While we've incorporated a "coming soon” marketing strategy frequently with property sales over the years, in recent market conditions it has become a much more normal and commonplace part of successful home marketing strategies.
When we started this more than 20 years ago, it was based on the simple concept of trying to build interest and awareness while our sellers were preparing their homes for sale. Taking steps to ensure buyers interested in the area would be aware and not make a purchasing decision without considering our soon to be on the market option. Capitalizing on the lead time to build interest and to have buyers ready and eagerly waiting to view when the sellers were ready to open the doors to view.
Pro: Garner Interest In Your Home Before It's Listed
I remember vividly one such example when good friends were settling their mother's estate in 2004. The home at 1448 Vining Street needed a lot of purging and preparation before it made sense to show. In the 30 days of lead time we generated so much interest that we wound up with CHEK TV news coverage when we opened for viewing, received 13 offers on offer day and sold for 17% above listed price, far more than the appraised value.
Pro: It's Common Practice
In the more recent undersupplied market, coming soon and delayed offer protocol have become normal practice. With that the concept of "bully offers” has arisen where buyers submit an offer for consideration ahead of the date/time declared for considering offers by the seller and their agent. Sometimes these are tough to set aside as there is a risk of the offer being the best they will see and of that buyer not returning to the table to compete.
Pro: It Increases Exposure
This process does not work as well if reliant solely on the MLS to reach buyers. It's one thing to be on the internet and quite another to be found on the internet. Our vast network of agents coupled with creative and innovative marketing on social media and the internet ensure maximum reach and potential buyer engagement. On average our coming soon listings are exposed to more than 2,000 buyers before they even reach MLS.
The extended marketing time created with the coming soon concept combined with a delayed offer process allows more prospective buyers to be engaged and if priced appropriately, to generate an auction like outcome with blind bids ensuring the highest possible price.
Cons: Some Agents Will Misuse The Program For Their Own Gain
Be cautious of agents who may use the coming soon strategy in an attempt to corral buyers themselves for the purpose of keeping all the commission to themselves, totally defeating the purpose and missing the opportunity to generate maximum sale price and your maximum net return. Beware also of overpricing when following this strategy. The agent you interview who tells you the highest price is typically buying your listing, they are not buying your house.
The reality is that estimating sale prices is an ongoing challenge even for those of us who are experts. The market is always moving and changing, without notice or warning. Furthermore, there are often many unique variables to consider which can be very subjective and difficult to quantify. These variables expand the margin for error swiftly and dramatically.
Effective Strategy With Proven Results
Our teams results show the advantage gained clearly with average sale prices over listed price and average market time a small fraction of the average for the Victoria Real Estate Board. In the last quarter of 2016 our listings sold on average for more than 2% more than the listed price and more than 5% higher than listed price relative to the real estate board average and 2.5 times faster in just 16 days compared to the real estate board average of 40 days. In the first quarter of 2017 our numbers were even better!
Preparation and pricing is key. No one wants to leave money on the table, neither do we. While most would prefer a quick sale, no one wants to sacrifice price to achieve that. Our objective is to work with you to get you the best possible results. We will work with you to ensure your home is prepared for sale, as much as you are open to, in the best possible light. We will work with you to develop the right pricing strategy to ensure the best possible outcome.
Read more HERE about pricing it right which I wrote about in April 2015.
Please contact us for your personal consultation about preparing for sale and maximum sale price strategy. Have a question? Leave us a message in the comments below!
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The Neal Estate Team is your #1 source for all of your Victoria BC real estate needs. Get in touch with us online or by phone at (250) 386-8181 to speak with a Victoria real estate buying or selling expert today. With decades of experience as a top selling Victoria REALTOR® and ranked in top 1% globally with over 4,000 transactions and $1 Billion SOLD, Ron Neal & The Neal Estate Team have the industry experience and market knowledge to help you make smart and informed buying or selling decisions.