North Texas once again is looking at a robust spring real estate market! Despite rising mortgage rates prices are up 15.4 percent to $225000 and days on the market have decreased 7.7 percent to 48 days according to the most recent NTREIS report dated January 2017. Sellers are in a healthy position as they market to buyers looking to fiercely compete for available properties. Tack on the “Coming Soon” marketing technique and now you’ve got the perfect storm! But not everyone agrees that “Coming Soon” is advantageous.
Recently Dawn Moore CEO and Founder of Allegiance Title Company addressed this topic in her weekly video distributed to real estate agents entitled “Dawn Moore’s Tip of the Week.” The following is her take on “Coming Soon” marketing:
Many have asked my opinion about the “Coming Soon” marketing technique. From the seller’s perspective a “Coming Soon” designation may be helpful as it does generate interest without the seller having to go through the hassle of showing the house multiple times. However for the buyer “Coming Soon” oftentimes means “Already Gone!”
Advertising a property as “Coming Soon” often misleads buyers into thinking the house is not available until a date in the future. In turn some buyers believe they have time to submit an offer after the house is “available” only to learn that the seller has already accepted another offer.
Buyers feel – rightly or wrongly – that they were misled or worse yet lied to. And in a market where buyers are frequently frustrated after losing out in several multiple-offer situations even the appearance of impropriety can cause problems.
Despite what the public may think when the listing agent posts on MLS that all offers will be reviewed at a future time certain the seller is not precluded from reviewing an offer before that time. Even if the listing agent goes further and states no offers will be accepted before the future time certain a savvy buyer who wants to have their offer reviewed first is not prevented from making an offer that terminates just before the time designated for review of all offers. The listing agent will have to present that offer to the seller before it terminates or the seller loses his/her opportunity to accept the offer. Any “acceptance” after an offer terminates is really just a counter offer on the same terms as the offer and the buyer would have to accept that counter offer for the contract to be binding.
Therefore my advice to buyers in situations when they are concerned they may lose out on yet another property is to submit their highest and best offer as soon as possible with a short window for acceptance by seller. Then if offer is accepted by seller use the option period to diligently determine which house is the one for you.
Dawn Moore’s Tip of the Week can be seen at www.allegiancetitle.com. A new Tip is released each Friday.