What does “coming soon” mean on real estate listings?

The term “coming soon” on real estate listings means that a home isn’t officially for sale on the market but will be within the next several weeks. Each state usually has different rules and regulations when real estate agents are allowed to list “coming soon” homes and for how long.

Whether you’re buying or selling a home, we’ll help you understand the meaning of “coming soon” homes, how they differ from other types, and if it’s in your best interest to list or target these types of listings.

Why are ‘coming soon’ listings used?

“Coming soon” listings are used to give a head start, so to speak, for home sellers and their real estate agent to prepare the home for sale. The house listing will be on the MLS, or multiple listing service, a database that shares information on properties.

A “coming soon” property isn’t officially on the market but is intended to let the public know it will be available for sale within a specified number of days. Buyers won’t be able to view the home, nor can sellers advertise the property until the home is officially listed for sale.

‘Coming soon’ vs. pocket listings

At first glance, a “coming soon” listing might seem similar to a pocket listing, which is an off-market listing designed to target a select, smaller group of potential buyers. Pocket listings are shown only through the seller’s private network.

In contrast, “coming soon” listings can be found on a multiple listing service at some point in the sale process. The main difference between the two is where the properties will eventually be listed for sale.

With a “coming soon” listing, the home will eventually go on the MLS, which all eligible real estate agents and those with access to the database will be able to see. For example, prospective homebuyers will be able to see them through online real estate marketplace platforms.

A pocket listing won’t be listed on the MLS because the seller hasn’t authorized it. Instead, these are types of listings where a real estate agent helping the seller will sell the property by using alternative online platforms or their networks.

Buyers and ‘coming soon’ listings

As a home buyer, you may be able to use “coming soon” listings to your advantage. But there may also be downsides, especially if you really like the home. Let’s take a look at the pros and cons of these types of listings.

Pros

• Less competition: Since the home isn’t officially listed for sale yet, “coming soon” listings may have limited reach, or some buyers may overlook them. As such, there is less competition, which gives you an opportunity to make an offer before others as soon as the home is for sale and avoid a bidding war.
• More time to craft an offer: Before the home is officially listed for sale, you’ll have time to prepare documentation needed and put together a competitive purchase offer.

Cons

• Increased risk of dual agency: A dual agency is when a real estate agent represents both the buyer and seller. A “coming soon” listing could increase the possibility of dual agency, since the real estate agent may be able to tell their buyer about the property before it hits the market. Dual agency can put you at risk since the agent can’t in good faith act in the best interest of you and the seller.
• Higher pressure to make an offer: You can’t really tell if other buyers are also interested in the “coming soon” home. Since these listings could attract more serious buyers or interest in general due to a seller’s market, you could feel like you have to make an offer right away.

Tips for buying a ‘coming soon’ home

If you believe that looking at “coming soon” real estate listings will help you find your next home, consider these best practices.

Hire a buyer’s agent

A buyer’s agent represents you and acts in your best interest. This professional can help you navigate the homebuying process, including when the “coming soon” listing will officially be on the market.

Prepare your finances

Mortgage lenders typically require borrowers to meet minimum credit score requirements, have a source of steady income and be below a certain debt threshold.

One of the best ways to prepare your finances to buy a home is to check your credit score and make improvements if need be. Other steps to take include avoiding taking on new debt until after your home closing and gather all necessary documentation for when lenders ask for them.

Make a good offer

Making a purchase offer involves letting the seller know how much you’re willing to pay for the home and any contingencies you want met. For example, a home inspection contingency is where the seller agrees to a home inspection, and you can, within reason, ask for necessary repairs. A good offer is one that is fair to both the seller and buyer. Your agent will be able to guide you through what a good offer looks like.

Seller’s guide to ‘coming soon’ listings

Although you’ll receive advice from your real estate agent, taking the time to consider the pros and cons of selling a “coming soon” home will help you determine if it’s the right option for you.

Pros

• More preparation time: A “coming soon” home listing gives you more time to make any last-minute preparations before the home is on the market.
• Enhances privacy: A “coming soon” home listing will allow you to show the home to a limited number of people until the listing goes public.
• Gives you a feel for your home value: Your real estate agent may be able to get feedback on your listing or home before it’s officially on the market. It could help to gauge whether you need to change your listing price, or how soon you could get an offer.
• Could encourage more offers: Buyers who are interested in the property have more time to make an offer, which could entice stronger ones.

Cons

• Less exposure: Until the home is publicly listed on the MLS as actively for sale, your listing may only be visible to a limited audience.
• Potential for dual agency: Your real estate agent could let their potential buyers know about your home, which could lead to dual agency. If so, your agent may not always be able to act in your best interest.
• Can’t actively market the home: Your real estate agent is unable to market or advertise your home for sale with a “coming soon” listing.

Tips for selling a ‘coming soon’ home

Some best practices for preparing a “coming soon” real estate listing include hiring professional help, being clear on what you’re allowed to do, and refining your plans as necessary.

Hire a real estate agent you can trust

A real estate agent is meant to guide you through each step of the home selling process and represent you as the seller. Hiring one you trust means you can be sure they’ll adhere to real estate code of ethics and follow local rules on a “coming soon” listing.

Understand local guidelines

States may have differing rules and regulations when it comes to “coming soon” listings. For example, some states stipulate that your listing needs to be changed to “active” within 10 – 14 days. Some also forbid the real estate agent from publicly advertising or marketing the property until it’s for sale on the MLS. Be sure to discuss what your local guidelines are with your agent.

Assess feedback from potential buyers

Your real estate agent may start getting questions about your home. If so, ask them what the feedback is, and take these into consideration if there are enough of them. For example, if a few buyers talk about how nice the landscaping is, you could edit your listing to highlight outdoor areas. Or, if some mention that the bedrooms look too dark, you have time to stage those rooms again to allow more natural light into the home.

FAQ

You have questions about “coming soon” real estate. We have answers.

Where can I find ‘coming soon’ real estate listings?

You should be able to find “coming soon” listings by driving around the neighborhood you want to live in or by asking your real estate agent for any listings through their network. Some online real estate marketplace platforms list them as well.

Can I make an offer on a new ‘coming soon’ listing?

Yes, it’s possible to make an offer on a home that’s listed as “coming soon.” You need to be prepared that the seller may not respond right away. The seller may not look at offers until the home hits the market.

Why do real estate agents use ‘coming soon’ listings?

Real estate agents use “coming soon” listings to show that a property will be on the market in the coming days or weeks. It could help to generate additional interest and give the seller to make any additional preparations.

Can you tour a house that says ‘coming soon’?

No, you are unable to tour a house listed as “coming soon.” You’ll have to wait to see it until it’s officially on the market.

Why buy a house that is ‘coming soon’?

A “coming soon” house gives you an opportunity to look at the listing to see if you’re interested in touring the home and making an offer. The home could also be in your ideal neighborhood or within your budget.

Why do real estate agents use ‘coming soon’ signs?

Real estate agents use “coming soon” signs to generate more interest in the home before it goes on sale.

The bottom line: A ‘coming soon’ listing isn’t right for everyone

Looking at or listing a home as “coming soon” offers some benefits like giving you time to make an offer or receiving feedback if you’re the seller. However, this strategy isn’t right for everyone, as it could risk dual agency or leading to less exposure to a property listing. Whether you’re buying or selling a home, take the time to work with a trusted real agent, like ones through Rocket Mortgage®, to guide you through the process. Getting preapproved for a mortgage will help buyers get an offer accepted and go through the closing process faster.