PCG, BOM, what?
In the conversation last week, jbf wrote in to correct a mis-assumption:
The "little red note" next to an mls listing is not an indication of a scam! It is an indication that Back Up Offers are be entertained pending some event, such as signing of the P&S, Loan Commitment, Subject to Lender Approval.
Clearly, not everyone gets this. I wrote about the red notes before. Here’s a crib sheet of the symbols you may see:
The little red note and red ACT means that the seller has an accepted Offer to Purchase on the home. That contact is binding unless the buyer wants to make a change (like requesting money back after inspection or needing an extension on the loan commitment date.) Some sellers ask their brokers to continue to market the house until closing, just in case.
PCG means that the price has changed. This can be any change in price; a big reduction, a little one, or even an increase. Whenever a price is changed, the listing pops back to the top of the list for those searching with the newest listings on the top.
Here’s a real example from a current listing:
10/6/2009 Listed for $479,900
10/15/2009 Price Changed to: $478,876
NEW means new to the market, sort of. One caveat: A property can be on the market for a year and not be sold. Then, it can be NEW again after being off the market for a while.
BOM is back on the market. That means a transaction fell through. You can ask the listing broker “why,” but you will get a face-saving answer, not the whole truth. Expect vague answers like “the buyer got cold feet after the home inspection,” or “the buyer and the seller couldn’t agree on the Purchase and Sales Agreement.” Seller’s brokers are required to tell you if there is a material concern that could influence you, as a buyer. An example of this would be if a buyer withdrew after the inspector found signs of undisclosed fire damage.
EXP means that the contract between the broker and the seller has expired.
EXT means that the contract between the broker and the seller has been extended.
RAC means that the contract between the broker and the seller expired, but then the parties renewed it.
CAN means that the contract between the broker and the seller has cancelled by either party. This cancellation must have written consent of both parties.
WDN means the contract between the broker and the seller is still in force, but the house has been withdrawn from the market at this time. This can happen if family members are ill or have a major family event, or need to do a repair. If a property can’t be shown for a couple of days, you won’t see this. But it there is a week or two, you should.
I know there is not much to discuss here. But I hope these notes help you understand what you are reading. Do you have questions about these?
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"CAN means that the contract between the broker and the seller has cancelled by either party."
Rona, the cancellation of the listing agreement actually needs to be agreed to in writing by both parties. A property owner cannot cancel the listing agreement without written agreement by the listing broker and vice versa.
You are correct.
CAN means that the contract between the broker and the seller has been can can cancelled by either party. This cancellation must have written consent of both parties. I changed the text above accordingly, since I hope this serves as a crib sheet for MLS hunters.
I don't do the listing business, but I can see how this distinction matters. A seller who doesn't sign a cancellation notice can hold a property on the MLS that is not really being marketed. That could account for listings that can't be shown, but are on MLS as active.
Hi Rona,
I have a question on this one...we bought our house in August 2009 and after both parties signed the offer letter, the seller's agent did not modify the listing online to indicate that the house had an accepted offer on the table. She continued to the show the house to other interested parties, but no stipulation that it was already under agreement. I found this to be very unfair, both to other prospective buyers who had no idea and also to us as the sellers.
When we asked the seller's agent why it was still listed as available with no indication of its change in status, she said that she does not change her MLS listing to "Under Agreement" until the Purchase & Sale is signed.
In the end, we got the house, but no thanks to the seller's agent. Dealing with this person was very contentious and our buyer's agent told us that the seller's agent could have been fined everyday for not modifying the MLS listing. We didn't pursue it further because it worked out despite this person's best effort to undermine the deal.
Do you happen to know what the rule is here, if one even exists?
Thanks!
Dear Gardiner,
One of the reasons that the Multiple Listing Service (MLS) is a good database is because it is policed and can levy fines.
Here's the rule: when an Offer to Purchase is signed, the listing agent has 24 hours to change the listing to the "red ACT" (what we've been calling "the little red note") or UAG. Failure to do so results in a $1000 fine, if reported.
Do you have a copy of your Offer to Purchase?
Hi Rona,
Yes, we do. Offer to Purchase was signed June 15th. The seller's agent did not modify the MLS listing until July 8th or thereabouts when the P&S was finally signed. I even kept a screenshot because I couldn't believe it.
Rona, I've been through the same thing. Flat-out refusal to change the listing for four days to drum up better offers, because nothing on the table was quite juicy enough for the listing agent. MLS was completely unresponsive to complaints. No reply, no callback, no email, zip.
Hi Rona, I have found MLSPIN, Inc. to be very unresponsive for requests to fine and/or suspend and/or bar brokers from the MLS. I currently have an issue with a terribly unethical broker and MLSPIN, Inc. has done absolutely nothing with my complaint.
We had the same issue with the broker not updating the listing to under agreement for several days. If they want to continue to entertain offers, why not change the status to accepting backup offers? If anything, that would prod anyone who was considering making an offer to throw one in.
This blogger might want to review your comment before posting it.
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