You are using an unsupported browser. Please update your browser to the latest version on or before July 31, 2020.
close

How to list new construction in Canopy MLS

Listing new construction generates lots of questions to Canopy MLS Support.  “How to list new construction in Canopy MLS" explains how to list custom-built and to-be-built homes in the MLS, how to get new street and subdivision names added to the system, how to advertise bonuses and more.

Why should home builders use the MLS?
Buyers! Ready, willing and able buyers are just a click away. Get more sales by accurately marketing your properties to Realtors® through the MLS.

  • Marketing – The MLS listings go to numerous websites like CarolinaHome.com and Realtor.com, plus more through ListHub as agreements are reached. In addition, over 1,000 local real estate firms post the MLS listings on their local websites through Internet Data Exchange (IDX).
  • Statistics – Canopy MLS breaks out new construction versus resale in its reports to the media. Home builders who are members of Canopy MLS have access to these statistics through the MLS at any time. If more home builders participate in MLS, the data in these reports becomes more valuable.

Want to know more? You Make a Smart Choice with Canopy MLS

How can home builders get their listings into the MLS?

  • Subscribe to Canopy MLS Directly - Home builders who are licensed real estate brokers can participate in the MLS directly.
  • List Properties with Canopy MLS Subscribers - All home builders can list their properties with Canopy MLS Subscribers.

How should home builders use the MLS? 

To list properties that are for sale

If there is a listing agreement with a participant firm of Canopy MLS, including home builders who participate in the MLS directly, then the Listing Brokerage may submit New Construction properties to the MLS. “New Construction” means the Certificate of Occupancy (CO) is no more than two years old and the home has never been lived in. New Construction does not include remodeling. A listing may be entered with a Construction Status of “Proposed”, “Under Construction” (which has not yet received a CO), “Complete” or “Land/Home Package.”

It is permissible to list lots under land/lots/acreage and then also list floor plans under single-family. However, duplicate listings can be misleading, skew statistics and make Comparative Market Analyses (CMAs) cumbersome. No more than three active listings are allowed in the system per Parcel ID number. All duplicate listings must be cross referenced in the “Public Remarks” field with the additional MLS numbers, and each listing must be maintained concurrently. If the property sells, the Listing Brokerage must report the pending sale and closing on only one listing and change any additional listings to “Temporarily off Market” or “Withdrawn” status. Read the Canopy MLS Rules and Regulations Section 1.6 for more information about duplicate listings.

Proposed construction listings must include:

  • a specific lot or condo unit
  • a specific floor plan
  • a list price that includes the price of the structure and lot on which it is listed
  • a valid address
  • a valid legal description
  • accurate zoning. 

If there is no “Street Number” then use the lot number in the “Street Number” field as well as the “Lot/Unit” field.  Canopy MLS does not monitor the “Parcel ID” or “Deed Reference” fields for new construction listings because this information is often not yet known for new construction listings.

If a listing agreement for New Construction is not set up as a Firm Exclusive that prohibits dissemination of the listing by Canopy MLS and the property is not already under contract when the CO is issued then the property is required to be submitted to the MLS for dissemination to the participants. (see Section 1.2 #6).

To enter sold properties as comps

If the property is under contract at the time the CO is issued then the property may be either: (1) entered as a new listing and immediately updated to under contract status, or (2) entered for comparable purposes after it closes (see Canopy MLS Rules and Regulations, Section 3.6). If the listing brokerage does not input a New Construction Listing Agent Comp Sale within five (5) business days after the closing, then the selling agent has five (5) business days to input a Selling Agent Comp Sale, and the listing brokerage will receive no credit for the sale. 

If a Selling Agent Comp Sale is submitted to Canopy MLS and there is a concern from the Listing Brokerage or Seller, MLS staff can remove the name of the builder and add a statement to the MLS Staff Remarks explaining the concern about use of the data as a Comp Sale. 

The Canopy MLS Listing Edit Policy says when a seller or buyer (i.e., new homeowner) requests in writing the removal of listing data, Canopy MLS can accommodate such requests with the permission of the listing brokerage (or the Selling Agent for a Selling Agent Comp Sale) (if still a member) as follows:

  1. Change the “Internet Y/N” field to “N” to eliminate the distribution of the listing to IDX, VOW and syndication sites.
  2. Remove from public display all media except for the primary photo.

There will be no other modification of the listing unless required by court order.

Home builders who withdraw their sold listings rather than update the status to “Closed” and show the sale price are violating the Canopy MLS rule that requires all Participants and Subscribers to report sales information as a condition of submitting any listing to the Service. Withdrawing the listings rather than updating the status to “Closed” affects the statistical reports produced by Canopy MLS. It can also affect future sales in the neighborhood. For example, if a home does not appraise for the contracted sales price, it could be because the builder did not report all their sales in the MLS.

Some home builders input select sales while others input all of their sales. Canopy MLS encourages home builders to account for 100% of all sales by listing all properties and inputting comps into the MLS. Read this article for instructions on inputting “comp” listings after closing.

Filling in MLS data fields

Property Data Forms: The Property Data Forms list all the required fields for filing a listing with Canopy MLS. Filling these sheets out before entering a listing greatly reduces the stress of entering a new listing.

Canopy MLS Subscribers can copy their own listings. This feature makes inputting multiple listings much easier. Once a listing is copied, the only thing left to do is change the fields that are different like address, parcel ID, deed reference, square footage, etc.

New Streets, Subdivisions and other additions to Matrix Picklists: Use the “Picklist Request” under the “Resources” tab in Matrix to submit the names of new streets, subdivisions and other additions to Matrix picklists. Requests submitted by 3 p.m. will be completed the same business day. For streets, do not include street type (Road, Drive, Lane, Court, etc.). For schools, do not include "elementary," "middle" or "high."

The Listing Brokerage must provide verification of any new subdivision or complex name to be added to the system before Canopy MLS will add it to the list. Appropriate forms of verification (in order of preference) are a copy of a deed or a copy of the approved subdivision plat map. If the marketing name is different from the name that was recorded in the Register of Deeds then a photograph of the entry monument, or a professionally designed brochure or website for the subdivision, can accompany a copy of a deed or a copy of the approved subdivision plat map. Any request to add a subdivision or complex name that cannot be verified as described by this rule must be approved by the Canopy MLS Board of Directors.

Listings of Property to be Subdivided:  Property that is to be subdivided shall be listed in the MLS only when (i) the proposed division is exempt from the local subdivision ordinance, or (ii) when the property is subject to a purchase contract that satisfies all of the requirements of applicable law. Participants are encouraged to obtain advice from legal counsel to determine whether either of the above conditions has been satisfied. Canopy MLS does not determine whether such condition or conditions have been satisfied and makes no representation as to whether any listing in the MLS does or does not comply with such condition(s). Upon listing a property that does not have final subdivision approval, the Participant shall be deemed to have represented to Canopy MLS and to all other Participants that one or the other of the above conditions has been satisfied.

Compensation: The listing broker shall specify on each listing filed with the MLS the compensation offered to other MLS Member Participants for their services in the sale of such listing. Specifying a condition on the offer of cooperative compensation in the MLS is a violation.

Canopy MLS requires all offers of cooperative compensation in the MLS to be blanket, unilateral and unconditional.  The cooperating brokerage’s performance as the procuring cause of the sale or lease determines entitlement to the cooperative compensation.  For more information, refer to Section 6 of the Canopy MLS Rules and Regulations and Article 16 of the Realtor® Code of Ethics, Standard of Practice 16-10.

The compensation specified on listings published by MLS can be shown using either a percentage of the gross selling price or a definite dollar amount. Exceptions to this rule apply for dual or variable rate commission arrangements and named prospects exempted.

Compensation is based on the sales price agreed to in the purchase agreement, unless otherwise agreed to by both parties.

Bonuses: There have been numerous complaints and requests for mediation and arbitration about bonuses. Be extremely careful when making an offer of a bonus. Indicate whether or not the bonus is negotiable, who is offering the bonus and whether or not the bonus is contingent upon a full price offer. Hopefully this will cut down on the confusion and disputes about this issue.

Bonuses offered in the MLS should match other promotions, but listing brokerages are responsible for upholding what is offered in the MLS.

Photos:  With the exception of land, at least one digital image (photo/plat map/rendering) of each property listed in the MLS shall be submitted to the Service immediately upon saving the listing as “Active,” except where sellers expressly direct that photographs of their property not appear in the MLS compilations. However, an image or photo is not required of any listing in Coming Soon-No Show status until such time that the listing’s status is changed. Written documentation requesting that a digital image not be submitted, signed by the seller, should be available for review if requested by the Service. At least one photo must be an exterior view of the property structure for sale with the exception that for land, a plat or map of the specific property is acceptable.  All photos uploaded must be representative of the property, landscape, views, neighborhood and surrounding community.  If using a photograph (excluding artist renderings) that is similar to but is not a photograph of the actual listing, users must include the disclaimer "example photo" across the photograph.

“New Construction=Y/N” New construction means the Certificate of Occupancy is no more than two years old and the home has never been lived in. New Construction does not include remodeling.

Year Built: For listings that are to be built, the “Year Built” field needs to be kept updated. “Year Built” is based on the Certificate of Occupancy, not the building permit.

Branding: Information that might lead a consumer directly back to the listing agent, listing brokerage or seller ("Branding") is prohibited in the "public fields" of a listing, e.g. "Photos," "Photo Captions," "Virtual Tours," "Directions" and "Public Remarks" and "Restrictions."

“Green Certification” Field: If a “Green Certification” is denoted in the listing, then the certificate must be attached to the listing. If a certificate is not attached to the listing, then the “Green Certification” will be removed. This will not result in a violation of the MLS rules and no fines will be imposed.

  • New construction listings: the green certification must be attached to the listing upon reporting the listing as “Closed” status.
  • Resale listings: the green certification must be attached to the listing at the time the listing is input into the MLS System.

Using “55 and Older” – Qualified Senior Housing in Canopy MLS: Agents can indicate whether a listing is in a 55 and older community in listings submitted to Canopy MLS by selecting the Community Feature as "55 and Older." However, remember, “55 and Older” means “housing for older persons” (“HOP”) as defined by HUD. A qualified HOP development is one that is entirely occupied by persons aged 62 and older, or a development where at least 80% of the units have at least one resident who is 55 or more years of age. "55 and Older" does not mean the age of the property, and it should not be used for communities that are not age restricted, even though the community may appeal to "empty nesters." Misuse of “55 and Older” could put the agent in jeopardy of violating Federal Fair Housing regulations.

Agents marketing listings as being located in a "55 and Older" community must provide Canopy MLS with a “55 and Older Statement of Qualification” to verify that the community is qualified senior housing. The statement of qualification must come from an officer of the home owner association or other authorized representative (management company) who would know if the community meets the HOP criteria.

The statement must contain the printed name, signature and title of the certifying party and the printed name and signature of the witness to the certifying party’s signature.

The statement of qualification is required each time there is a new listing in a given community. Although a community may qualify as a 55 and older community today, it may not qualify tomorrow, next week or next month. Requiring the statement for each listing gives Canopy MLS (and agents) the benefit of a "good faith" defense if the listing is allowed to state “55 and older” when it is not.

An agent with more than one listing in a given community at the same time may provide a single statement that the community is in compliance. However, a future listing in that community will require an updated certification.

“Construction Status” field: This field is required if “New Construction = Yes.” Options are “Proposed,” “Under Construction,” “Complete,” and “Land/Home Package.”  “Proposed” means construction has not begun and there is no foundation. “Under Construction” means construction has begun and a foundation is in place but the CO has not been issued. The listing must be changed from “Proposed” to “Under Construction” within seven business days of the completion of the foundation. “Completed” means the CO has been issued.  For land/home construction packages as with custom-built new construction (and manufactured homes that are classified as real property), the “Construction Status” field must indicate “Land/Home Package.”

“Proposed Completion Date” field: The “Proposed Completion Date” field is required only when the listing agent selects “Under Construction.” Canopy MLS sends an automated email reminder to the listing agent to update the “Proposed Completion Date” when reached.

Mapping: Always ensure that the listing is mapped correctly in the MLS system. New construction listings can be difficult to map, especially if there are new streets being constructed that do not yet appear in the MLS system mapping. Even if the streets do not appear on the map, it is possible to edit the map location.

Custom-Built Homes: If the house-to-be-built is part of the listing agreement, but is negotiable, then the listing agent has the option to list the property under Lots/Acres/Farms and in another category such as  Single Family. If the property is listed under Single Family, then sold without the house-to-be-built, or vice versa (listed under Lots/Acres/Farms, then sold with the house-to-be-built) the listing should be withdrawn and re-entered under the appropriate category.

Custom-Built Construction Price Certification:  Closed listings of custom-built new construction (and manufactured homes that are classified as real property) can reflect the “Closed Price” for both the lot sale price and the new home in the MLS if the Custom-Built Construction Price Certification is attached to the listing at closing.

  1. If the seller of the lot and the builder are not the same entity, there must be an agreement, which provides that both the seller of the lot and the builder of the proposed construction authorize the Listing Brokerage to offer cooperation and compensation to the other Member Participants of Canopy MLS acting as subagents or buyer agents or in other agency or non-agency capacities defined by law.  
  2. For land/home construction packages, the “Construction Status” field must indicate “Land/Home Package.” 
  3. When entering a Comp Sale, the lot and the custom-built construction must be reported together.
  4. The custom-built construction listing must be reported as “Under Contract” by the listing brokerage in the MLS within two business days after the purchase agreement for the lot is executed between the buyer and seller.
  5. Never report a listing as “Closed” until after a closing has occurred.
  6. If the CO will be issued within 24 months from the closing on the lot, the listing may remain in “Under Contract” status, and must be reported as “Closed” within five business days after the listing agent receives notification that the CO has been issued by the building inspection department.  After 24 months, only the sale price of the lot may be reported.
  7. This form must be completed and attached to the listing, or only the sale of the lot can be reported in the MLS.
  8. Do not include any overages that were paid for outside of the construction contract price or final construction sales price from the final invoice. Items that are paid for “outside of closing” may be reflected in the Closed Price only if reflected on the HUD/TRID closing disclosure statement, the purchase agreement or the final builder invoice. Upon request, Canopy MLS staff will update the Closed Price on a Closed Listing if it meets this guideline, and add a statement to the MLS Staff Remarks with the date of the change. 
  9. Do not report a closed sale for the lot separately from the closed sale for the land/home construction package.  
  10. The “Market Value” may be reported as the Closed Price of the listing if the completed home was appraised by a licensed or certified appraiser; or
  11. The MLS listing can reflect the sum of the lot sale price and either: (a) the contract build price if reported as “Closed” within five business days following the closing of the lot purchase, or (b) the final construction sales price if reported as “Closed” following the Certificate of Occupancy and final settlement (a final invoice from the builder must be attached to the listing). 
  • 96
  • 31-Aug-2021
  • 2678 Views