Priming the Real Estate Pump
The latest episode of Star Wars didn’t just land in movie theatres last December.
Trailers hyping the movie started appearing in July.
July, 2014.
Ditto for new music albums (at least for any performers not as well-known as Beyoncé), upcoming book releases, tv shows, and even new restaurant openings.
Why should selling residential real estate be any different?
Three Rules
In fact, what Realtors call “pre-list marketing” very much serves Sellers’ interests, by building market awareness of an about-to-debut, choice property in a hot neighborhood, that’s priced to sell (as they say).
Depending on the price point and property, typical steps include agent-to-agent networking at the many meetings Realtors attend weekly; blast and targeted emails; at least for Edina Realty agents, plugging the home on the company’s proprietary Network One; and publicizing the upcoming listing online (including on certain high-profile blogs 🙂 ) and via neighborhood postcards.
But, doing pre-list marketing aggressively and well, within MLS rules hinges on these three things:
One. Client Permission. It’s fine to have a “For Sale” sign in the front yard before the home is officially on MLS, provided the owner has signed a “Withhold from MLS.”
Without that, MLS rules require that homes be promptly put on the market, allowing all area Buyers’ agents to show and potentially sell the property — vs. just the listing agent, who sometimes only markets to their own clients (a practice called “dual agency,” which very much does not serve Sellers’ interests; see, “Rule #2”).
Similarly, before Edina Realty agents can market their clients’ homes on Network One, the owners must consent.
Two. The listing agent forswears also representing the Buyer — something I contractually agree to every listing I take.
No one can serve two masters, and no Realtor can simultaneously try to negotiate the best possible price for both the Buyer and Seller in the same deal.
At least in the opinion of this former attorney, that’s the very definition of a conflict of interest.
Three. Lead Time.
Sending a blast mail to 2,100 Edina Realty agents, or putting a “For Sale” sign in the front yard in February when the house won’t be on the market until May isn’t pre-list marketing.
It’s annoying — at least to active local Buyers and Buyers’ agents who are paying attention.
Meanwhile, the day before doesn’t make much sense either.
The compromise: about two weeks ahead.
With all those pieces in place, pre-list marketing increases the odds that, when a new listing hits the market, motivated, well-qualified Buyers will already know about it and be ready to pounce.
See also, “Coming Soon!”: How Good Pre-List Marketing Distorts Days on Market“; “Have a House/Need a House”; “Jumping the Gun on Networking”; and “Does Networking Really Work?“
