The terms “pre-marketing” or “coming soon” can oftentimes be confusing for new home buyers or sellers. Also commonly referred to as pre-MLS, these terms simply refer to a property being advertised to a specific and select group of agents before the house is offered to the public.
After this allotted amount of time is over, the home is placed on the MLS unless it sold during the pre-marketing phase. This form of marketing is still pretty new, however it has still managed to gain a lot of popularity and is heavily debated.
Here are a few of the many benefits of pre-marketing.
1. Generates Attention and Exposure
Essentially, pre-marketing plants the listing into potential buyers minds. It helps line up offers from the amount of attention gained. In any market, buyers will oftentimes be willing to pay more to have first access to a home. With that being said, potential customers are usually ready to pay more to secure a home before anyone else gets the chance to. This is a win-win for both the buyer and the seller. The seller is receiving more money for their home and getting it off their hands quicker. The buyer is also getting the home quicker and can get the stress of finding a home off their shoulders.
2. Gauges Interest
Pre-marketing is a great way to get a feel of what potential buyers think of the home. It allows for feedback to be heard and taken into consideration. The pre-market phase is oftentimes when the price is heavily considered. The agent and sellers can get a feel for whether the potential home buyers thought the price was too high or low and then adjust the price accordingly before the home is listed on the MLS.
3. Less Likely Home Will Just Sit on the Market
Oftentimes, if a home sits on the market for a long time it is bad news for the agent and the seller. Buyers are less likely to look at the property if it has been on the market for a long time because oftentimes they will assume something is wrong with the house or that it’s undesirable. This is where pre-marketing comes in handy. It makes the home seem like a hot item and more popular because it is not even on the MLS yet. By the time the home is finally listed on the market, it is more likely to have interested buyers waiting to look at the house or make offers. Essentially, pre-marketing significantly lessens the chance the house will become stale on the market.
There are some regulations that come along with pre-marketing. Listing agents are required to be fully transparent about their listing. Basically, they cannot tell one agent the property is unavailable and then go showing it to their own chosen buyers. Also, many listings must be submitted to the MLS in a certain time frame after a listing contract has been completed.