Since I started in the real estate business in 1986, I’ve seen a lot of changes – most for the better.
The requirements to enter the business are more demanding and more young people are turning to real estate as a career path. Both are great developments. We need new blood and high calibre ones at that.
In fact, new blood has entered the industry, membership in the Toronto Real Estate Board is now approximately 46,000 agents. However, with that many agents, there are bound to be a few whose business practices are questionable.
This leads me to the reason for my post. Drive around neighbourhoods and you will see signs advertising, “Coming Soon.”
Some of these Coming Soon signs end up sitting on a lawn for several weeks. I guess the definition of ‘soon’ is subjective and could be up for debate, but I digress. The reason agents use this form of advertising is simple: they are greedy. Yes, I went there.
These agents want people to call them directly to buy the house and by doing so, they get to keep both sides of the commission.
In the majority of real estate transactions, there are two agents involved. An agent representing the interests of the Seller and an agent representing the interests of the Buyer. This is how the MLS system works and more importantly, why it works so well.
It is a cooperative form of marketing a property and the best way to ensure the Seller receives maximum exposure. Cutting other agents out of the process is totally against what the MLS system is about.
Back in the old days, we called these listings “pocket listings” and most companies had office policies which prohibited their use. These days, they seem to have come back in a new form under the guise of “Coming Soon.”
Call it what you may, the greatest issue with this type of marketing is that the listing agent is running the risk of violating his or her fiduciary duties to the seller. As an agent, you owe your clients a duty of undivided care, loyalty, and honesty.
When an agent use Coming Soon signs, any other agent won’t know about that property. Unless of course, they happen to be driving past the sign. Consequently, the Seller’s property is not being fully exposed to the maximum number of potential buyers. Fewer people will know that it’s for sale and the seller’s ability to obtain the highest possible price for their home will be compromised.
So, who exactly does a “Coming Soon” sign serve, the client or the agent?
I know what my answer is.
