In a recent interview with Judy Lowe, Arizona Real Estate Commissioner, when asked, “What are the areas of concern for ADRE?” she indicated one of them is “Coming Soon” or a “Pocket Listing,” which is on the rise. Here is what you must know to avoid Code of Ethics, MLS & Anti-trust violations.
Coming Soon or Pocket Listing is where you have the listing, a full executed listing agreement, and an Exempt Delay Input Listing form but are just advertising it for sale with a sign and “Coming Soon” rider. This means that this property – at this time – has a delayed input into MLS (please note that there may be other reasons for the property being delayed going into MLS). When an agent installs a “For Sale” sign and “Coming Soon” rider, they are performing a limited advertising/marketing plan and the seller needs to understand that this type of marketing of the property might not achieve the highest and best price for him/her.
If you chose to place a “Coming Soon” sign on the property, it is critical that you ensure that the seller is making an informed decision in regard to this plan. While you will need to obtain written permission from the Seller to put up a “For Sale” sign with a “Coming Soon” advertising rider, you will also need to ensure that you have disclosed to the seller that they may not be obtaining the highest and best offer if they accept an offer before it goes into MLS. Furthermore, by waiting until the listing in inputted into MLS, the seller is obtaining maximum exposure, allowing it to be viewed by a larger pool of potential buyers either through the MLS or through IDX feeds to numerous other websites thereby resulting in a potentially higher sales price.
Agents must promote and protect the interest of the client; present a true picture in their advertising, marketing, and other representations; and make the property available to other brokers for showing to prospective purchasers when it is in the best interest of the seller. Failing to do so harms the reputation of the broker and of REALTORS®.