One of the more frustrating things for consumers to experience when searching for real estate to is to see a desirable property online for sale, send it to their agent to schedule a showing, and then not be able to get in. Sometimes the listing agent doesn’t respond, which is a violation of the rules. But other times the buyer’s agent is told that there is a deal on the home, contracts are about to be signed, and the that the seller has concluded showing the property. Often, it’s still active a week later. Why, you might ask, is it appearing online as active and available when the showings are finished?
In other cases the frustrated buyer has contacted the listing agent directly, only to be told that the agent will happily show them the property.
It’s frustrating for buyer agents also.
Part of the problem is that the contract process in Westchester and surrounding counties is not super compatible with MLS practices. Our local market is quite unique compared to the rest of the country and indeed the rest of New York State.
Here’s what I mean. In virtually every other market, the agents themselves fill out the contract paperwork. Even in upstate New York, the agents execute the contracts and it is contingent on attorney approval and inspection. But both parties sign the c0ntract almost immediately. In those cases, the MLS status is changed to reflect that the home is officially under contract, and the active listing disappears from consumer online searches. The contract is contingent on a home inspection in most cases, but the property is under contract.
But in Westchester, the Hudson Valley, all 5 boroughs of New York City, and Long Island, the contract process is completely different. First, the attorneys, not the agents, promulgate the contracts. Agents do a non-binding memorandum. Before the lawyers will send out the contract, they want the inspections completed. Now, if a buyer and seller have a meeting of the minds on a Monday, the inspection may not be completed for another few days. Often, wrapping up scheduling the inspection and resolving the findings can take 3-4 days even if everyone is on their game. That puts us to Thursday or Friday. Then, the seller’s attorney send the contract to the buyer’s attorney.
It is safe to say the-at the buyer’s attorney seldom agrees with 100% of the verbiage on the proposed contract. There may be some back and forth on wording. But again, let’s suppose that both attorneys agree to the contract verbiage within 48 business hours. This put us to the following Tuesday, or 8 days since the original meeting of the minds. Then, the buyers have to schedule a time to meet with their attorney and go over the contract for signing and to make their deposit. That often takes another day or two, so even in a fast scenario, we are at Thursday. The signed contract and deposit arrive back to the seller’s attorney the following day if we are moving fast, and then another day or two for the seller’s to meet up with their lawyer to sign and have a fully executed contract.
We are now two weeks into the “deal,” and all this time the property has remained in Active Status in the MLS and appears available the entire time. In that time, the buyer could change their mind, or another offer could come in that the seller likes better, and the could switch horses also. Anyone watching the property online would reasonably presume that the home is available.
In some cases, the seller can end showings and by rule their agent should change the status of the listing to TOM or “Temporarily off Market,” but my colleagues aren’t always that proactive. Moreover, contracts could be out and signing could be imminent, but until they are signed, the listing agent could still show the property to anyone who inquires to at least have a backup if the current offer doesn’t perform. It’s not very nice of them to say one thing to a buyer agent and another to a direct consumer inquiry, but it does happen.
But as you can see, the timeframe of local practices in Westchester and the surrounding area are far longer than the rest of the country , and the 2 weeks I outlined is more or less average. I’ve seen instances where it is drawn out for a month or more before contracts are fully executed and the listing status is finally changed.
Do I prefer how we do it locally? I do not. But I don’t have the magic wand to change it either, so all I can do is advise clients about how to expedite matters for their best interests and to prepare them for the timeframe and its foibles.
It does take longer around here, and my job for clients is to move things forward as expeditiously as possible to ensure that their meeting of the minds becomes memorialized contractually.
Facebook
X
Pinterest
Copy Link
Why Listings that Appear Available Online Actually Aren’t
In other cases the frustrated buyer has contacted the listing agent directly, only to be told that the agent will happily show them the property.
It’s frustrating for buyer agents also.
Part of the problem is that the contract process in Westchester and surrounding counties is not super compatible with MLS practices. Our local market is quite unique compared to the rest of the country and indeed the rest of New York State.
Here’s what I mean. In virtually every other market, the agents themselves fill out the contract paperwork. Even in upstate New York, the agents execute the contracts and it is contingent on attorney approval and inspection. But both parties sign the c0ntract almost immediately. In those cases, the MLS status is changed to reflect that the home is officially under contract, and the active listing disappears from consumer online searches. The contract is contingent on a home inspection in most cases, but the property is under contract.
But in Westchester, the Hudson Valley, all 5 boroughs of New York City, and Long Island, the contract process is completely different. First, the attorneys, not the agents, promulgate the contracts. Agents do a non-binding memorandum. Before the lawyers will send out the contract, they want the inspections completed. Now, if a buyer and seller have a meeting of the minds on a Monday, the inspection may not be completed for another few days. Often, wrapping up scheduling the inspection and resolving the findings can take 3-4 days even if everyone is on their game. That puts us to Thursday or Friday. Then, the seller’s attorney send the contract to the buyer’s attorney.
It is safe to say the-at the buyer’s attorney seldom agrees with 100% of the verbiage on the proposed contract. There may be some back and forth on wording. But again, let’s suppose that both attorneys agree to the contract verbiage within 48 business hours. This put us to the following Tuesday, or 8 days since the original meeting of the minds. Then, the buyers have to schedule a time to meet with their attorney and go over the contract for signing and to make their deposit. That often takes another day or two, so even in a fast scenario, we are at Thursday. The signed contract and deposit arrive back to the seller’s attorney the following day if we are moving fast, and then another day or two for the seller’s to meet up with their lawyer to sign and have a fully executed contract.
We are now two weeks into the “deal,” and all this time the property has remained in Active Status in the MLS and appears available the entire time. In that time, the buyer could change their mind, or another offer could come in that the seller likes better, and the could switch horses also. Anyone watching the property online would reasonably presume that the home is available.
In some cases, the seller can end showings and by rule their agent should change the status of the listing to TOM or “Temporarily off Market,” but my colleagues aren’t always that proactive. Moreover, contracts could be out and signing could be imminent, but until they are signed, the listing agent could still show the property to anyone who inquires to at least have a backup if the current offer doesn’t perform. It’s not very nice of them to say one thing to a buyer agent and another to a direct consumer inquiry, but it does happen.
But as you can see, the timeframe of local practices in Westchester and the surrounding area are far longer than the rest of the country , and the 2 weeks I outlined is more or less average. I’ve seen instances where it is drawn out for a month or more before contracts are fully executed and the listing status is finally changed.
Do I prefer how we do it locally? I do not. But I don’t have the magic wand to change it either, so all I can do is advise clients about how to expedite matters for their best interests and to prepare them for the timeframe and its foibles.
It does take longer around here, and my job for clients is to move things forward as expeditiously as possible to ensure that their meeting of the minds becomes memorialized contractually.