Coming Soon
If your broker wants to market your property as Coming Soon, they are really attempting to lead you into a dual agency situation. If you prohibit dual agency, the broker will become rather indifferent about the whole coming soon idea.
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Another conversation:
Broker: So before I have you sign the listing agreement to sell your house, have you thought about marketing it as Coming Soon? What we’ll do is stick a sign in the front yard and I’ll put it up on my website. That way, we’ll give your home a bit of buzz. But we won’t make the home active (for sale) for two weeks. And we’ll have all the possible buyers dying to see the place. Thirty days is even better, if you’re not in a rush.Seller: But what if someone wants or needs to buy it before the end of the 30 days? Surely, we don’t want to lose a potential serious buyer?Broker: Not to worry, you can show it to them. The local MLS does not allow me to do it. But I tell you what, I’ll just pop by to check on you while they’re here. And if they want to make an offer great. If we can work out a deal, even better.Seller: Can we sell it if it is not active?Broker: Well once we come to terms with the buyer and sign a contract, I’ll change it to active. And then I’ll immediately change it to sold. All kosher. And all wrapped up.Seller: Hey that sounds really good, let’s get this agreement signed.Broker: Great, sign here. Oh, and I also need you to initial the dual agency language.Seller: Yeah…we’ve been reading up on that, and we would prefer exclusive representation.Broker: Really?
Here, the broker and sellers discuss the pros and cons of dual agency. Since there really are no pros to the seller, the broker whips out her best objection handling scripts. But these sellers have already read the previous chapter.
Seller: So yes, we want you to represent us as the sellers and only us. There, all signed and initialed. Now, when do we start the Coming Soon?Broker: Well, you know, since you have prohibited dual agency, I cannot represent the buyer for your house.Seller: Oh yes, we understand.Broker: And if I cannot represent them, they will need their own broker.Seller: Yes, we see that.Broker: And of course, that broker will need to be paid.Seller: Of course, but you did say that your total fee would be divided with the buyer’s broker, right?Broker: Yes but, we would need to wait until the end of the Coming Soon period for other brokers to show the house. Those are the MLS rules.Seller: Well okay, but what about all the buzz? Surely, we’d still get all the buzz?Broker: You know, the buzz is probably not as important as getting those buyers in here to see the place.
See the difference? It is really a question of whose buyers are we talking about? If the listing broker also represents the buyers in a dual agency situation, she keeps both sides of the commission. If the seller prohibits the listing broker from also representing the buyer, she only gets one side of the commission.
This buzz business, or however they’re selling it, is really just subterfuge. What the broker wants, really wants, is both sides of the commission.