Coming Soon – State of The Real Estate Market

Coming Soon – State of The Real Estate Market

So taking a look at January 2016 Stats for the Columbus Market, you will see, as either a buyer or a seller, the market has taken a decidedly sharp turn to a Seller’s’ Market. Why? The inventory has taken a dramatic shift towards the low end. We are seeing 1 to 2 months of inventory in many areas throughout Central Ohio. A neutral or “normal” market has 6 to 7 months of inventory for consumers to buy.

Fear of Missing Out

Fear of missing out has taken a death grip on a lot of Buyers. Agents have used this fear to push a Coming Soon marketplace. Coming Soon has been a long standing behind the scenes practice among many Realtors® to bring an edge to their marketing. Coming soon means that it’s not ready to list and the seller is fixing the home up to place on the market. Columbus Realtors® has created a new aspect of the Multiple Listing System to handle what was once a “hidden” market where buyers were combing and driving the much loved subdivisions looking for their next home.

Shedding Light on a Gray Practice

The thought about bringing this Coming Soon Market into the Multiple Listing System was to shed some light on a very gray part of the Real Estate practice. There have been accusations of backroom deals with eager buyers swooping on properties before they hit the market. There have been homes that have entered the Multiple Listing System without even having an active status but going straight into contract. Has this changed with the revealing of the gray market? I doubt it. This whole Coming Soon Marketplace just legitimizes the once very gray practice. It’s going to have growing pains and involve controversial situations before the birth pains subside. Is it a compromise? Yes. Is it the best solution? Not by far. However, it is a start.

My Take on Coming Soon

Homes are a unique product. No two homes are EXACTLY the same. There are always minor differences between even the same floor plan that will capture the imagination of one buyer on a particular property and turn off that same buyer on the same floor plan a few doors down. I fear that if Realtors® take on the thought process that homes are a commodity in the market that need to be marketed as a movie or a car, then we are not doing justice to the unique environment that is Residential Real Estate. In a Seller’s Market, Buyers are happy to see the latest listing once the home hits the market. They will flock to do so in a Seller’s Market. Coming soon is just a redundancy that creates an artificial hype over a property. Some agents will contend that this Coming Soon hype helps drive sales. I feel a unique home will drive its own sale and will command notice in a Seller’s Market.

Data to Sway My Opinion

I will be interested to see the compare and contrast of the homes that sold with Coming Soon and those who didn’t. Glorious thing – there will be data now with the Multiple Listing Service changes. I would welcome a change in thought. I just think that Coming Soon drives an unnecessary hype to a foregone conclusion in a Seller’s Market. The home is going to sell once it hits the market. Period.