Don Fritsch

What are “Coming Soon” Listings?

These are properties that are advertised for sale without being listed with the local multiple listing service (MLS). Agents advertise these properties through broker websites, Facebook, Zillow, e-mail blasts, yard signs, flyers, etc.—but not in the MLS.

What is the problem?

One problem cited by the NAR is related to the recent, ongoing shortage of residential inventory. Not all buyers know about coming soon listings and so some buyers can lose out on opportunities if they are not tuned into the right information channels outside of the MLS. This is not fair to those buyers, many of whom may have already made offers in multiple offer situations, did not prevail and are getting frustrated.

Why would a seller agree to not listing with the MLS?

Privacy is one reason for not exposing a property to the broad reach of the MLS. Sellers who are celebrities or are going through a sensitive divorce may feel their privacy is more important to them than the benefits of a larger buyer pool. Advertising a property as coming soon can allow a seller to test the market while final repairs, decluttering and staging are being done.

What is seller assist?

One reason seller assist is confusing is that it is misnamed. It should be called “funds borrowed by buyer for closing costs” because that’s what it is. Here’s how it works. You and the seller agree that you will pay $100,000 for the seller’s property. You are short the cash necessary to complete the purchase by $3,000. So your agent writes up the sales agreement for $103,000 with $3,000 of seller assist.

What are the limits of seller assist?

Lenders impose limits on the amount of seller assist. At the time of this writing, conventional loans allow a maximum of 3% with a down payment of less than 10%. With 10% or more down conventional loans allow up to 6% seller assist. FHA loans allow 6% seller assist even with the current minimum 3.5% down.