NAR Addresses Risk Management Issues – Coming Soon Listings
On November 3, 2017, the National Association of REALTORS® (NAR) Risk Management Issues Committee (RMIC) met in Chicago, IL to discuss issues affecting REALTORS® across the country.
The meeting was attended by all five of Arizona’s committee representatives: Bill Ashker, Holly Eslinger1, Nicole Hamming, Marge Lindsay and J.T. Tsighis.
Disclosed at the committee meeting were the “top risk issues” identified by NAR following a nationwide survey that it conducted. Survey results included three issues accounting for a majority of the concerns.
Part Two: “COMING SOON” LISTINGS
“Coming soon” listings remain prevalent as housing inventory tightens in many markets throughout the country. However, such listings can prove problematic if not in the client’s best interest.
More specifically, if an agent recommends that their client withhold the listing from the MLS so that the firm or listing agent can have an exclusive window of opportunity to sell the property themselves, such may not be in the client’s best interest.
Typically, properties achieve maximum exposure through the MLS, meaning that the listing is viewed by a larger pool of potential buyers. Since a greater level of interest often results in a higher sales price, coming soon listings must be handled appropriately and agents should never place their own interests above those of their client.
According to NAR Senior Counsel, Chloe Hecht, coming soon listings may be problematic when:
- Use of coming soon status is not in the seller’s best interest and is utilized without the seller’s permission or consent
- The seller has not executed a listing contract
- The property is shown only to a select group of buyers
- Offers are accepted before the property goes active on the MLS
- Sellers are encouraged or compelled to accept offers from a buyer represented by the seller’s own agent.
For REALTORS® interested in attending a future meeting of NAR’s RMIC, the next one will take place in Washington D.C. at the REALTORS® Legislative Meetings & Trade Expo in May 2018.
1Holly Eslinger currently serves as vice-chair of the NAR Risk Management Issues Committee and will serve as chair in 2018.