By Vicki Trapp, AHWD, ASP, CRS, GRI, SRES, SRS, President
Greater Chattanooga Association of REALTORS®
Sellers often complain to their REALTOR® about mailings they receive from other REALTORS® seeking to list their home. Even with disclaimers, these mailings can cause a seller to reach out to their listing broker to confirm their property still is on the market. So how does this happen? How do other REALTORS® not know the home already is listed? Has the potential listing broker violated the REALTOR® Code of Ethics?
Let explore this topic in light of a recent change we made within our Multiple Listing Service (MLS). We created two new listing status options – Withdrawn/Temporary and Withdrawn/Released – and eliminated the former Withdrawn option. These changes will better server sellers by clearly communicating whether a seller remains exclusively represented by a fellow REALTOR®.
With the previous singular choice of “withdrawn,” it was a guessing game at best as to whether a seller’s listing agreement remained in effect. In the Greater Chattanooga market, “withdrawn” was used to communicate a variety of scenarios:
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The seller requested their home be taken off the market for a short time, perhaps to host out-of-town guests or to make improvements to the property. “Withdrawn” was used to indicate that the listing agreement remained intact, yet the seller was not entertaining showings during this timeframe.
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The seller no longer wished to work with the listing broker; however, the listing broker reserved the right to earn a commission if the property sold prior to the expiration date of the listing agreement. “Withdrawn” was used to indicate that the listing agreement remained intact, yet the seller no longer was actively marketing their property for sale with their listing broker.
- The seller and listing broker mutually agreed to terminate their listing agreement prior to the expiration date. “Withdrawn” was used to indicate the listing agreement no longer was in effect – no exclusively agency relationship remained between seller and listing broker.
Each of the above-described scenarios is unique, yet, our local practice was to use one status – withdrawn – to communicate each of these very different scenarios. No wonder potential listing brokers were contacting sellers – if a listing broker always used “withdrawn” to indicate #3, then a listing broker overlooked the potential that other brokers might have used “withdrawn” to indicate scenarios #1 or #2. Thus, the seller’s receipt of mailings soliciting their “expired” listing. Thankfully, we found a solution!
Within our MLS, the “withdrawn” status no longer is an option. In its place are two new status choices:
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Withdrawn/Temporary is used to accommodate scenarios #1 and #2. This status conveys that the listing agreement remains in effect between listing broker and seller, until the listing naturally expires or is changed to another status. Also, Withdrawn/Temporary can be used to facilitate another scenario – a seller secures a listing agreement with a REALTOR® yet requests the listing not yet be marketed as available for showings. Withdrawn/Temporary status can be used to accommodate this “coming soon” situation and allows the nearly 1,500 buyer’s representatives to know that the listing soon will be available for showings.
- Withdrawn/Released is used to accommodate scenario #3. This status conveys that the listing agreement has been terminated between the seller and listing broker. Withdrawn/Released indicates to other REALTORS® that the seller and listing broker have “released” one another from their listing agreement prior to the original expiration date.
Sellers still may get the occasional mailing from a REALTOR® offering their services. Our Code of Ethics provides that REALTORS® “shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other Realtors® have with clients.” However, the Code “does not preclude REALTORS® from making general announcements to prospects describing their services and the terms of their availability even though some recipients may have entered into agency agreements or other exclusive relationships with another REALTOR®.” Also, the Code “does not preclude REALTORS® from contacting the client of another broker for the purpose of offering to provide, or entering into a contract to provide, a different type of real estate service unrelated to the type of service currently being provided . . .. However, information received through a Multiple Listing Service or any other offer of cooperation may not be used to target clients of other REALTORS® to whom such offers to provide services may be made.”
Through the use of Withdrawn/Temporary and Withdrawn/Released, we’ve clarified which listings may become available for showing at a later date and/or whether a listing remains exclusively listed with a REALTOR®. With these two new listing statuses, we look forward to providing better service to the buying and selling public and communicating more clearly with our fellow REALTORS®.