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.
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fundamental reporting changes with respect to conditional sales occurred the value of a P and U as a historical tool is no longer valid; Consumers should not be discouraged from choosing P and U simply because it will remain in the property history; Sellers have no control over buyer’s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.