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The core conflict surrounding "coming-soon" real estate listings centers on one fundamental principle: should all home buyers have equal access to all property listings, or can brokers selectively restrict information? Based on industry standards and a major 2008 antitrust settlement, the ethical practice mandates that all Multiple Listing Service (MLS) listings be made available to all potential buyers, either online or through their agents. This article explains the different types of coming-soon listings and why transparency is critical for a fair market.
The Multiple Listing Service (MLS) is a comprehensive database used by real estate brokers to share information about properties for sale. Its foundational principle is cooperation and compensation among brokers to ensure the widest possible exposure for a seller's home. When a listing is entered into the MLS, it is typically syndicated to major public search websites, giving it maximum visibility. The system is designed to create a competitive and efficient market by ensuring that every buyer represented by a licensed agent has access to the same inventory. Limiting access to listings undermines this core purpose and can disadvantage certain buyers.
A coming-soon listing is a property that is being prepared for the market but is not yet actively for sale. Practices vary significantly among brokerages, creating a key distinction in market fairness.
Publicly-Marketed Coming-Soon Listings: Some brokerages, like Redfin as noted in the original text, advocate for a model where a coming-soon status is designated within the MLS. This status prevents the listing from being publicly marketed on search sites for a limited period, but the listing data is still shared with all other brokers in the MLS. This approach maintains transparency within the professional real estate community while allowing the seller some control over the initial marketing timeline.
Agent-Only or Brokerage-Exclusive Listings: Other brokers support a model where coming-soon listings are not entered into the MLS at all. Instead, information is shared only with agents within the same brokerage or a select private network. This practice violates the spirit of the MLS by creating a pocket listing, which limits the seller's potential audience and contradicts the cooperative nature of the market.
The reference to the "last great real-estate anti-trust battle, settled in 2008" is crucial. This settlement involved the National Association of Realtors (NAR) and addressed policies that could stifle competition. A key outcome was reinforcing the rule that MLS listings must be made available to all brokers and their customers without discrimination. The intention was to prevent larger brokerages from hoarding listing information to gain an unfair advantage, ensuring that a buyer working with a small, local agent has the same access to properties as a buyer with a large, national firm. Brokerage-exclusive coming-soon listings risk contravening this established principle.
For sellers, the choice of how to handle a coming-soon listing has direct consequences.
For Sellers: Opting for a brokerage-exclusive coming-soon period may seem appealing for privacy or exclusivity, but it significantly limits the property's initial exposure. By not immediately entering the listing into the MLS, the seller misses out on building broad agent and buyer interest from day one, which could ultimately affect the final sale price. A publicly-marketed MLS coming-soon status offers a balanced approach, allowing for preparation while committing to full, transparent exposure shortly thereafter.
For Buyers: When listings are withheld from the full MLS, buyers are at a disadvantage. You may miss out on potential homes simply because you are not working with the specific brokerage that has the exclusive listing. This fragments the market and makes the home search process less efficient and fair.
In conclusion, while coming-soon listings can be a useful tool for sellers, the method of implementation defines their fairness. Buyers benefit most from a system where all listings are shared cooperatively. Sellers are advised to work with agents who prioritize full MLS exposure to ensure their home is seen by the entire market, aligning with both ethical standards and their own financial best interests.
