satisfaction with respect to conditions. As a result, through no fault of the seller or the property, a property may come back on the market.

Now, sellers can choose the status that meets their needs, including P, no showings U, showings, or A, without the mitigating worry that a buyer’s actions (or inactions) will negatively impact their properties future marketability.

I understand the rationale of removing pending listing history from the seller’s point of view, but there are two sides to every transaction.  It’s a step backwards in transparency and another change that favors sellers over buyers.  Remember, it was only in 2011 when changes were made that allowed the non-reporting of conditional sales, thereby keeping buyers in the dark about whether a listed home was even available.

What makes this change frustrating is that it won’t stop agents from downloading pending data before the status changes.  It just means more work having to regularly export the data to keep track of properties that have gone pending.

The pending status provided invaluable insight into a listing.  If a property went pending several times without selling, chances were it was more than simply a buyer financing issue.   It was a small red flag that meant more questions needed to be asked by the buyer’s agent to save their clients time and money.

3 responses to “Pending History To Be Removed

  1. Tip for Calgary agents: Unless the board also turns off email notifications for pending status changes, you can try this.

    Set up a new search on mlxchange and subscribe yourself to all pending/under contract status changes. Have all the emails filter into a folder automatically. (For example, when you link to client, enter a unique salutation and filter all emails by that word/number)

    Then when you want to check if a home was previously C/S all you need to do is search that one email folder.

  2. Agreed, definitely a backward step in full transparency.

  3. Over the years, the real estate associations as well as municipal real estate boards have put forth both time and effort to protect the public from poor representation and lack of transparency as well as improving the overall public opinion of how real estate transactions are conducted from beginning to end. I agree that this change in our reporting system to the public is a reversal leaning towards a lack of transparency. Providing buyers with status information offers the opportunity of making clear choices to view properties that are under contract, or not. By posting a property as Active when it is actually under contract is misleading at best. Consideration should also be put forth to Buyers who may wish to write an offer on a property posted as an active listing and when finding that the property is actually conditionally sold since they are not only disappointed but it also adds to a posture of having to be cautious within our industry when our own reporting system is appears to be misleading. This contradicts the very essence of the atmosphere of the spirit of good business which encompasses complete transparency that we are striving to protect. In my opinion any attempt to offer up a reporting system to the public should reflect the legal position of a property in a forthright manner that can be clearly stated for anyone’s level of understanding.

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