You may wonder what is coming soon in real estate and how it works.
Over the past year, some clients have asked me what is coming soon in real estate marketing.
If you have paid much attention to the real estate market lately, you have probably noticed “Coming Soon” on the occasional yard sign or certain Zillow listings.
The coming soon real estate sign rider has become a prominent feature on many for-sale signs.
These properties can also be called “coming homes” or coming soon houses.
On the surface, the ‘coming soon’ can appear like any similar message referring to products for sale or businesses about to open.
However, regarding real estate listings, the “coming soon home” means several things the average buyer or seller may not know.
The argument is whether a coming soon home for sale has a place in the market. Some argue it can be beneficial for specific clients.
Many other real estate professionals believe the negatives far outweigh the positives for most clients.
Whatever the final word, sellers need to be aware of how coming soon may affect their sales so they can make an informed decision about how their home is marketed.
With thirty-eight years of experience selling homes, you would only want to market a house as a coming soon if all buyers had an opportunity to make offers. Maximizing market exposure through the MLS ensures that a property reaches the widest possible audience, contrasting with the limited exposure of “Coming Soon” listings without such exposure.
Let’s dive deeply into everything you need to know about coming soon homes for sale.
What is a “Coming Soon” Real Estate Listing?
A coming soon listing is a home that may not be added to the MLS or Multiple Listings Service. The standard of professional Realtors is to list each home for sale on the MLS to encourage healthy competition and ensure market data is as accurate as possible.
Listing on the MLS also guarantees unparalleled exposure for each listing because almost every buyer, seller, and Realtor uses the MLS. When you put your home on the MLS, the world knows your property is available.
The local MLS circulates new listings to millions of prospective buyers daily. The properties show up on the most visited home-buying websites via a feed.
Other terms to describe a coming soon listing include off-MLS listings, pocket listings, office exclusives, off-market homes, and exclusive listings. The most common description, however, is pocket listings.
While pocket listings remain off the MLS, “Coming Soon” listings provide a preview to potential buyers before officially hitting the market.
Understanding the Impact of Days on the Market
The concept of “Coming Soon” listings significantly impacts the Days on Market (DOM) metric. This can be a crucial factor in how potential buyers perceive a property’s desirability.
When a property is listed as “Coming Soon” in many states, the DOM counter does not start until the listing changes to active status. This strategy can be particularly advantageous in maintaining the property’s freshness on the market.
Prolonged DOM counts can lead to buyer skepticism regarding the property’s value or condition. By leveraging the “Coming Soon” status, sellers can generate interest. There will be less anticipation without the pressure of accumulating days on the market.
What is a Coming Soon Real Estate Sign?
Coming soon properties that have not officially hit the market are often marketed via real estate signage. You will likely see a coming soon sign adorned on homes as you drive around your city or town.
Riders will have “coming soon” on signs like the one in the picture above. You probably won’t miss these signs when limited properties are for sale.
“Coming soon homes for sale” will stick out like a sore thumb when you need to find a house.
The Right and Wrong Way of Coming Soon Real Estate Listings
When it comes to coming soon real estate, there is a right way and a wrong way to sell your home if you want the most money possible.
Coming soon real estate listings not marketed through the local MLS are blatantly disregarding what’s best for home sellers.
Real Estate brokerage firms that use a coming soon real estate sign, open houses, social media, and other means of advertising to procure home buyers in-house are not doing what’s best for their clients.
When the housing market is hot, these sellers lose out on the bidding frenzy accompanying many houses.
Yes, folks, the odds of a bidding war drop substantially, with real estate listings that have not been marketed correctly coming soon.
Instead of having maximum exposure, coming homes not on the MLS receive minimal publicity,
Homes Can Be Marketed as Coming Soon Real Estate Listings in MLS
Getting a head start on marketing is good, but there is a right way to do it: through the realty listing service (MLS). Most MLS boards around the country allow member agents to market homes with a coming soon status.
Typically, a home can be a coming soon listing for a certain number of business days before it becomes an active status. This time period usually ranges from 7 to 14 days.
When you sell your house, you want your real estate broker to market coming soon real estate this way. By doing so, all the buyer’s agents and clients will have a shot at selling the home. There is equal housing opportunity that will enhance your ability to put more money in your pocket.
Pocket listings with a coming soon real estate sign do not foster that outcome. There is no level playing field for all agents with potential buyers. More and more MLS boards have instituted real estate rules agents need to follow coming soon.
Coming Soon Real Estate Rules
The rules surrounding coming soon homes can differ from state to state and from one MLS board to another.
Generally speaking, to meet most MLS board rules, the property must meet the following conditions.
- The property must have a listing agreement signed by the seller and real estate agent.
- Sellers must agree to no showings while the home is coming soon.
- The listing hasn’t been for sale but will be soon.
- A coming soon home will be limited in how long it remains in the coming soon status. Most MLS boards have a limit of no more than 21 days, but it could be less.
Legal Considerations and Listing Agreements
Before using a “Coming Soon” listing strategy, sellers must understand the legal considerations and the necessity of a formal listing agreement.
This agreement, a binding contract between the seller and their real estate agent, outlines the terms under which the property will be marketed as “Coming Soon.”
This contract must specify the duration of the “Coming Soon” status and the obligations of both parties. This ensures compliance with MLS rules and state regulations.
Different MLS boards may have distinct requirements for “Coming Soon” listings. For example, showings and the time a property can remain in this status could be limited.
Familiarizing oneself with these rules can prevent potential legal pitfalls and ensure a smooth transition from “Coming Soon” to active listing status.
The Pros and Cons of Coming Soon Real Estate Listings
Let’s examine the pros and cons of coming soon homes.
Cons of a “Coming Soon” Listing
I will give you the cons of marketing your home as a coming soon listing, as I genuinely believe it does a disservice to many sellers who have not thought through the ramifications.
Often, fast-talking real estate agents who are looking out for their wallets and not what’s best for their clients convince consumers to try marketing gimmicks.
“Coming soon real estate listings” can undoubtedly be one of them.
It is another way some real estate agents trick home sellers with things that don’t benefit them.
When you sell a home, you’ll want to avoid real estate agents who do what’s best for themselves.
Most of the time, The National Association of Realtors members will not participate in activities that don’t serve the client’s best interest.
Realtors must follow what’s known as the code of ethics.
1. Limited Exposure
If you had the choice between advertising your home for sale in a neighborhood periodical or national television, both for free, which would you choose?
The national television, hands down. You know that exposure is critical to drumming up interest in your home. Letting a thousand people know about your sale vs. 1,000,000 people will produce different results.
The MLS is the place to list the homes most real estate agents and their clients use. Even with the rise in popularity of internet real estate sites like Zillow, the MLS is still the gold standard for marketing a home.
It isn’t easy to understand why most sellers would forgo the MLS. For most who do so, chances are they have no idea what is happening or what they are missing out on.
They trust their agent, which has steered them away from the standard real estate sales process out of self-interest. These agents circumvent the traditional selling process in hopes of a double commission.
2. Fewer Offers With Less Exposure.
While it can be fast and convenient to sell to the first person who inquires about a listing, most sellers are hoping for the best offer more than anything else. However, when a listing does not go on the MLS, it significantly reduces the number of people seeing it.
Instead of encouraging multiple offers for various parties, a “coming soon” listing ensures that only a limited number of potential buyers will be aware of the listing.
This is why so many for sale by owners fail – they have limited exposure instead of exceptional marketing.
Most sellers are hoping for a bidding war because it can drive the price higher than it would otherwise. While bidding wars are not always possible, a ‘coming soon’ home will lessen the chances of a bidding war happening with your property.
Multiple offers mean more money in your pocket – something you’ll probably give up if you let your real estate agent market your home as a coming soon listing.
Would you rather have one or five offers when selling your house in a hot market? The latter is how to get the best terms and conditions you want. You will probably leave money on the table by agreeing to market it as a coming-soon property.
If you want to command the most money for your home 'coming soon' marketing is NOT the way to do it!Click To Tweet3. You Risk Dual Agency.
Unfortunately, many real estate clients are unaware of the dual agency concept or its harmful effects. Dual agency benefits your Realtor, plain and simple. Do not expect it to help you.
The reasons are easy to understand. When you allow dual agency, your real estate no longer represents you exclusively. They become a neutral party in the transaction. By law, the agent can no longer advise you because they are a neutral party.
You have just lost your fiduciary in negotiating your most significant asset. Sounds great, right? You are paying your real estate agent quite a bit of money. The only person they should be representing is you!
If the agent finds a buyer for your home, two things should happen: The agent should either remain as a seller’s agent or refer the buyer to someone else.
Dual agency has been banned in some states because it’s a conflict of interest. In most sales, the seller wants to sell their home for the most they can, while the buyer wants to pay as little as possible.
How can a real estate agent work with both parties and satisfy conflicting goals? In short, they can’t! Don’t accept dual agency.
You’re also bound to hear from a less-than-ethical real estate agent that dual agency is not wrong. Unfortunately, the agents live by the mantra, “If it’s good for me, then it’s good for everyone else as well.” Not the kind of agent you want!
Not all coming soon listings will necessarily lead to dual agency, but they will create the ideal circumstances for it to occur.
4. Skewed Real Estate Appraisals.
One of the most insidious aspects of coming soon listings is how they can skew real estate appraisals. A real estate appraisal is based on selling similar properties in your area.
It is a vital part of the real estate process, allowing everyone to agree on the actual value of each home that is sold.
But coming soon, houses will often not be included in appraisals. Some banks won’t accept coming soon listings as comparable sales. The banks will not take them because they did not receive the same exposure as other homes.
As “comparable” suggests, coming soon listings are not comparable to other listings because of their minimal marketing.
It is possible they might not be considered an “arm’s length” sale if they were not available to the entire market.
Pros of a “Coming Soon” Real Estate Listing
1. Increased Privacy For The Seller.
When selling homes, a small percentage of the population will always oppose making detailed information about the sale public.
Not listed on the MLS does offer the advantage of increased privacy.
The seller can control who sees the listing because it is not going on the universally accessed MLS listing service.
The listing can only be shown to private groups screened by the listing agent or Zillow users.
Sometimes, a home may not be in excellent showing condition, and the seller only wants a select few to view it.
Celebrities sometimes prefer to keep their lives private and will market with less exposure.
2. Limited Foot Traffic Through The House.
Some clients prefer to have as little foot traffic going through their homes as possible. Limiting the number of potential prospects who can see the property guarantees fewer buyers will walk through the door.
If you want fewer people visiting your home, the best way to do it is through a more private sale, which is what coming soon listings encourage.
3. You May Get a Discount on The Commission.
Some real estate agents will offer to discount their Realtor commission if the home sells before it officially goes on the market.
Since the sale happens immediately, the agent profits and may agree to pass that benefit on to the seller.
The agent would not have the same marketing expenses in this scenario. Just be careful that the agent is not attempting to represent a buyer, which can create dual agency.
Your agent should remain a seller’s agent!!
4. There Might be a Buyer Who Has Always Wanted Your House.
Some homes in a city or town resonate with people. They will say to themselves, “If that home ever comes on the market, I want it!” It’s possible that there could be a buyer searching for a home to purchase, and you’re coming soon sign stops them dead in their tracks.
Seeing the “coming soon sign” may stop them from buying another home and missing out on yours.
5. The Listing Agent is Likely to be The One to Sell The Property (Pro For The REALTOR, Not Necessarily The SELLER)
The main benefit of a “coming soon” home is for the listing agent. By limiting the listing’s exposure, the agent almost guarantees they will sell the property.
Few other agents will learn about the property, dramatically decreasing the competition faced by the listing agent.
The potential for “dual agency” increases significantly, where the agent represents both the seller and the buyer of the property (if you allow it).
A dual agent cannot serve the best interests of both buyer and seller—the seller wants the highest sales price, and the buyer wants the lowest sales price—but can collect a double commission.
The benefits of dual agency are all for the agent.
What About Zillow Coming Soon Listings?
Zillow has also adopted the “coming soon” real estate listings feature. Agents who advertise with Zillow can use this feature on their platform.
Essentially, Zillow shines a bright light on those real estate agents who spend money advertising with them.
Zillow allows listings to be marketed as pocket listings for up to thirty days before they hit the market. All leads are funneled directly to the listing agent.
Again, this kind of marketing can disadvantage a seller for the unsuspecting homeowner who has placed trust in their real estate agent.
You are not only NOT exposing the home to the masses but dramatically increasing the odds of dual agency.
Every real estate agent’s goal should be to get their seller client the absolute best terms and conditions.
Coming soon, however, will circumvent that possibility in most cases. I would call it legal shenanigans!
An unexplained pocket listing hurts the client’s best interests. It is a self-serving marketing activity that benefits the listing agent.
The basis for the MLS has been freely sharing information with as many people as possible.
Exposure to the MLS ultimately leads to more eyeballs on a property, increasing the odds that the seller will get better terms for their home.
Of course, Zillow doesn’t care. From their inaccurate online estimates to posting properties that are not for sale, Zillow does whatever benefits them.
Do Coming Soon Listings Show Up on Realtor.com?
It depends on the MLS board in your location. In many states, these homes will soon have limited distribution. They might not appear on Realtor.com until the listing status changes to current.
How Do You Put Coming Soon Houses on MLS?
In most states, you must have the seller sign an authorization form to list a home with the coming soon status. Usually, there is a designated time frame for the paperwork to be submitted to the local MLS.
The form will also state when the listing will become active.
Can you Write an Offer for a Coming Soon Home?
Yes, a real estate agent can write an offer on a coming house soon.
Even though a property cannot be shown as yet in the coming soon status, a buyer can still submit an offer. A listing agent must submit all offers to sellers, no matter the circumstances.
A seller should always think twice about accepting an offer from someone who has not viewed it. Doing so could easily lead to the contract falling through.
Are They a Good Idea?
They can be excellent when done correctly according to local MLS rules. When done to limit the seller’s exposure by an unethical agent, they can be disastrous.
Never fall for a coming soon listing without following the proper legal channels.Click To TweetA Better Marketing Strategy Than Coming Soon
Most homeowners who put their homes on the market look to maximize their net proceeds from the sale. One of the best ways to do so in a seller’s market is to defer the showings.
By delaying the showings, you list your home for sale in the MLS but don’t let buyers in the door for a certain amount of time, typically 4-7 days.
By doing so, you are getting the word out to all the buyers. You avoid the buyer who looks at the home immediately and makes an offer that first day. While the bid may be solid, the seller misses out on other buyers who may also have been interested.
By deferring showings, you dramatically increase the odds of having multiple offers and a bidding war on the property. You are allowing all the buyers in the marketplace to see the house.
By following the deferred showing strategy, you can also put up your coming soon for sale sign the day the home enters the MLS. Thus, you are getting the best of both worlds.
So, to be precise – coming soon, properties are NOT the same as deferred showings.
Laws are Trying to Catch Up With Coming Soon Marketing
Many states and counties are trying to adapt to coming soon properties. Laws are being implemented that require realtors to discuss the realities of the upcoming listing and verify that the seller is still interested in limiting the marketing of their home.
These laws are designed to force agents to act in the best interests of their clients. They should choose a coming soon real estate listing because it will accomplish their client’s goals—not because it works to their benefit.
The fact that laws are being implemented to force these agents to do their duty makes it clear that “coming homes” are of questionable value.
There may be situations where it fits, but in most sales, it is not the best option if the client wants the best price for their home.
In fact, some MLS boards have already made coming soon listings illegal. I would not be surprised if more followed suit.
Coming Soon Homes For Sale Near Me
So, how do you find a home for sale that is coming soon? Of course, you want to have your real estate agent keep their ears to the ground on any new listings.
However, you may want to do some research on your own. You can do a Google search for properties that are not on the MLS yet.
Try “coming soon homes for sale near me.” You might get lucky and find a property that interests you.
Final Thoughts
Failing to act in the client’s best interest and not discussing the pros and cons of a limited marketing plan, such as ‘coming soon’ advertising, can violate state real estate license laws and regulations, MLS policies, and the Realtor Code of Ethics.
These behaviors give real estate agents a bad reputation and sully the industry as a whole.
Every client deserves to see the whole picture regarding any marketing strategy. Often, a pocket listing may not lead to optimal results.
The bottom line is real estate agents should always look for what’s best for their clients, not themselves.
Additional Helpful Home Selling Resources
- Maximize your curb appeal before selling—Lynn Pineda can provide helpful guidance on making your property look its best before hitting the market.
- Spring home selling advice worth reading—if you sell a house in the spring, you will enjoy these tips from Luke Skar.
- What stays and what goes in a home sale – When you sell your property, it is essential to understand what is a fixture and what isn’t. Learn what to know via Paul Sian.
- Best projects when selling your house—specific improvements make a difference when selling a home. See what they are via Petra Norris.
Use the above home selling resources to make the best decisions when selling your home. Each article comes from a top real estate expert in their respective market.
About the Author: Bill Gassett, a nationally recognized leader in his field, provided information on coming soon real estate. Bill has expertise in mortgages, financing, moving, home improvement, and general real estate.
Learn more about Bill Gassett and the publications in which he has been featured. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. For the past 38+ years, Bill has helped people move in and out of Metrowest towns.
Are you thinking of selling your home? I am passionate about real estate and love sharing my marketing expertise!
I service Real Estate Sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge Massachusetts.
