Are You Sure You Understand NAR's Policy On Coming Soon Listings?
I recently wrote a post titled: Are You Taking Advantage Of "Coming Soon" Marketing? I was amazed at the comments from ActiveRain members who I believe do not quite understand the new NAR policy.
Perhaps it is me that does not understand, so it is my hope that this post will generate some discussion as to why people believe that you cannot market a "coming soon" listing. It is the best way to get top dollar for the home seller in today's digital world (as I explained in the previous article), and I'm confident that it can be done all the while maintaining full compliance with NAR's policy and intent.
NEW NAR POLICY
Here is what NAR has released:
MLSs can adopt the specific policy language under Listing Procedures. Below are the changes to the NAR model MLS Rules. These changes will be reflected in the Model MLS Governing Documents found in the 2020 Handbook on Multiple Listing Policy (updated version expected January 2020):
Section 1.01 – Clear Cooperation Within one (1) business day of marketing a property to the public, the listing broker must submit the listing to the MLS for cooperation with other MLS participants. Public marketing includes, but is not limited to, flyers displayed in windows, yard signs, digital marketing on public-facing websites, brokerage website displays (including IDX and VOW), digital communications marketing (email blasts), multi-brokerage listing sharing networks, and applications available to the general public. (Adopted 11/19)
Note: Exclusive listing information for required property types must be filed and distributed to other MLS Participants for cooperation under the Clear Cooperation Policy. This applies to listings filed under Section 1 and listings exempt from distribution under Section 1.3 of the NAR model MLS rules if it is being publicly marketed, and any other situation where the listing broker is publicly marketing an exclusive listing that is required to be filed with the service and is not currently available to other MLS Participants.
My Interpretation Of The NAR Policy
I believe this policy was created for a good reason. Too many agents "hide" listings from the market so that they can double-side them. This has been going on far longer than the short 30 years that I have been selling homes. Whether you call them "pocket listings," "off-market listings" or some term I have not used, most sellers would be upset to know that that a real estate broker did not use every possible channel and method to ensure top dollar was achieved (while also satisfying the primary goals of the seller).
So the "meat" of the new Clear Cooperation policy is that once a Realtor executes a listing agreement with a home seller, the listing must be entered into that Realtor's MLS. Are we all in agreement up to this point?
Point Of Confusion
Assuming that everybody is in agreement up to this point (if not, please comment below), then I believe the point of confusion might stem from the fact that different MLS systems are handing things (differently).
Some MLSs (like the Tallahassee Board of Realtors), have created a listing status called "coming soon." It is a way for us to offer compensation and market listings not yet on the market to all members of our MLS. IMPORTANT: Our policy, in parallel with the new NAR policy, is that all coming soon listings must be entered into the MLS within 24 hours of obtaining a signed listing agreement.
The fact that the home is "coming soon" DOES NOT PRECLUDE us from marketing the home on all channels to consumers. In fact, I consider it a fiduciary responsibility for my home seller (more on this in the previous article). I can help my seller get MORE MONEY if MORE PEOPLE know about the home BEFORE IT HITS THE MARKET. And the new NAR policy supports that.
Now if you are in an MLS that does not have a listing status that allows you to do this, then perhaps that is why I received comments saying "you cannot do that!" Well, I believe I can. Can you?
If there are unfortunate sellers out there who are in areas where the MLS system is not yet handling this well, I strongly urge its members to amend the system immediately. Again, referring to the previous article that I wrote on this point, Coming Soon Marketing is a fantastic way to leverage digital channels to prepare the market for a new listing.
What Did I Miss?
OK, so that is my take on the new NAR Clear Cooperation Policy that has prompted varying interpretations from ActiveRain members. Did I miss something? Do you think my interpretation is incorrect? I would love to see your feedback below!
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