When a “Coming Soon” sign appears in front of a home, it signifies that the property is not yet listed on an MLS® (Multiple Listing Service) system. This means the listing isn’t publicly accessible or available for other Realtors to view. Typically, the sign displays the contact information of the real estate agent and their brokerage. If a prospective buyer is interested, they’re left with no option but to reach out to the person named on the sign.
Rules for MLS Listings
Understanding TRREB's Guidelines According to the Toronto Regional Real Estate Board (TRREB), the rules for adding a property to the MLS® system are as follows:
MLS® Rule R-365 states that listings must be entered into the MLS® System within two (2) TRREB business days following the commencement date. (TRREB business days are Monday to Friday, excluding statutory holidays.)
Regional Implications It’s important to note that homes listed for sale in the Durham Region are included in TRREB’s MLS® system. Since Durham doesn’t operate its own system, it adheres to TRREB’s rules.
Why Sellers Use "Coming Soon" Signs
Generating Early Interest Why might a home seller opt for a “Coming Soon” sign instead of waiting to list the property on the MLS® system? Here are a few possible reasons:
Creating Anticipation: In a seller’s market, where property inventory is limited, early publicity can build anticipation. Buyers might hold off on other offers to wait for this property to hit the market.
Encouraging Buyer Patience: Buyers might delay decisions on competing listings in favour of waiting for your property.
Ongoing Repairs and Preparation
Sellers might be completing minor repairs or staging preparations and want to create interest during this time.
The “Coming Soon” period can act as a motivator for sellers to finalize their efforts.
Pre-Marketing Activities
Listing a property involves numerous steps, including professional photography, videography, and creating marketing materials. A “Coming Soon” period allows sellers to begin marketing while completing these tasks.
Exclusive Listing Opportunities
In some cases, sellers and agents may agree to a reduced commission if the property is sold during the “Coming Soon” period. This exclusive arrangement might benefit sellers if the buyer is unrepresented, though it does limit exposure.
The Drawbacks for Sellers
Reduced Market Visibility
Without MLS® exposure, offers might not reflect the property’s true market value.
Potential Ethical Concerns
Agents might prioritize personal gain over the seller’s best interest, such as negotiating private sales or limiting buyer access.
Selective Access Risks
By controlling who can view the property, agents could create situations where buyers they know are favoured.
Why "Coming Soon" Benefits Agents
Capturing Exclusive Leads
Buyers interested in the property must contact the listing agent directly, creating opportunities for future business.
Commission Advantages
Selling the property without involving cooperating brokerages can lead to higher retained commissions for the agent.
CREA’s Realtor® Cooperation Policy
Understanding the Duty of Cooperation On January 3, 2024, the Canadian Real Estate Association (CREA) implemented a new “Duty of Cooperation” policy under Article 30 of the Realtor Code. This policy mandates placing a listing on an MLS® system within three (3) days of any public marketing.
What Qualifies as Public Marketing? Some examples include:
Installing a sign on the property
Posting on social media (even in private groups)
Advertising in any format
Sharing the listing on public websites
Sending emails to multiple recipients outside the listing agent’s brokerage
Exemptions and Benefits
Exceptions include commercial listings and new builds. This policy ensures transparency, benefits consumers, and provides equal access to listings for all Realtors and their clients.
Final Thoughts
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Making an Informed Decision “Coming Soon” signs can be valuable for sellers, provided they understand the potential risks and rewards. Sellers should work closely with their Realtor® to determine whether this approach aligns with their goals.
Maximizing Market Potential Ultimately, listing the property on the MLS® system ensures the broadest exposure, maximizing the chances of selling at the best possible price. Transparency and cooperation between agents and clients are essential to achieving the best outcome in any real estate transaction.
