Realtors Bending Rules???
Agents say “Coming Soon” signs just a marketing tool
Some real estate agents maybe bending their industry advertising rules in order to quickly sell homes in Toronto’s booming housing market, according to Toronto realtors.
Toronto area homes are more commonly being advertised before they appear on MLS – the multiple listing service which permits agents to see what’s for sale.
Agents say the “Coming Soon to MLS” signs they attach to homes is just another marketing tool to drum up interest. But some agents are simply posting signs that don’t include required information to make a quick sale & have no intention of posting them on MLS, according to realtors.
Some agents maybe using it as a means of just selling it before it gets to MLS.
Sometimes you see the “Coming Soon” & it goes straight from “Coming Soon” to “Sold” & everyone’s going, wow, how did that happen? If you think you’re going to be fully marketed, you want to make sure you property is going to MLS & your agent’s just not selling it to somebody to make a quick buck or to sell to their own Buyer without everyone else participating.
The Real Estate Council of Ontario can inflict penalties on the agents caught violating advertising standards. The sign cannot just say “Coming Soon” without a date the property is scheduled to be published on MLS. Signs must also display the registered brokerage & sales person’s name.
It could very well be that the Seller & their agent put up the sign with the full intention to list the property on MLS at a specified time. However, if a Buyer comes in with an offer before the listing is posted, the Seller has every right to accept it, said RECO’s deputy registrar of regulatory compliance.
Some clients choose to advertise their home with a “Coming Soon” sign to generate buzz, they believe this could shorten the process (of finding a Buyer). Rather than having a few people trickle in here & there over a period of time, it hopefully will happen within days. This approach could also impact the selling price.
There is a strategy when it comes to advertising with a “Coming Soon” sign. It’s important not to advertise too early before it comes on MLS, because people do get bored with it, but seven to 10 days before it comes on MLS, it just gives people a chance to potentially accumulate interested parties & if there’s another house they may be potentially in, you can divert them to something else.
Some Agents websites also have a “Coming Soon” feature, which is frequented by browsers. Most calls come from realtors, who wants to be able to tell their clients first about this property. Especially with the advent with bully offers, people want to get ready. They’ll make sure they have their ducks lined up – that their parents see it, they’ll get the inspection report early.
When selling your properties Sellers should also have an agreement with the agent to not show the house or take offers prior to the listing arriving on MLS.
Home Sales Keep Going Up
According to the Toronto Real Estate Board, Toronto home sales logged through MLS in September increased by 21.5% compared to the same time last year. The average selling price was up by 20.4% - to $755,755.
Basic economics - high demand & limited supply continues to drive sales of all major home types, according to TREB president Larry Cerqua.
What we're seeing is the limited supply, it's not rocket science here, & it spreads out to the surrounding areas as well, It's bad for a lot of Buyers. We really want to see the government helping out on permits, land-use, so people can build more. We need more houses.
As for the "Coming Soon" signs, the signs are just a matter of taste with different agents. Most reps that do this, it's part of their marketing.
We don't want people abusing the "Coming Soon" signs either, Agents cannot arbitrarily stop a showing. If it's exposed, you have a right to call the brokerage & set up a showing unless the Seller directly says they don't want showings. That's where you get that fine line.
Please feel free to contact me regarding this article or about any real estate needs or questions that you may have. Call me at 416-804-0991 (client line) or 416-441-2888 ext 266 (office) or email for more information.
Source: MetroNews – Jenny Yuen - Oct 2016