A number of states and provinces are experiencing unprecedented low inventory levels. Nothing to buy and demand at an all-time high has caused a new and interesting challenge for the listing and buyer agents in the marketplace. Listing agents can’t get all the marketing they promised the seller they would do completed in time for it to hit the market and it is sold which is putting pressure on listing commissions and the listing agent losing the ability to spin more business off of their listing inventory.
The buyer agents are frustrated with the listing agent moving too quickly and taking an offer too soon and not allowing enough exposure to the market and allowing all buyer agents to write an offer on the new listing even if it is in a competing bid. With these new challenges in the marketplace, we have started to see the coming soon listing strategy being used by listing agents and their listings. So what are the benefits to a Coming Soon listing marketing strategy? It is important you consult with your local board and brokers to ensure you follow what is allowed in your local trading area.
Benefits to the Seller of a Coming Soon Marketing Strategy
1) The marketing is getting done and in place with more pre-listing marketing time
2) Allows more time for market exposure to buyers and buyers agents
3) Increases the chance for a multiple offer bidding situation
4) Allows everyone a chance to bring an offer to the table
5) Saves the seller time with it selling faster
6) Generates the seller more money
So how does this Coming Soon marketing strategy work you ask? So let’s say for example we meet with the seller on a Monday and agree to all the terms and conditions for listing their property. I recommend we take an exclusive listing for the pre-listing coming soon marketing period to ensure the neighbor or competing agents don’t just knock on the seller’s door and sell the home prior to the activation of the MLS listing contract. We place a sign on the property on Tuesday that states the property is coming soon to the market but does not have conflicting messages on the sign like “for sale” or “MLS” while it is being marketed as coming soon property. Then on Wednesday, we post a coming soon announcement to our database and agent peers via email, Facebook, and flyers.
On Thursday I flyer the neighbors and Friday I follow up the neighbors’ flyer with a door knock asking if they know of someone who may be interested. Saturday we host a public and agent open house and Monday morning the MLS listing contract is active and the property hits the MLS system and hope for multiple offers in the next few days. In a perfect world, the seller is patient and the property receives multiple bids and sells well above asking price. Sometimes we hear of buyer agents presenting “bully offers” which are offers that come in prior to the property hitting the market and the MLS system.
We are obligated to present these “bully offers” and the decision to accept or wait is completely up to your seller. My suggestion is if the seller chooses to take an offer prior to it hitting the market and the MLS system you get in writing they chose to accept an offer prior to protect us from it looking like we the listing agents forced the seller’s into an early decision. So the debate of whether the Coming Soon marketing strategy is good or bad is definitely up to you and your client to decide but being aware of how the game is being played slightly different than what we are used to is something we all should be aware of. Reach out and let me know some of your personal experiences with this type of marketing in your own marketplace, would love to hear from you!
Strength and courage,
Wade
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