“Coming Soon” or “Not in MLS” listings are all over the Kansas City market. Here’s the information you should be getting from your listing agent before agreeing to do this.
What’s a Coming Soon listing?
A Coming Soon listing refers to a property that is not available for showing or sale until a later date. “Coming soon” can be a legitimate advertising technique, allowing the owners more time to complete repairs, pack, or otherwise prepare the property for showing or sale. A legitimate Coming Soon listing should truly be unavailable for purchase or showing.
Sometimes, however, “coming soon” advertising is used to circumvent the MLS, market the property to a select group of people, or pressure a buyer to use the listing broker for the transaction, which not only breaches real estate professionals’ ethical duties to clients but may violate real estate license and consumer protection laws.
Both Missouri and Kansas require an effective listing agreement to be in placebefore any advertising is conducted and this includes these signs. Verbal requestsby the owner, or letters or email permissions from sellers, etc. are not sufficient tosatisfy the license requirements. (Although it was previously believed this might beadequate in Kansas.) There are numerous potential violations involved with thispractice and there are no exceptions for who (or what) the Seller may be, i.e. HUD,a foreclosure company or bank. To file a complaint or obtain additionalinformation a licensee should contact either real estate commission.
Advertising a property before it’s ready for showing may not be a new practice. But what’s on the rise may be the nefarious intent behind the tactic.
In response to a flood of Coming Soon listings, the KCRAR real estate commissions have stepped in to try to help consumers and to clarify what makes this advertising legal or not.
Improper “coming soon” advertising may also violate state laws and regulations. Real estate professionals owe certain fiduciary or statutory duties to clients under state licensing laws and regulations, and that duty is violated when the professional does not act solely in the client’s best interest. State laws also typically require truth in advertising, and improper Coming Soon listings are misleading and inaccurate.
6 best practices for legitimate Coming Soon listings …
_ Are only for properties under a signed listing agreement.
_ Comply with all state licensing laws and regulations.
_ Have a compelling reason that this tactic is in the best interest of the client.
_ Have the client’s informed consent in a thoroughly documented written agreement.
_ Restrict showings and bids equally to all potential buyers.
_ Comply with MLS rules.
7 signs indicating nefarious Coming Soon listings …
_ Are not in the seller’s best interest.
_ Are made without the seller’s permission or consent.
_ Have no logical or reasonable reason to be marketed in this way.
_ Are actively shown only to select groups of buyers.
_ Accept offers.
_ Compel sellers to accept offers from a buyer who is represented by the seller’s own agent team.
_Does this marketing for ALL listings
Remember that you are the client, ask questions during this process. You are paying Realtor fees for your benefit and if you feel you’re not benefitting from this practice you are not obligated to allow your listing agent to market your home this way. If you feel like you’re Realtor is not working, or worked, in your best interest go to KCRAR.com, Kansas or Missouri Real Estate commission to file a complaint.