Distinction Without With a Difference: “A,i” vs. “P”
Once a “For Sale” home is under contract, Sellers are required to tell prospective Buyers (and their agents) of that fact.
Otherwise, Buyers who view the home and write an offer — only to be told it’s already sold — tend to get upset! (and do things like threaten to have the listing agent fined).
What’s in a Letter?
However, at least in my experience, there’s a right way and a wrong way to let Buyers know the home is spoken for (or, at least subject to inspection).
The correct way is to change the MLS status to “A,i” — Realtor shorthand for “Active, subject to inspection.”
Agents who want to show the home then know that for their Buyer to have a shot, the existing deal has to first hiccup.
The incorrect way is to immediately switch the home’s MLS status to “Pending.”
Leaving a Trail on MLS
The difference?
Once a home is “Pending” on MLS, no more showings are allowed (and the Buyer’s inspector may also have a hard time scheduling an inspection appointment).
Too, if the Buyer’s inspection raises issues that can’t be resolved and the deal subsequently unravels, the home’s MLS status has to be changed from “Pending” back to “Active.”
By contrast, with “A,i”, there’s no change in status (the “i” simply qualifies the home’s “Active” status, and doesn’t show up in the MLS archive history).
Avoiding Any Stigma
Even if the Buyer who walked did so over a trivial inspection issue — or simply changed their mind — I don’t think it ever helps Sellers for Buyers to know that a previous deal foundered.
Call it reverse chicken soup: “can’t help, might hurt.”
P.S.: On a purely emotional level, as a listing agent, I’m superstitious about switching a home’s status to “Pending” before the Inspection Contingency is removed.
That said, I’m aware of a school of thought that argues for immediately putting up a “Sold” sign in front of the home once a deal is consummated.
The logic?
It cements the Buyer’s emotional commitment when they return for the inspection (and excitedly drive by their new home and block — perhaps several times!).
