Last updated on August 2nd, 2023 at 07:07 am
Are you curious about what “coming soon” really means in real estate? It’s a term that’s been thrown around quite a bit lately, and it can be tough to decipher what it really means for buyers and sellers alike.
We will explore the meaning behind this listing phrase in real estate and the benefits and drawbacks of using this listing strategy.
We have also answered some frequently asked questions to help you understand how to put your property in “coming soon” status on MLS.
Stay with us as we unravel the mystery surrounding “coming soon” listings!
What does “coming soon” mean
In the real estate industry, “coming soon” refers to a residential property that is not yet ready for viewing or purchase, possibly due to ongoing renovations.
Agents may use this as a marketing strategy to generate hype.
This can apply to apartments, a condo, or even land.
However, legal restrictions may apply in some regions when promoting a property as “coming soon.”
Benefits of using “coming soon” home listings
Though not without drawbacks, these types of real estate listings remain a valuable tool for real estate professionals.
These listings create buzz and interest among buyers and allow sellers extra time to prepare their property for sale.
However, they also come with risks such as limited exposure and the posssibility of dual agency. Not everyone can see these types of listings.
Despite these cons, they are still considered a best practice in the industry by many real estate professionals.
Increased privacy for the seller
When sellers mark their property as a “coming soon” listing in real estate, they gain increased privacy and control over showings.
By limiting access, they keep their home secure while generating excitement among potential buyers.
This strategy can help sellers prepare their home for sale before making it available on the open market.
And it can make selling a property easier.
Realtors can use tools such as pocket listings and email blasts to reach potential buyers early and ensure they are well-informed when deciding to make an offer.
However, this strategy does come with some drawbacks such as less exposure and fewer offers.
Limited foot traffic through the house
Limited foot traffic through the house during this time helps maintain its pristine condition for showings while allowing time for necessary repairs or renovations.
This tactic can attract serious buyers who are eager to make an informed decision before others have access to it in open market listings.
Scarcity can be a big motivator for buyers.
Potential to receive a discount on commission
When selling real estate properties, creating urgency and exclusivity is essential. Using “coming soon” listings does just this.
Moreover, this strategy offers potential buyers {who aren’t represented] a chance to purchase properties at discounted commissions while keeping the seller’s best interests in mind.
However, adhering to local rules is mandatory for agents to avoid disciplinary action while considering ethical practices.
In addition, integrating pocket listings with a broader marketing strategy ensures that a property’s exposure remains optimal.
These latter types of homes attract buyers who pay cash for homes.
Possible interest from buyers who have been searching for your property
Generating buzz and excitement for your property prior to it officially hitting the market is the best way to grab people’s attention.
A “coming soon” status on MLS allows you to connect with potential buyers even before opening the property up for showings.
Remember, the multiple listing service allows realtors to research properties and developments in any area in a market.
Using this strategy can give you an edge in today’s seller’s market, where there are more buyers than sellers and this type of data is highly sought after.
The can create bidding wars, which helps the seller gain more money and sell their house fast!
Listing agents can use email or social media to create a sense of exclusivity and urgency among interested parties.
Listing agent likely to sell the property
Using “coming soon” listings is the best way for listing agents to sell properties quickly and at higher prices.
Sellers can limit access while creating a sense of exclusivity and urgency among buyers.
However, they should follow local regulations.
A pocket listing or “coming soon” status on MLS keeps the property off-market but still visible to potential buyers who schedule tours through their realtor or brokerage email.
Drawbacks of using this type of listing
While using coming on the market soon real estate listings, consider the drawbacks associated with them.
One of the most significant cons is that such listings limit exposure to potential buyers actively searching for properties and create false expectations that might disappoint buyers.
Additionally, these listings may reduce the ability to receive offers from interested buyers, making it hard for homeowners to get a good deal.
Therefore, real estate agents must use other alternative marketing strategies and not just rely on coming soon status.
Limited exposure and offers
Limiting exposure to potential buyers is one of the drawbacks of using “coming soon” real estate listings.
It can prevent buyers from discovering your property if they’re actively looking for homes.
Fewer people viewing your property could lead to fewer offers and a lower selling price.
Moreover, some brokers use these listings as a marketing tactic to generate interest without having a specific timeline for when the property will be available for sale.
This approach doesn’t benefit clients’ best interests.
Risk of dual agency
When sellers use “coming soon” listings to market their property before it goes live on MLS or other real estate platforms, buyers may contact the listing agent directly.
This increases the risk of dual agency where one agent represents both parties.
MLS rules may apply.
Dual agency can create conflicts of interest for the involved parties and may not be in their best interest.
Thus, it’s recommended to work with reputable realtors or agents who prioritize transparency while avoiding conflicts of interest.
Skewed appraisals
A “coming soon” listing in real estate can have drawbacks for sellers, including the potential for skewed appraisals.
Appraisers may not be able to accurately assess the value of a property that is not yet listed on the market and has limited information available.
Additionally, bidding wars and inflated prices are associated with these listings can further complicate appraisals.
Homeowners should be aware of these cons when deciding whether or not to use a “coming soon” listing service.
How to put a property in “coming soon” status on MLS
When putting a property in “coming soon” status on MLS, it is important to understand the rules and regulations set by your local Multiple Listing Service (MLS).
To effectively market your listing as a pocket listing, ensure that your property is ready for showings by using high-quality photos and descriptions.
Consider creating excitement through social media or email campaigns to attract potential buyers.
Limiting the duration of this listing type can create a sense of urgency among potential buyers in a seller’s market.
It is a priority for real estate professionals to prioritize their client’s best interests when using this strategy while avoiding dual agency or disciplinary action from consumer protection laws.
Frequently asked questions
If you’re a buyer or seller in the real estate market, you may have questions about listings. Here are some answers to some of the most frequently asked questions about this type of listing status:
What are the benefits of using
Using a “coming soon” listing can create anticipation among potential buyers and generate early interest in the property
How long does it typically last
Some MLSs allow a property to be in the “coming soon” status for up to 21 days, while others limit it to just 7 days.
How is this type of listing different from an active listing
A “coming soon” listing is not yet officially on the market, while an active listing is actively being marketed to potential buyers. It generates enthusiasm and interest among potential buyers before the property is actually available for showings.
Can buyers make offers on “coming soon” listings
Buyers typically cannot make offers on “coming soon” listings since the property is not yet officially on the market. However, a buyer’s agent can submit a letter of interest to the seller’s agent, expressing their client’s desire to purchase the property once it becomes available for showings.
Is there a chance they may miss out on purchasing the property if they wait until it’s actively listed
While there is a chance that a buyer may miss out on purchasing the property if they wait until it’s actively listed, expressing interest early on can increase their chances of being first in line to make an offer.
By understanding how these listings work, both buyers and sellers can make more informed decisions throughout the home buying and selling process.
Final Takeaways
“Coming soon” listings have become a popular option in the real estate market.
They offer sellers increased privacy and limited foot traffic through their home while still generating interest from potential buyers who have been searching for their property.
Additionally, there is the possibility of receiving a discount on commission and having the listing agent likely to sell the property.
However, there are drawbacks, including limited exposure and offers, risk of dual agency, and skewed appraisals.
If you are interested in getting an offer on your property before putting it on MLS or have questions about this strategy, get an offer from us today.