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When a listing goes pending, does it really mean there is an offer the seller is considering, and that offer is validated through some MLS? I was talking with a professional flipper that flips homes for a living and he said that if his homes doesn't bring full asking offers or close to, he will tell the people he has multiple offers and to submit highest and best. If they still don't go up much, he will tell them he accepted a higher offer and turn his house pending for 30-40 days. Then he turns it back to active and adds "BACK ON MARKET" and other buyers put in close to asking offers because they think others are offering that much.
It sounds like a great idea to create attention to a listing, people want what they can't have and if they think other people are offering as much they will too. Ethically this is wrong, but why are there no regulations for such activity.
When a listing goes pending, does it really mean there is an offer the seller is considering, and that offer is validated through some MLS? I was talking with a professional flipper that flips homes for a living and he said that if his homes doesn't bring full asking offers or close to, he will tell the people he has multiple offers and to submit highest and best. If they still don't go up much, he will tell them he accepted a higher offer and turn his house pending for 30-40 days. Then he turns it back to active and adds "BACK ON MARKET" and other buyers put in close to asking offers because they think others are offering that much.
It sounds like a great idea to create attention to a listing, people want what they can't have and if they think other people are offering as much they will too. Ethically this is wrong, but why are there no regulations for such activity.
I don't believe it. Either this guy is lying to you or he's an idiot. If the houses are listed on the MLS the listing agent and his broker are putting themselves at risk for fines and other punishments. If they aren't on the MLS he can lie about multiple offers or status to his heart's content. I doubt all that tomfoolery does anything to help sell the houses or get a higher price anyway.
Why would he remove his home from the market for 30+ days? He's an investor looking to make money, not lose money waiting for another month to sell it and then another month for someone to close. I think you're being told a story.
I don't believe it. Either this guy is lying to you or he's an idiot. If the houses are listed on the MLS the listing agent and his broker are putting themselves at risk for fines and other punishments. If they aren't on the MLS he can lie about multiple offers or status to his heart's content. I doubt all that tomfoolery does anything to help sell the houses or get a higher price anyway.
This is extremely unethical and likely cause for a fine or possibly even worse punishment. Its extremely idiotic too- he's taking his house off the market for 30-40 days without a contract? That's 30-40 days it could sell.
With my buyers, when we see a home was under contract and fell through, we often see that as the sellers are disappointed that they thought it was sold but now they have to struggle to find another and may be more willing to negotiate because of that. His plan is not only unethical, a violation of MLS rules, but stupid.
To answer your question about what does "pending" mean- in my MLS, a house should go from active to contingent to pending to closed. Contingent = offer accepted but contingent on attorney review, inspection, buyer financing, and/or other possible contingencies. Pending = offer accepted and all contingencies satisfied or waived. This often does not happen, as many listing agents change to either contingent or pending once an offer is accepted, regardless of which is actually the appropriate label, and leave it that way until it is closed or reactivated from the deal falling through.
I don't believe it. Either this guy is lying to you or he's an idiot. If the houses are listed on the MLS the listing agent and his broker are putting themselves at risk for fines and other punishments. If they aren't on the MLS he can lie about multiple offers or status to his heart's content. I doubt all that tomfoolery does anything to help sell the houses or get a higher price anyway.
Yup, not to mention he loses 30-40 days worth of potential buyers.
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