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Frequently Asked Questions |
| MLS and IDX, Pending Sales, Sign Riders, and do I really need an agent? |
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What does MLS stand for and what is it? MLS is an acronym for Multiple Listing Service. Long ago, the real estate community realized the value for customers by placing or "pooling" listings into a central source. In short, a listing offered by Agent A with firm ABC can be shown and sold by agent D....Derenda.... with firm XYZ....CENTURY 21 Bessette Realty, Inc.....:) MLS offers a win for buyers and sellers. Buyers save time by utilizing one REALTOR® to show multiple properties. Sellers gain more exposure. What does it mean when a sign or an agent says "Under Contract" or "Pending Sale" Pending or Under Contract both mean the same thing. An contract has been signed by a buyer and a seller. I know, I know....your next 2 questions are probably.... Can I still see a house that is Under Contract or Pending? Generally, to continue to show after a contract has been signed is a seller decision. If a seller is comfortable that all the contingencies in a contract will work and are tired of keeping their home "show ready" they may very well elect to essentially remove their home from the market on the faith that the contract will work. What does it mean if an agent tells me that a home is under contract/pending, but can still be shown? Why would a seller do that and why should I waste my time looking? If an agent tells you that you can look at a home that is under contract/pending, it means that the seller does not want to cease showings just because of a contract. There are a number of items that can cause a sale to fall through as detailed below in "What can cause a sale to fall through?" A seller can feel good about the contract, but still make the decision to treat their home as a "continue to show." Locally, the status code in MLS for this is "C." Some buyers elect to look at homes that are under contract/pending in case the contract falls through. Others feel is is a waste of time. My preference is to attempt to determine the motivation for the "C" status. If the contract is based on the sale of another home, I would generally encourage a buyer to have me show the home. At the very least, it helps my buyers to have a more thorough understanding of the market. Another way to consider this is as a "nothing ventured, nothing gained" proposition! Why do some firms place "Sold", "Under Contract" or "Pending" sign riders and others do not? The decision on when to place a sign rider on a property is up to the seller and their agent. It is not uncommon for the sign rider to be delayed until the major contingencies are removed. Again, this is a reason to establish a relationship with an agent as the agent can ascertain "what's what." What is IDX? Internet Data Exchange is a method whereby participating firms agree that fellow members can publish their listings on their websites. For example, by using my IDX, you basically have the ability to search MLS on your own. If I can search on my own, who needs an agent? Searching is only a small part of the puzzle. But first, let me mention that as powerful as it is, IDX is still not the best way to locate a home! Like most REALTORS®, I can enter your parameters in MLS and arrange for you to automatically receive listings. Listings sent to you trumps you searching for listings. A cautionary note, the local system automatically purges these auto-e-mails after 60 days so it is important to let your agent...me, I hope...know that you want to be renewed. Now, lets get back to why I say "searching is only a small part of the puzzle." Prior to starting a home search, part of my service is to assist you in understanding the process, both in general and locally. this includes a thorough understanding of Agency, discussing pre-qualifying VS pre-approval, determining your parameters, negotiating style and goals and much more. Once you decide to make an offer, it is critical to make sure that all parties comply with Louisiana's various contract laws and forms. I take the time necessary for you to feel comfortable with the process and the documents. |
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| Anything else I should know about MLS or IDX? For now, this explanation should suffice. However, the winds of change in the arena are numerous and new database models are being considered. Some are even in beta testing stages across the country. |
| Contracts |
Derenda S. Grubb, RECS,GRI, CRS, ABR
derenda@derenda.com
337-310-2158
CENTURY 21 Bessette Realty, Inc.
Lake Charles, LA 70601