New MLS Rule Will Impact Housing Inventory Levels
MLS PIN, the largest Multiple Listing Service in New England, announced this month that they would change the way home listings will appear in syndication feeds by removing the “Active with a Flag” status from listings for homes for sale. This means home buyers will see even fewer homes for sale on real estate websites than previous housing inventory numbers indicated. Before the change, when a home received an offer from a buyer, the listing agent could list the property as under agreement, or list it as active but flag it red. This flag indicated that the seller accepted an offer to purchase, but was waiting for the purchase and sales agreement to be signed or some other condition before officially changing the status. Sometimes listing agents would mark the listing active with a flag to mean the seller will still allow showings and accept additional offers.
Active with a Flag Caused Confusion
The problem was the listing would still appear as active and show up as available for sale on all the home search websites, and buyers would continue to call about these homes even though they were under contract. Many listing agents and sellers liked this because they wanted to keep buyers interested as backups, but this would be very frustrating for buyers. They would see a home on a real estate website that they were interested in, and call to schedule a showing only to find out the home wasn’t available anymore. This active with a flag status was frustrating for agents as well. Buyers wouldn’t believe agents who said the home was off the market because buyers could still see the home on websites. The new MLSPIN rule is a welcome change as there will no longer be confusion about which homes are actually available for sale. However, now that these listings will no longer appear as active, home buyers will see even fewer homes for sale on real estate search websites.
How The New MLS Rule Will Affect Current Housing Inventory Levels
How will this affect housing inventory? Right now the number of homes that show as available for sale is misleading. Once these flagged listings no longer appear active and instead appear under agreement, real estate websites will show even fewer listings than before. However, websites will reflect the true number of homes for sale which will be better for sellers, agents, and home buyers. The change will go into effect within the next four to six weeks. [button_with_arrow text=”Search Homes” style=”dark” title=”Search Homes for Sale” url=”http://www.lamacchiarealty.com/property-search/” align=”left”]