Understanding Coming Soon Real Estate in Massachusetts Home Sales
Author Bill Gassett owns Maximum Real Estate Exposure.
Whether you are buying or selling a home, you have probably noticed for sale signs that have riders saying "coming soon." Have you ever wondered exactly what that meant?
Did you stumble upon a “coming soon” listing while searching for your dream home? If so, you might wonder, “What does ‘coming soon’ in real estate mean?”
A current topic of discussion among real estate experts is using "coming soon" property listings. Some professionals argue that they can be advantageous for specific clients, but others stand firm in their belief that the downsides outweigh any potential benefits.
The debate surrounding coming soon real estate listings may have differing opinions, but there is a unanimous agreement that sellers must be informed about their impact on home sales. Without having a complete understanding, you could make a critical marketing mistake.
We will cover everything you need to know about coming soon real estate, including the pros and cons of a home seller.
What Is a Massachusetts Coming Soon Home For Sale?
"Coming Soon" homes for sale are properties that are not yet listed on the market for public view. They are exclusive listings only available to real estate agents and their clients. These properties are typically in the pre-listing stage, and the agent is working on preparing them for sale.
They also can be homes that are officially available to be viewed but are not yet on the MLS or never will be. The real estate industry often refers to them as pocket listings.
There is a Right and Wrong Way of Marketing Coming Soon Homes For Sale
A "coming soon" listing is a property not yet available on the Multiple Listings Service (MLS).
While it is standard for professional Realtors to list every home for sale on the MLS, "coming soon" listings can break rules and harm a seller.
This type of listing is meant to generate buzz and anticipation for a property before it officially hits the market. However, it's important to note that sellers want to ensure it does not limit their exposure to the entire real estate market.
Listing on the MLS guarantees sellers unparalleled exposure because almost every buyer, seller, and Realtor use the MLS. When you list on the MLS, the world knows your home is for sale.
The local MLS circulates new listings to millions of prospective buyers daily. Listed homes appear on the most visited real estate sites via a feed.
However, if a real estate agent puts out a sign advertising a home for sale without adding it to the local MLS marked as coming soon, a great disservice is being committed against the seller.
A real estate agent could generate buyers coming directly to them without the entire real estate market knowing the home is for sale. This would dramatically limit the exposure for the seller.
Limited exposure means getting fewer offers and a lower sale price. A common denominator in the real estate market in Massachusetts over the last few years has been bidding wars.
When a home is not exposed in MLS, the chances of having one are nearly eliminated.
The Agent Wins, and The Seller Loses
When homes are marketed as coming soon improperly, the only winner will be the listing agent. The chances of a buyer going directly to the listing agent increase without the seller reaping the benefits of all the rest of the buyers in the marketplace.
If the real estate agent practices dual agency, the seller will be put at an even greater disadvantage. They will lose their representation and have an agent with a vested interest in seeing the transaction close at any cost.
Dual agency is illegal in several states but not Massachusetts.
The translation is a big win for the real estate agent and a BIG loss for the seller.
You Can Market a Home as Coming Soon But Make Sure It's Also in MLS
There is nothing wrong with marketing your home for sale as long as it is done in your best interests. It should concurrently be put in the Multiple Listing as coming soon, so the entire market knows it will be available shortly.
As a real estate agent, it is important to act in the best interest of your clients. Failing to do so and neglecting to discuss the advantages and disadvantages of limited marketing strategies like "coming soon" advertising can violate state real estate license laws and regulations, MLS policies, and the Realtor Code of Ethics.
It is crucial to stay informed and follow these guidelines to maintain professional and ethical conduct in the industry.
Real estate agents should prioritize their client's best interests over their own. It's essential to provide clients with a clear understanding of any marketing strategies, including the potential drawbacks of pocket listings.
Behaving to prioritize personal gain over clients' well-being can damage the industry's reputation.
Did you enjoy this advice on coming soon real estate in Massachusetts? See other real estate articles on NewsBreak for more timely tips and advice. Bill often writes about general real estate, mortgages, finance, moving, and home improvement.