Coming Soon Real Estate: What These Listings Are And How They Work
Kayla Donaldson4 MINUTE READ TIME
June 22, 2021
Did you stumble on a “coming soon” listing while searching for your dream home?
What does “coming soon” in real estate really mean?
Current real estate professionals are debating the role of coming soon listings in the market. Some claim it can be beneficial for certain clients, while others are steadfast in the belief that the negatives outweigh the positives. Despite the differing stances, one aspect of the debate that is agreed upon is that buyers need to be made aware of the impact of coming soon listings on home sales so they can make informed purchasing decisions.
Below is all you need to know about coming soon real estate, the pros and cons, and how it will impact you as a buyer.
What Does ‘Coming Soon’ Mean In Real Estate?
In real estate, the label “coming soon” means a property listing is not officially on the market and will be listed for sale within 30 days. Coming soon properties can be listed by Zillow premier agents or real estate brokerages and Multiple Listing Services that have an agreement with Zillow.
These coming soon features are changing the way that many buyers purchase homes.
Pocket Listings Vs. Coming Soon Listings
Pocket listings and coming soon listings can seem similar, but in reality, they differ significantly.
A pocket listing is often referred to as an off-market listing. It involves a real estate agreement in which the property never makes it to an MLS and instead is shown to buyers through the seller or agent’s own private network.
Coming soon listings differ in that they can be included on an MLS.
How Do Coming Soon Listings Work?
Coming soon real estate means that the property is not available for showing or purchase for a designated period of time.
Coming soon listings can be an advertising technique for generating interest in a home before the property is actively on the market. While the home is listed as coming soon, listing agents can advertise the home and its future open houses, and announce when it will be shown.
For coming soon homes, the only way to get more information about the property is to contact the listing agent, which can cause buyers to call the listing agent directly instead of contacting a buyer’s agent. This varies from the standard opening process.
The time officially on market can also be shorter. With the excitement surrounding the home, offers will likely be made sooner.
Pros And Cons Of Coming Soon Properties
There are both benefits and drawbacks of buying a coming soon property. Some benefits include advanced warning of the home going on the market and less competition for the property. On the other hand, some drawbacks include the risk of dual agency, less exposure, and that the property may not be listed under its true fair market value.
If a buyer has always had their eyes set on a specific home, a coming soon listing can benefit them. Knowing in advance that the home will be listed on the market may deter a buyer from searching for other homes. Not to mention, if a buyer already knows they love a home, they may be more likely to immediately make a strong offer. With the additional time to financially plan accordingly, the offer is more likely to be accepted.
Since fewer people will know about a coming soon listing, there will be less competition. When knowing about a coming soon home, buyers have the advantage of being able to make offers before the home is on the market. If a strong offer is given before the need for showings and open houses, it is likely to be accepted.
The Risk Of Dual Agency
Dual agency is when the agent represents both the seller and the buyer of the property. In this situation, an agent cannot fairly act to best serve the seller and the buyer at the same time. The risk of this is higher with coming soon properties given the expedited timeline of offers and the tendency of buyers to contact the listing agent directly.
A coming soon listing has less exposure to other buyers. Because of this, there will likely be fewer offers and less price negotiation will take place. This can result in the buyer paying more.
Not Listed At Market Value
Coming soon listings can skew real estate appraisals which can cause inaccuracies in market values. Appraisals are based on the sales of similar properties in the area. Coming soon listings are often not included in appraisals due to their lack of market exposure compared to other homes. Because of this, it is hard to determine a true market value for the property.
How To Find Coming Soon Real Estate Listings
It is so important for interested buyers to learn more about the coming soon laws in the state they are looking to purchase property. This helps the buyer can make an informed decision about placing an offer on a home that’s coming soon.
To uncover coming soon listings, keep your eyes out for homes with “coming soon” real estate signs and look for properties being labeled as coming soon when browsing houses for sale on listings sites.
To increase a buyer’s chance of having their offer accepted, it is encouraged to make a strong initial offer to set themselves apart. Since there is less exposure, there will be less offers, and therefore more likelihood that your offer will be the greatest.
The Bottom Line
Although the role of coming soon properties in the market is controversial, it’s clear that as a buyer, it’s necessary to be aware of the concept. There are both benefits and drawbacks for buyers of coming soon homes. If interested, understanding what they are and how they work, the pros and cons, and how it will affect you as the buyer is essential.
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