Coming Soon?

First let's define the phrase “coming soon”…

Merriam Webster defines coming as: “an act of arriving”… and soon as: “a time which is not long from now”. So we speculate Coming Soon in real estate could be defined as: “A property which will be arriving on the market not long from now”.

The difficulty rests in the fact that every agent, buyer, and seller could have a different definition of “not long from now”…

For this article we will be referring to rules, regulations, and laws pertinent to the Triangle MLS Region of North Carolina.

The recent rise in the use of Coming Soon signage has raised good debate from both sides of the argument. On the one side, the listing agents say the use of coming soon marketing is good for the seller and creates activity prior to the actual “go live” date in MLS. They feel it is good PR for the property and works buyers into a frenzy… clamoring to be the first to present an offer on the property before it goes to the open market.

On the opposite side many agents feel it’s all a smoke and mirrors scheme of the listing agent to attract buyers for a “double dip” transaction. They feel it confuses the buyer, seller, and agent alike…in which the listing agents allow only those buyers they want in early for a “sneak peek” only to take offers and activate in MLS after they have an accepted offer in hand.

I hope and pray no listing agent would ever abuse the system and bend the rules to benefit their own bank account. Just to clarify….here is a link to the rules agents in the Triangle have to follow concerning coming soon signage. http://www.trianglemls.com/default.cfm/page/725
It is pretty simple and straight forward with 2 choices….#1) A “withheld” listing where the Listing Agent can show the property to prospective buyers without the listing being in MLS or #2) A “Temporarily off the Market” Status where no showings can occur.

In either instance coming soon needs to be defined, (and disclosed), in writing to potential buyers and buyer agents as to when the property will be available to be shown.

Here-in lies another problem….The NCREC has some conflicting regulations:  The NCREC cautions licensee’s in the May 2013 NC Real Estate Bulletin against the use of coming soon marketing and possible misrepresentation… specifically begging the question, is the consumer confused by the term “coming soon”?

The Commission sees coming soon as advertising… (No different than a For Sale yard sign or an internet posting) …where the agent and company hold themselves as being an authorized agent of the Seller. The NCREC Rule A.015 requires a written agreement prior to performing any brokerage services to a seller in any capacity.  (any being the operative word)

If the brokerage agreement authorizes the broker to begin marketing or promoting the property before it is ready to be shown…then the broker must disclose in any marketing materials, (in writing), that the property is unavailable to be shown and must disclose the anticipated date it will be available for showing.

Many also question Coming Soon marketing inability to hold up to the NC Law of Agency…

Is it really in the best interest of the seller? Coming Soon marketing removes the property from the best source to get the listing in front of the most buyers…The MLS… and by default, the internet….

No matter which side of the argument you are on…the best way to get the highest price and best terms for the seller has always been to have it on the open market for all potential buyers to view.  Coming Soon marketing limits exposure for a period of time…Even if an acceptable offer does materialize…is it the best offer the seller could have received had the property been exposed to all buyers looking for comparable properties? You be the judge…and I hope your answer never lies in the hands of a JURY!

Eddie Brown© 2013