Well, about a month ago I posted about Coming Soon. I was happy last month because I thought that everyone who had a coming soon sign in the yard had to be put into the Multiple Listing System. Turns out – I WAS WRONG! You can have a Coming Soon sign and no listing in the Multiple Listing System OR have it in the Multiple Listing System as Showing Start Date. There still is a gray market people! Buyer and Seller beware!
Sellers, I have yet found this pre-listing to be an advantage for you. It is better in my opinion to wait to actually List the property. Offers prior to listing does NOT necessarily mean you will receive the BEST price. I’m all about getting as many offers on the table as possible to get the best offer for you, the Seller. I like competition and you should too.
Buyers, I’m sorry this market totally stinks for you. Be prepared for multiple offers. Also, be cautious about the Coming Soon sign. Make sure you are always represented by another Realtor®. Dual agency with the same Realtor® can be tricky. It can be done; but, beware of the human component – a.k.a. greed.
Keep yourself safe and be sure you gain a trusted resource to help you with your Real Estate transaction!
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.
Why Use a Realtor® to help you with a Builder?
What are some examples or real life experiences which illustrate how using a Realtor helped your client when dealing with a builder?
- Realtors can talk to the builder rep as an equal and not as a customer. A builder told me that a spec home they had was built for $450k and we were getting it for $416k plus $10k in appliances. With that information, which they were hesitant to share with the buyer, I was able to let the buyer know how great a deal they were getting.
- Like in any negotiations, Realtors aren’t emotionally involved. Realtors listen to the client and are able to go back to the builder rep with a less emotional response. It’s a good buffer.
- Realtors can explain “acts of God” in terms that the buyer understands. I assisted in the purchase of a home built in 2014 during the worst weather. I called the City of Hilliard to see when permits were going to be granted and they also said that nothing was going to be done. It was a great way for me to “do something” and get confirmation of information that the builder had provided.
All in all it’s not about picking out colors, trim, and flooring. It’s more about handling the building process and unexpected hiccups. Being the researcher and reporting back. Giving an unbiased opinion. Being a buffer in a highly stressful situation.