Yes, Coming Soon hurts home sellers! Home Sellers, don’t make the mistake of allowing your REALTOR® to put a Coming Soon sign on your property. Smart home sellers will get what I’m about to share, others unfortunately, will not.
Zillow recently came up with yet another strategy to hook users in, especially money hungry real estate agents and new agents who don’t understand the BIG picture, Coming Soon! This just gives Zillow yet another advertising tool to eventually gain revenue from real estate agents. Coming Soon is also many times referred to as Pocket Listings. Oh, if you didn’t know Zillow and Trulia do NOT get the houses for sale in Sacramento, Placer, Yolo or El Dorado County since they will not abide by Metrolist rules to keep data updated and they want to own all the photos of home seller houses. So, Zillow and Trulia are definitely NOT good places to look for a home for sale since they don’t even have all the homes for sale. But, I digress…let’s get back to Coming Soon.
More REALTORS See Your House Is Best For Home Sellers
So, just what is all the hoopla about? First of all home sellers need to know and understand that our Metrolist rules prohibit advertising a house for sale prior to placing on MLS. This rule is for the benefit of the Home Seller to make sure a house is advertised to the masses of realtors and not just to those who happen to drive-by or happen to look at an agent’s website. Obviously, it isn’t rocket science, the more Realtors who know your house is for sale, the more times your house will be shown to prospective home buyers. And, it’s a proven fact the more your house is shown, the better chance you have not only of selling but more than likely the home seller will sell for more dollars. Pocket listings. coming Soon homes are shown less and if they sell, sell for less since Realtors who are working with home buyers don’t know your house is for sale since it’s NOT on Metrolist.
A good REALTOR®, does not use Coming Soon or Pocket Listing gimmicks since they actually have their home seller’s best interest at heart. Today, I spoke with the Sacramento Metrolist about this very subject and found out there are law suits where home sellers are suing their real estate agents who did not market their home for sale on Metrolist but used the Coming Soon, Pocket Listing approach. Recently, Hudson Sangee of The SacBee wrote Coming Soon Signs May Not Be in Home Sellers’ Best Interest.
Home Sellers may ask, “why can’t I use the Coming Soon sign and when my house is ready, have my agent put the house for sale on Metrolist?” The answer is no, if you use the Coming Soon sign, Metrolist will not allow your real estate agent to place on the house for sale on Metrolist, The RULE is NO advertising prior to being put into Metrolist, This also means if the house sells, it won’t be part of the neighborhood comps, either. So, a real estate agent who tries to convince home sellers to let them use a Coming Soon sign to drum of business, should decline.
Home Sellers might ask why would a real estate agent promote Coming Soon Signs or Pocket Listings to their home sellers. Good question! GREED. Most home buyers who call from signs are not even qualified to purchase the house they are calling about. But, this gives the real estate agent a new buyer to work with to find a different house. So, at your expense, the real estate agent gets more business. Unless your house is a real dog it will sell so the agent will make their money. Could the real estate agent and you, the home seller have made more money if your home had been in Metrolist, yes but some real estate agents don’t see the BIG picture and they think they will get tons of business from all those home buyers who call based on the Coming Soon who are not qualified to buy your house but could possibly buy a different house. So, the only looser really is the home seller! Attorneys who wrote the CA Listing Contract made a point of letting home sellers know keeping your listing off Metrolist is not in their best interest. Time for home sellers to get educated…know and understand what Coming Soon, really means!
Realtors Report Coming Soon
Yes, since advertising a home for sale before it’s on MLS is against the rules, a REALTOR® who sees a Coming Soon sign in front of a house, is to report it to Metrolist. Once the sign is reported unfortunately the home seller will not be allowed to advertise on MLS to thousands of Realtors and Buyers.
Little Known Real Estate Fact
If by some quirk of nature the listing agent sells the house they have listed as a Coming Soon, Pocket Listing to a Buyer then they “double end” the deal, meaning they represent both the home buyer & home seller getting paid both commissions. This becomes more of an incentive for the listing agent when the seller wants to pay a low commission at the time of the listing. The real estate agent ends up making a decent commission in the end when they get a double commission. Once again, it’s the home seller that looses since their home was not exposed to all the real estate agents working with qualified buyers for the house for sale they never knew about and the home seller might have received more money. Not to mention that more real estate law suits come about due to dual agency, when the listing agent also represents the buyer. Be sure to read my article on Double Dipping in real estate.
Doing things the RIGHT way, is always best! That’s what we do at Riede Real Estate!