Negotiations are taking place in the real estate industry that could change the financial agreements made between real estate brokers and their clients. These potential changes could also alter the way transaction data is collected and reported within the technology systems that support businesses and consumers.
This guidance from the Real Estate Standards Organization (RESO) is focused on one specific set of data elements that have been part of recent discussions: concessions-related fields in the RESO Data Dictionary.
RESO Guidance
Concessions fields in the RESO Data Dictionary are in the Closing Group, data elements intended to describe facts that occurred at the closing of a transaction, not offers of potential financial agreements prior to close.
Background: Closing Group
Relevant Data Dictionary Closing Group Fields
- Concessions Field (Pick List: Yes, No or Call Listing Agent)
- ConcessionsAmount Field (Data Type: Number)
- ConcessionsComments Field (Data Type: String; i.e., a text field)
Current Concessions Fields in the Closing Group and Valuations
The data recorded in Closing Group fields has historically been utilized in appraisal valuations and Comparative Market Analysis (CMA) reports.
The ConcessionsAmount field definition states that the net value of concessions by a seller are often subtracted from the final sales price by appraisers and other property valuers to create an adjusted final value.
Ensuring that this data is recorded consistently is important to continue providing quality information to professionals and consumers evaluating properties.
Financial Offers in Active Listings
There are many discussions about how financial offers in active listings may change. RESO’s Closing Group concessions fields are not intended for this purpose.
Organizations leading the navigation of potential changes in industry practices include the National Association of REALTORS® and Council of Multiple Listing Services, as well as the associations, MLSs and brokerage businesses that they serve. These organizations will provide guidance for the best ways to implement new potential practices.
If new distinct data fields are needed to support business practices, organizations can create their own custom local fields for those needs. Custom local fields can be compliant with RESO certification if they are not in conflict with existing RESO standards.
If and when potential changes for industry practices are confirmed, RESO will support the efforts of our member organizations to create new standardized data elements that will deliver information accuracy, clarity and efficiency across marketplaces.
