You may have seen signs around town here and there in front of houses that say “coming soon”. These homes are not yet on the market or on the MLSand the listing agent is hoping for an opportunity to sell the home before it hits the market and is taking advantage of the buyers who believe that the only way to buy a home is to win in a multiple offer situation.
The agent may also end up being a dual agent which means he or she will make more money but will be unable to represent either party in the transaction.
So what happens when that single agent with the “coming soon” sign ends up in a multiple offer situation where he or she is writing all of the offers? I found myself in that situation once in my career, and I don’t want to ever be in that situation again. I wrote three offers for three buyers on a “pocket listing” that I had that was not advertised anywhere.
I am not a fan of the “coming soon” signs in front of listings. I have been averaging 8 days on the market for my listings this year, and most are getting multiple offers. It only takes one good offer to get the home sold for the maximum amount.
Sellers are not going to get any more for their homes by having one of the “coming soon” signs in front. Sure it triggers panic buying and a lot of activity which is wonderful for the listing agent and his or her team or brokerage. There are agents and brokerages doing all that they can to encourage and leverage panic buying. It kind of reminds me of the great toilet paper shortage in the late 1970’s.
I have also seen buyers back out after winning in a multiple offer situation. They get so caught up in the drama of the “bidding war” that it isn’t until it is all over that they realize they just made the best offer on the wrong house.
As the inventory of homes on the market continues to rise there will be a little more balance between buyers and sellers. Interest rates are going up a little but are very low and if they do go up home prices will go down.
