With the rise of Coming Soon listings on the market – Should we fall in line or fight the trend?
Updated: May 2, 2022
Let’s look at some of the Pros and Cons of these newly trending listings.
If you don’t already know what “Coming Soon” listings mean, basically, these types of listings are properties currently under a listing contract but are not available for showing or sale until a later date. They are not the same as a pocket listing which is when a property, under a signed contract with a seller, is never advertised nor entered into the multiple listing system (MLS) or the advertising is limited. Coming Soon listings can be a legitimate advertising technique, allowing sellers more time to complete repairs, pack, or otherwise prepare the property for showing or sale– however, for it to be truly legitimate these listings should be unavailable until the specified date. This is where the agents and buyers toe the line into the gray areas of what constitutes a legitimate Coming Soon listing. See the end of the article for more information.
Allows market attention and interest from the public and agents while the seller does preparations on the property.
Increased privacy and limited foot traffic in the seller’s home.
MLS will backdate to the original Listing Date, so it shows the full elapsed time on the market.
Limited exposure. If it pulls in potential buyers prior to an active MLS listing, there will be limited exposure which means a reduction in competition.
Can skew real estate appraisals – since “Coming Soon” homes are not included.
Agents may use a home as bait for buyers without representation so that they can double end a real estate transaction.
Best Practices for legitimate Coming Soon Listings
Only properties under a signed listing agreement
Comply with all state licensing laws and regulations
Have a compelling reason that this tactic is in the best interest of the client
Have the clients’ informed consent in a thoroughly documented written agreement
Restrict showings and bids equally to all potential buyers
Comply with MLS rules and regulations
If your buyer clients are looking at properties that fall under the “Coming Soon” umbrella you and your clients should be on the watch for potential red flags such as: no signed contract, no permission or consent from the sellers’, no logical reason to be marketing this way such as repairs, are being actively shown to buyers, or offers are being accepted. If you see any of the following, then these are pocket listings under the guise of a coming soon listing. Not to say pocket listings are unethical or not valid if all parties being represented are fully in the know.
If your seller wants to do a “Coming Soon” listing, you will want to ensure they are made aware of all the advantages as well as possible drawbacks. Since most homeowners when putting their home on the market are expecting the most net income from their sale its best to ensure that all aspects of the marketing plan are in the best interest of the clients and that there is a logical, reasonable explanation of holding back from the public.
Another practice which may be used instead is the deferring or delaying showings until a later date. When deferring showings, you create an active MLS listing that serves in getting the word out to potential buyers, but instead of having showings on day 1 you defer anywhere from 4 to 7 days. This increases attention while also providing opportunity to all buyers in the market to see the property. Allowing more of the public to see the property increases the potential for multiple offers and a possible bidding war. By following the deferred showing market strategy, you can put out the “Coming Soon” for sale sign on the property the same day as the MLS listing is entered. This may just be the best of both worlds if your clients are truly wanting to build the extra anticipation.
Whichever way you decide to go – with the crowd or against the grain when it comes to Coming Soon, make sure you are always promoting and protecting the best interest of your client. Ensure that you discuss and disclose all pros and cons of limited marketing strategies so that you are in compliance with all state real estate laws and regulations, MLS policies, and the Code of Ethics. If you need assistance with buying or selling a Coming Soon property REeBroker Group’s mentorship program can walk you through each and every step!
For more information see the website or contact the main office at (760) 722-3222 firstname.lastname@example.org.
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