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Seven Perils of "Coming Soon" Promotions

Seven Perils of "Coming Soon" Promotions

Seven Perils of Promoting “Coming Soon” ….

 

CMMLS does not have specific rules pertaining to the marketing or promotion of property that is not in MLS with ONE exception. MLS Participants are required to either enter a listing into MLS within 24 hours of having the signed listing agreement OR provide the MLS staff an EXEMPTION signed by the seller indicating the seller does not want MLS exposure.

 

This EXEMPTION provided to the MLS staff protects the MLS Participant or Subscriber from violating the 24-hour rule.    It is assumed that you would not be marketing or promoting a listing as “coming soon” without the protection of a signed listing agreement and acknowledgement from the seller of the risks of limited exposure promotion.

 

The definition of “Coming soon” means the property IS NOT on the market.  If it’s NOT on the market, Brokers need to use caution and not “cave”, allowing a property to be shown by ANYONE before it is made available to the widest audience.

 

7 Perils of “coming soon” promotion:

  • If a property is being promoted, but can’t be shown, you might be putting yourself at risk of violating Article 3, Standard of Practice 3-8 of the REALTOR Code of Ethics that prohibits REALTORS® from misrepresenting the availability of access to show or inspect a listed property.
  • It may not be in the best interest of the seller. If the risk of limited exposure rather than the benefit of wide exposure is not thoroughly explained to the seller, he/she might determine that his agent failed to perform fiduciary obligations. It’s about what’s in the BEST interest of the seller as well as being about the obligation MLS Participants have to “cooperate” with other brokers, when cooperation is in the best interest of the seller. Wide exposure of MLS is generally in the seller’s best interest.

 

  • A property promoted to exclusive groups, including social media marketing rather than to the full market via MLS, might be seen as an attempt to discriminate putting a licensee at risk of violating Fair Housing laws.

 

  • If a contract is accepted while the property is “coming soon” before it is entered into MLS it is a “private sale” and cannot be entered into MLS. Cooperation was not offered other MLS Participants.   An exception allows you to enter it into MLS if it is CONTINGENT so long as cooperation and compensation are being offered cooperating brokers and the seller is soliciting back-up offer.

 

  • It gives the impression that that the listing broker is acting in bad faith and attempting to create a situation where his/her own agents show the property before anyone else.

 

  • It creates animosity among other REALTORS against the listing broker when their clients can’t see the property. Your reputation should be paramount to self interest.

 

  • Prospective purchasers who do not yet have an agent perceive “coming soon” as ploy agents might use just to get names of folks looking for homes to the detriment of the seller. Again reputation….

 

MREC has received several complaints relative to “coming soon” from licensees as well as prospective purchasers who could not see the property.