Home market status? What all the abbreviations mean..

Jeff from Fresno asked: What does Pending taking back up mean?? I am from California and not familiar with the term.

Great Question Jeff, All over the country there are different terms used in real estate transactions. I will try and out line the major ones here.

Texas area status abbreviations and definitions

A = Active – A property is active and a seller wants to sell

AC = Active contingent – A property has an accepted offer however the property is contingent on the sale of another property by the buyer.

PB = Pending taking back up – A property has an accepted and executed contract in place but there are option periods that the buyer has negotiated and the seller has reserved the right to accept back up offers on the property. Once another offer is accepted the seller notifies the buyer in position A that a back up offer has been accepted on the property.

P = Pending – After all option periods expire and the contract is still in place this status change just lets the market know that the contract is proceeding to a closing.

S = Sold – The transaction has closed and funded.

W = Withdrawn – Property has been with drawn by the seller from MLS

X = Expired – Listing contract has expired and the property is not being actively marketed on MLS

T = Temporarily withdrawn – seller has asked that the property be removed from active ststus but intends to resume marketing at some point in the future.

L = Leased – A property has been leased for a contracted period of time.

Some markets will have variations of these statuses. In California they refer to a contract as being under “Escrow” that means the funds are with tht title company or attorneys in an escrow account to be distributed on the closing date of the contract. In Texas we use title companies to transact 95% of the residential transactions. They set up escrows for each individual property as well we just do not use it in our language.

In Massachusetts and some of the New England states. Real estate transactions are closed with attorney offices that do the title work and sellers and buyers go to the attorney's offices to sign the paper work.

I hope this answers some of your questions Jeff. Please feel free to contact me directly if you need more information.

Bob Kenney, Realtor ®

Mobile/Text - 512-922-4922

“What’s going on in the market?”

Ever ask a Realtor this question at a party or social event? Surprised at the generality of the answer?

We as Realtors are taught to respect the Agent/Client relationship. If you are not formally working with an agent you are what we refer to as a customer.  In an Agent/Customer relationship there is no general understanding about the respective roles of each individual.  A Realtor sounds guarded because we are taught not to give advice that others may act on if they are not clients. Seems trivial but it is rather fairly straight forward. You might not reveal all the particulars about a property or transaction you have in mind when you ask the question. You act on agent’s thoughts and later feel you were misadvised about the state of the market. This has actually happened and as a result Realtors have been faced with having to defend themselves in law suits.

In an Agent/Client relationship there is full disclosure of motive, fiduciary responsibility of the Realtor to protect these motives and all personal information disclosed in the relationship. This fiduciary responsibility survives any contractual dates and a good, professional Realtor will make certain you are advised of these facts. Thus when advice is given it is specific and well thought out.

There are several misconceptions a professional Realtor deal with on a daily basis “every Realtor should be advising me on the market conditions” and “why should I pay a commission, I know plenty of people who want to buy my home”.

Well 1^st and foremost I am a professional and I earn a living and pay my bills by advising my clients about the sale and purchase of real estate. If I were to come into a consumer’s work place admire a particular item or service and say “great, I like that can I have it for free” I don’t think I would get a very good reception. Unfortunately this happens quite a bit in Real estate.

There is also a general misunderstanding in regards to the costs of a Real estate professional participation in a real estate transaction. Some consumers look at the commission as an inflated cost that no one agent can justify. I like to educate my clients explaining that the total commission does not reach my pocket intact. There are typically broker fees, expenses that are paid out of pocket by the agent (in 90% of the cases there is no expectation of reimbursement, even if a deal does not happen), Federal tax liabilities and regular expenses associated with maintaining license/ association memberships etc. 

It is just like every other business out there. You have a gross and a net compensation. The goal of every Realtor is to increase his/her sales to help average the costs of maintaining their license and professional designations.

Commissions are such a touchy subject with some consumers and Realtors that they tend not to talk about the costs associated with a transaction. In my business plan I have a mix of business. Client referred, repeat clients, new client associations through marketing and market exposure, Realtor/Broker referral business and 3^rd party relocation referrals. All of these types of clients are treated equally by me even though they all have some different fee structure associated with them. The goal at the end of the year is to achieve an income level that allows reinvestment back into the profession and earn a sustainable living.

There is a reason that Real estate plays such a large role in our current economy. It is not only the Realtor commissions that generates income, all of the inclinatory services from Property inspection, appraisal, title or attorney fees, mortgage lending, credit reporting, moving services, home improvement if you think about it one transaction generates a lot of momentum into the economy and it is no wonder we were in such dire straits when the markets ceased in 2009/2010.

So next time you are talking to a Realtor at a party or social gathering ask “how his/her business is going” instead of “what is happening in the market”. You might get a different response then what you are used to. And don’t be surprised if the Realtor asks if you are in the market and if so do you have an agent representing you interest. They are asking for a reason.

I wish you all the best of luck in 2014.

May your dreams come true, your goals be realized and your health well

Kind Regards,

Bob Kenney, Realtor

VP Turnquist Partners Realtors

Mobile/Text: 512-922-4922

Email: rkenney51@gmail.com

I am thinking of moving to Austin, TX. Where do I stat!

Great question Jen,

Thank you for contacting me. If you are moving to Austin why of course you want to call me! 512-922-4922 is my mobile.

This is an important question no matter where you are relocating to. why? because you are not only choosing a Realtor to assist you in getting set up in a new place but you are also choosing a partner in the transaction. Your Realtor of choice should be keeping your best interest in mind at all times, guarding your privacy and giving you the time you need to make the best decision. This will help reduce the ever present stress involved with any move and also helps manage your valuable time.

If you find someone that will send you listings and tell you to drive by the listings when you are in town and call them if you want to see anything you may want to reconsider engaging them for your search. This is a true scenario I have seen times and in my opinion is not the sign of someone that is going to spend a lot of time representing your best interest.

1st thing you need to do is contact a licensed Realtor so that you can discuss your goals relative to a move into the Austin area.

If you know a trusted Realtor/Broker in your home town ask them if they have a recommendation of a broker. Now of course this might single that you are moving so their ears may perk up a bit so make sure you have a plan of action on your current housing situation. Also be aware that if this Realtor/Broker refers you to the right agent they may be receiving a referral fee from the agent on the other side. It is OK because this is a professional courtesy and should in no way affect the services you are going to receive by the new agent. It also makes asking for the referral a little easier because some folks think it may be an imposition to ask. don't let it be Realtors love the opportunity to refer a client to a new market even though they may be a little sad you are leaving!

Why is it important to choose the right Realtor? because they will become a partner in your search for your property. If you find someone that will send you listings and tell you to drive by the listings when you are in town and call them if you want to see anything you may want to reconsider engaging them for your search. This actually happens and is not the sign of someone that is going to spend a lot of time representing your best interest.

There are a few ways you can find the right agent. You can search the commercial real estate sites like Trulia and Zillow but I will caution you not to go solely on the recommendations of "neighborhood experts" or "top producers" on these sites. These are usually paid positions that the agents have invested in to get to the top exposure and more leads. It does not always mean they are the experts in the areas they appear in. They aren't cheap either and this is a testament to consumer trust in "if it says they are the expert than they must be the expert".

The key to all of the social media platform based Realtors is you need to take additional steps once you have identified an individual. When I have a vendor/client I want to know more about I start with a Google or Bing search. This usually produces additional web exposure on the individual. Including Linked in, personal web sites, yelp reviews etc..

All successful realtors will be able to provide you with references of previous clients so make sure you ask and follow through contacting these references. Like job applications you want to make sure the references are real (one good indication about the agents character!) and gives you a chance to ask the reference about things you find important when working with agent. for instance:" Were they professional", "helpful and honest in opinions", "dedicated", "trustworthy" whatever criteria you are looking for in a representative.

Jen I hope this helps you with the beginning of your thought process. Wherever you end up moving I wish you the best and hope all of your transactions are successful ones.

Holiday wishes for everyone

Bob Kenney, Realtor
VP Turnquist Partners Realtors

Mobile/Text  512-922-4922