What does “Coming Soon” mean in the Twin Cities?

{Spring 2021 Update: At the time of initial publication regional Northstar MLS “Coming Soon” properties were not synched to IDX (Internet Data Exchange) sites like Zillow. Agreements between Northstar and those sites have since changed — all Coming Soons are now shared and visible.}

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Spring 2019 marked the first home-selling season with the regional Northstar MLS’s “Coming Soon” status in play. The parameters for listing a property as “Coming Soon” are well defined by our MLS and many agents have started strategic use of this option. There may be some confusion for consumers, however. Here’s what home buyers and sellers need to know when they see a home listed as “Coming Soon”.

It’s not Zillow

It’s not the same as Zillow’s “Coming Soon”. In fact, unlike Active, Pending and Sold MLS listings, “Comings Soon” properties are not even visible on Zillow. Northstar MLS has not (yet) contracted with Zillow or similar synched-up sites like Trulia to allow access. Zillow has rights to display homes with other listing categories, but not this one.

This MLS option should not be confused with a similar feature on Zillow that allows home owners and “Premier Agents” (Realtors paying to advertise) to create separate Zillow Coming Soon listings. The two are not the same. Our MLS “Coming Soon” properties can only be viewed by MLS subscribers (agents, brokers and real estate professionals) and are typically emailed directly to clients via the MLS database.

Coming soon…how soon?

A property can be “Coming Soon” in the MLS for a maximum of 21 days. With home seller approval, the agent/broker manually sets an activation date when creating the listing. When that date hits, the status automatically switches to “Active” and goes live on major search sites. If the sellers aren’t ready to show by that date they have a couple of options: cancel altogether or switch it to TNAS (Temporarily Not Available for Showing) — a common short-term delay maneuver used for a variety of reasons (unexpected repairs, houses guests, etc).

Can I tour a “Coming Soon” listing?

Strict rules set up to create fair play prevent listing agents from showing a home when its status is “Coming Soon”. In fact, an agent could be fined $1000 for doing so. Once a home is “Active” in the MLS sellers should be ready to allow showings, but not before.

Buyers’ agents can, however, request showings for anytime after the “Active” date, even if it’s 3 weeks out. So if you want to be the first one in a property once it’s live/active, get a showing appointment request in asap. Planning ahead to be the first one to view a home is a smart move in a tight seller’s market.

Why no photos?

“Coming Soons” require a minimum of one photo to be listed. Some agents are adding more now but I still see many with just one or two exterior shots. This can be a source of frustration for buyers whose interests are piqued by location, price and curb appeal but still want to see the inside. If you’re not seeing the full set of photos right away do check back. The listing agent will likely add the rest on or near the “Active” date.

Buyer advantage

In this fast-paced seller’s market the “Coming Soon” option may give buyers some room to breathe as well as the luxury of lead time for making a sound decision. If enough information is revealed in a “Coming Soon” listing (full set of photos for example) buyers may be able to decide yea or nay before it goes active. If the home is of interest, shoppers can use the interim to mentally prepare their offer price and terms, jockey schedules for a fast future showing and connect with their lender for an updated pre-approval. It may enable them to act swiftly with a competitive offer when the time comes.

Seller strategy

If you’re contemplating selling your home, you should seriously consider your options for a successful entrance into the market. Creating an effective “Coming Soon” listing is one strategy but it might not be right for your situation. A poorly planned entrance can easily backfire, even in a hot seller’s market.

Create a course of action that makes sense with current buyer activity and your target market — of course I recommend working with a real estate professional when doing so. A good agent who stays on top of local trends (what’s working and what’s not) will be an invaluable resource in helping you take advantage of the seller’s market now in full swing around the Twin Cities.

If you want to know more or need some advice I’m happy to talk through selling (or buying) strategies. If you want to keep watch for “Coming Soon” listings in particular neighborhoods or cities, I can set those up as well.

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

Should I hire a Realtor? What type of representation is available in Minnesota?

If you are buying or selling real estate in Minnesota you should know what type of agency representation is available to you as a consumer. Realtors® in Minnesota are required to talk about this with potential clients early on in any communications. If you start talking about your price, terms, or motivation with an agent, expect to be presented with a written disclosure and explanation about different ways agents can represent their clients. This is for your benefit and agents are required to share it. Feel relieved rather than pressured when getting the form — it’s a disclosure, not a contract and will equip you with valuable information to help in your process. If an agent does not present it when you think they should, ask. A good agent will be adhering to ethical standards and this initial interaction may give you insight into future communications and relationships.

To help home buyers and sellers better understand Minnesota’s agency disclosure requirement, the St. Paul Area Association of Realtors® created this quick video. Check it out to learn more!

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

Learn the Lingo: Common Real Estate Terms Defined

In the real estate field, like others, industry-specific words can sometimes be confusing to an outsider. If you're planning on buying or selling, it's a good idea to get versed in the lingo, or at least familiar with some key terms. Below is a list of some of the most common words you'll likely encounter in your process, explained in plain English.

CMA (Comparative Market Analysis)

A side-by-side comparison of your home with similar homes that have recently sold, been listed or expired in your area. Created by a real estate agent to help determine an accurate listing price when you sell. Can also be done for buyers who are trying to determine a fair offer price. 

Purchase Agreement (aka PA)

The document (and all related contingencies) listing the price and terms of your offer. Once signed by both buyer and seller, the PA becomes a legally binding document.

Contingency

A provision in the Purchase Agreement stating that certain conditions must be met in order for the sale to be valid. Usually includes specific time periods for completion. Most common are contingencies fo buyer inspections and financing.

Addendum (singular) / Addenda (plural)

Documents added to the Purchase Agreement as supplements to the offer — add ons. Examples include counteroffers, purchasing “as is”, disclosures of lead-based paint, and buying a Common Interest Community (condo, townhouse, co-op).

Amendment

A document outlining any changes made to the final Purchase Agreement. Must be signed by both parties to be valid.

Mortgage

A “debt instrument” used to secure a loan on a home. The property is used as collateral for getting the loan money.

Closing Costs

Money paid at the closing to cover the costs of transferring ownership of a property. They can include a variety of fees to different service providers such as the title company, lender, broker, etc. Paid by both buyers and sellers.

Seller's Disclosure

A document filled out by sellers disclosing all known material facts and details about the home. Minnesota requires this (or a Seller's Disclosure Alternative form) be completed prior to selling. Must be made available to buyers and signed by them when submitting an offer.

MLS (Multiple Listing Service)

A database service real estate professionals subscribe to that stores up-to-date listing information including current properties for sale, homes sold, and listings cancelled or expired. Several MLSs operate around the country. The Twin Cities and Rochester regions use the “Northstar MLS.”

Earnest Money

Cash paid by buyers when making an offer as a show of "good faith". It's optional and can be any amount (1-2% of the sale price is typical.) Intended to go toward the downpayment if you end up buying the home.

Conventional Loan

A home loan not backed by the government. 

FHA Loan

A home loan backed by the government (Federal Housing Administration). Downpayment requirements are usually lower than those of conventional loans, however, purchasing mortgage insurance is usually required.

PMI (Private Mortgage Insurance)

Insurance you pay when you put down less than 20% on a conventional loan.

MIP (Mortgage Insurance Premium)

Insurance you must pay when financing with an FHA loan.

Title Insurance

Insurance paid to protect against claims on the title of your property. Lenders require it for their own protection. Buyers can also choose it for self protection. Ask your title company about costs of coverage.

Arbitration Agreement

A document that allows buyers and sellers to agree to settle disputes about the property outside of court. Optional for all involved in the transaction including buyers, sellers and their agents. Must be signed by both buyer and seller to be valid.

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

What do all those listing terms mean?

Like any industry, Real Estate maintains a language of its own, with shorthand jargon and specialized terms used daily by those in the biz. But lingo used by housing professionals can sometimes be confusing when you're shopping for homes. This list might help. Common terms found in home listings, explained in everyday English:

A (Active)

This means the property is on the market, available, and open for offers. Sellers may have received an offer but have not yet accepted it.

A,i (Active, Inspection)

Sellers have accepted an offer contingent on a buyer's inspection of their property. Depending on what's written in the offer, the whole process of inspecting and negotiating based on the results takes about 7-10 days.

A, r (Active, Subject to Statutory Rescission)

The sellers of a condo, townhouse or co-op have accepted an offer which is contingent on the buyers reviewing all association governing documents and financials. After receiving the final document, buyers have 10 days to review them. They can cancel the offer at anytime during this period, for any reason.

A, s (Active, Sale of Another Property)

The sellers have accepted an offer from people who need to sell a home in order to buy a new one. Their buyers are most likely not financially able to own two homes at once. Or, they are but have chosen not to. The listing is still on the market and open for other offers. Depending on what’s written in the offer, the first buyers will have a short time during which to make good on their offer, if they can.

A, o (Active, other)

A, o  means the sellers have accepted an offer with a contingency that could be anything other than Inspection or Statutory Rescission. For example, if it's a vacant lot and buyers want to get building plans approved by the city before committing, they would submit their offer contingent on the city approval.

P (Pending)

The sellers have accepted an offer and are set to close. This usually means the inspection period has passed and all other contingencies (except Financing) have been lifted.

T (TNAS)

This stands for Temporarily Not Available for Showing. It typically means the listing is active but sellers wish to make the property unavailable for private showings, for whatever reason. Maybe they have company staying with them or are making repairs or remodeling. It might also mean they've accepted an offer and are getting a buyer's inspection. In this case, agents are required to add an “i” after the TNAS signaling the inspection contingency.

If you are curious about a home with this status, ask your agent to contact the listing agent directly to get more information. Keep in mind sites like Zillow currently do not display property with TNAS status. These homes are only visible in the MLS database, accessible to subscribing real estate agents. 

Coming Soon

The Northstar MLS recently added a “Coming Soon” status for new listings. During this period at least one photo must be displayed, and homes cannot be shown (a hefty fine for agents who do.) Properties can remain in this status for up to 21 days after which they will automatically become “Active” and available for showings, as permitted by the sellers. The Active date should be visible next to the status bar.

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This list represents terminology from one of Minnesota's regional MLSs (Multiple Listing Services). Other MLS databases across the state and country may have similar terms with slight variations. 

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.