MLS Property Information Network (MLS PIN), New England’s largest multiple listing service (MLS) and the MLS that we at Entry Only New England utilize, is rolling out a significant change to how they handle the use of Contingent property status.
As a refresher, a property listing in the MLS with a Contingent status means the Owner has a mutually accepted and executed offer, but the Owner has requested it still be listed in the MLS as active for the purpose of receiving backup offers. Such listings carry a status of “Contingent” or “CTG”, and must continue to be shown to interested buyers and their agents. A Contingent property must meet one of the following conditions: Inspection, Attorney Review, Appraisal, Financing, Third-Party Approval, Pending P&S.
Contingent status can sometimes be misleading, because the MLS system, the ultimate system of record, calls it “Contingent”, yet popular sites like Zillow and Redfin call it “Pending”, Trulia uses “Active Contingent”, while Realtor.com uses “Contingent”.
So, what’s changing with Contingent status?
A change to the Contingent (CTG) status has been approved by the MLS PIN Board of Directors. This change is being made to address the overwhelming number of listings being left in CTG status when they are not available for showings or should not actually be in an active status. According to the MLS PIN front office staff, CTG listings account for approximately 25% of the current active listing inventory in the MLS, and as a result, the CTG listings that are legitimately available for showings are being lost amidst the overwhelming number of those that are not truly available.
Practically speaking, what does this mean for an MLS listing, be that an entry only MLS listing or otherwise?
MLS PIN will implement a change so that a Contingent listing will remain Contingent for a period of 14 days, after which it will automatically convert to an Under Agreement (UAG) status. If a listing auto-converts to Under Agreement status, it can be made Continent again by changing its status to Back On Market (BOM) and then changing its status to Contingent (starting that 14 day clock over again).
MLS PIN has created a property status quick reference guide that provides a full rundown of what all the real estate property status terms mean in the MLS system.