The “Coming Soon” Conundrum: Are Pre-Listing Signs Helping or Hurting Toronto’s Real Estate Market?

Jamie Johnston, the seasoned broker of record at Re/Max Condos Plus in Toronto, isn’t shy about sharing his strong opinions on “Coming Soon” signs. His candid “rant” about these prevalent marketing tools has ignited a broader discussion within the competitive real estate sector, questioning their true efficacy, ethical implications, and impact on both buyers and sellers. This comprehensive article delves deep into the multifaceted arguments surrounding “Coming Soon” signs, examining why they have become so commonplace, the benefits proponents claim, and the significant criticisms leveled against them, particularly from experienced professionals like Johnston.

Jamie Johnston’s Stance: A Critical Look at Pre-Market Hype

Johnston’s critique of “Coming Soon” signs isn’t simply a matter of personal preference; it stems from a deep-rooted understanding of market dynamics and ethical real estate practices. His “rant” highlights several key areas of concern that resonate with many in the industry who prioritize transparency and client best interests above all else.

Ethical Dilemmas and Transparency Gaps

One of Johnston’s primary points of contention revolves around the ethical implications of “Coming Soon” advertising. When a property is marketed as “Coming Soon,” it typically means it’s not yet fully active on the Multiple Listing Service (MLS), or it’s being shown to a select few before broader market exposure. This strategy can inadvertently create an uneven playing field. It potentially limits the property’s reach to the widest possible pool of buyers, which might not always align with the seller’s ultimate goal of achieving the highest possible price through maximum exposure. Furthermore, it can be perceived as an attempt to generate leads for the listing agent rather than genuinely serving the seller’s immediate needs.

Navigating Regulatory Complexities

Real estate boards and regulatory bodies, such as the Real Estate Council of Ontario (RECO) and the Toronto Regional Real Estate Board (TRREB), have specific rules governing advertising and property listings. Johnston’s concerns often touch upon how “Coming Soon” signs might skirt or even violate these regulations. Rules typically mandate that once a property is publicly advertised for sale, it must also be immediately available for showing to all interested parties through the MLS. When a “Coming Soon” sign goes up, but the property isn’t listed on MLS and appointments aren’t openly facilitated, it raises questions about compliance and fair practice. These situations can lead to “phantom listings” or “pocket listings” that don’t receive full market exposure, potentially disadvantaging both the seller and interested buyers whose agents might not be aware of the off-market opportunity.

Client Best Interest: Fact or Fiction?

A core tenet of real estate professionalism is acting in the best interest of the client. Johnston challenges whether “Coming Soon” signs truly serve the seller’s best interest. While some argue it builds anticipation, Johnston suggests it could restrict competition, leading to fewer offers or offers that are not truly reflective of the market’s full potential. A limited pre-market window might create artificial urgency but could also prevent the property from being seen by the one perfect buyer who might have paid significantly more. This approach risks prioritizing the agent’s lead generation over securing optimal terms for the seller.

The Strategic Allure: Why Agents Embrace “Coming Soon”

Despite the criticisms, “Coming Soon” signs remain a widely adopted marketing tactic, and proponents cite several reasons for their continued popularity. These strategies often aim to leverage anticipation and pre-market preparation to achieve a successful listing launch.

Generating Pre-Market Buzz and Anticipation

One of the most frequently cited advantages is the ability to generate excitement and anticipation before a property officially hits the market. A “Coming Soon” sign can pique the interest of potential buyers and their agents in a specific neighbourhood, prompting them to keep an eye out for the full listing. This can create a sense of urgency and exclusivity, potentially leading to a flurry of interest immediately upon official launch.

Allowing Time for Preparation and Staging

For sellers, the period between deciding to sell and officially listing can be stressful, filled with tasks like decluttering, repairs, and professional staging. A “Coming Soon” campaign can offer a valuable buffer, allowing the seller ample time to complete these preparations without feeling rushed. Simultaneously, the sign starts generating initial interest, ensuring that when the property is finally ready for showings, there’s already a warm audience eagerly awaiting its debut.

Testing the Market Waters

Some agents use “Coming Soon” as a soft launch to gauge initial market interest and buyer feedback without fully committing to a price or full marketing blitz. This informal feedback can be invaluable for fine-tuning the listing price and marketing strategy before the official launch, potentially avoiding a price reduction later if the initial market reception isn’t as expected.

Targeted Lead Generation

From an agent’s perspective, “Coming Soon” signs are excellent lead generation tools. Interested buyers or their agents will often contact the listing agent directly for more information, allowing the agent to build a database of prospective clients. This direct communication can sometimes lead to an early sale, or at least a pool of potential buyers for other properties.

The Regulatory Framework: Understanding the Rules of Engagement

The debate around “Coming Soon” signs is often complicated by a lack of clarity regarding regulatory guidelines. Real estate boards across Canada, including TRREB in Toronto, have attempted to address the issue by implementing rules designed to ensure fairness and transparency. Generally, these rules stipulate that if a property is advertised to the public as being for sale (even with a “Coming Soon” designation), it must be fully entered onto the MLS within a very short timeframe (e.g., 24-48 hours) and be available for showings. The intent is to prevent situations where properties are withheld from public view to advantage a select group of buyers or agents. Agents are legally and ethically obligated to adhere to these rules, ensuring that pre-marketing strategies do not compromise fair access or the seller’s opportunity for maximum exposure.

Impact on Key Stakeholders: Buyers and Sellers

The widespread use of “Coming Soon” signs creates distinct experiences for both parties involved in a real estate transaction.

For Buyers: Excitement or Frustration?

For eager buyers, “Coming Soon” signs can be a source of both excitement and significant frustration. They create a buzz and signal new inventory, which is always welcome in a competitive market. However, if these properties aren’t truly available for viewing or aren’t listed on MLS promptly, buyers can feel misled or disadvantaged. They might worry about missing out on opportunities or perceive a lack of transparency, leading to distrust in the process.

For Sellers: Maximizing Exposure or Limiting Offers?

Sellers are often presented with “Coming Soon” as a means to build hype and ensure a strong launch. While it can undoubtedly generate initial interest, sellers must weigh this against the potential for limited market exposure. By not immediately listing on the MLS and opening up to all buyers, they risk missing out on a wider pool of potential offers, possibly including the highest and best one. An experienced agent, echoing Johnston’s sentiment, would advise sellers to fully understand the trade-offs and ensure their chosen strategy truly aligns with their financial and timing goals, not just the agent’s marketing objectives.

Beyond “Coming Soon”: Alternative Pre-Listing Strategies

For agents and sellers who wish to prepare a property for sale without engaging in the controversial “Coming Soon” strategy, several effective alternatives exist:

• Pre-Listing Consultations and Preparations: Focus intensely on decluttering, repairs, staging, and professional photography/videography before any public advertisement. This ensures the property is pristine and ready for an immediate, full-impact launch.
• Internal Agent Networks: Agents can privately share information about an upcoming listing within their brokerage or trusted network of colleagues. This allows for discreet pre-marketing without public advertising, adhering to MLS rules until the property is officially launched.
• Targeted Private Outreach: For unique or high-end properties, an agent might engage in private, direct outreach to a select group of pre-qualified buyers known to be in the market for such a property, again before any public listing.
• Full Market Launch with Robust Marketing: The traditional approach of listing on MLS with professional photos, virtual tours, floor plans, and comprehensive marketing from day one often remains the most effective way to ensure maximum exposure and competitive offers.

Conclusion: A Call for Ethical and Effective Real Estate Marketing

Jamie Johnston’s impassioned stance on “Coming Soon” signs serves as a crucial reminder that while innovation in real estate marketing is welcome, it must always be anchored in ethical practices and genuine client advocacy. The “Coming Soon” strategy presents a double-edged sword: it can build anticipation and provide preparation time, but it also carries risks of limiting market exposure, potential regulatory non-compliance, and prioritizing agent interests over the seller’s. As the Toronto real estate market continues its dynamic evolution, both agents and consumers must critically evaluate marketing tactics. The ultimate goal should always be to ensure transparency, fairness, and the optimal outcome for the client, fostering trust and integrity within every transaction. Johnston’s insights compel the industry to reflect on whether current practices truly serve the best interests of all stakeholders, promoting a shift towards strategies that maximize value and uphold the highest professional standards.