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VOL. 46 | NO. 11 | Friday, March 18, 2022

Coming soon or already sold? This game’s getting old

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Mammals are unable to be slightly pregnant. They either are or they aren’t. Real estate, on the other hand, can be slightly for sale.

The term “Coming Soon” fills sellers with elation as they anticipate thousands of potential buyers saving the searches on the various unreliable websites and standing in queue in order to enter the homes when the whistle is blown, the starting gun fired or the horn sounded.

However, that “Coming Soon” home is often sold – as in under contract, off the market, not available – before the line can form.

How can this be? Easy.

“Coming Soons” are the worst thing to happen to the real industry in its history because most people do not understand the process and, secondarily, do not play by their own rules. In fact, they cannot, as the ground rules they laid go against regulations established by the Tennessee Real Estate Commission.

If a property is coming soon, it should not be for sale. However, the Tennessee Real Estate Commission requires that all offers be submitted to sellers.

While many spectators are enjoying the real estate wars from afar, many of the combatants have tired of the game. Buyers feel making cash, as-is, no-contingency offers with earnest money checks of five, six or even seven figures should be worth something, not pitched into a stack and referred to as one of the “multiple offers.”

So the fact is, “Coming Soon” houses are for sale. If an offer is made, the buyer can accept it, and the property is sold even if the listing says the first showing is in 10 days.

If the broker and the seller stick by their guns and allow showings when they said they would and review offers when they said they would, many buyers who would have paid the big numbers leave the game, for they were not interested in an auction, and they did not want to fall into a stack with all the other offers.

Many try to sweeten their offers with nice notes of family, schools, jobs and religious affiliations. Sellers do not care that the buyer has children and pets or where they worship. They scream “Show me the money!”

If the Real Estate Commission requires offers be presented, and the house is not being shown because of its ridiculous coming soon status, what is to keep a buyer from presenting a sight-unseen offer with a deadline before the house is supposed to be available? Nothing, and it happens all the time.

It might be an offer the seller cannot refuse. So, the sellers accepts the offer.

But wait! What about those who checked the “save” box? Those who bought airline tickets and booked hotel rooms so they could see the house? They are out of luck.

Is there no recourse? They contact attorneys, managing brokers, the Greater Nashville Realtors and demand justice. They threaten to seek injunction stopping the sale.

“Coming Soons” are so cute. They really drum up the interest.

How did this happen? Years ago, many Realtors put “Coming Soon” signs in yards and so that they could collect a passel of buyers. They would, in many cases, not let their fellow Realtors into the home but would allow unrepresented buyers into the property.

Even better, they built a list of buyers and, at that time, buyers were golden since there were so many listings on the market.

When the practice proliferated, the MLS systems decided to try to inject some order to the chaos. It did not work, mainly because the system relied on humans.

Sale of the Week

High-end downtown condominiums are selling as well as high-end homes in the suburbs.

207 Third Avenue #402

Last week, 207 Third Avenue North, unit 402, sold for $2.125 million in less than a day. With 2,700 square feet, the condo is one of the larger properties and overlooks historic Printer’s Alley. Martha Montiel-Lewis, a leader in condo sales, describes the home as an “appointed 1890s oasis.”

The space has exposed-brick walls, three bedrooms and three bathrooms along with a gourmet kitchen with Sub-Zero appliances and a fully equipped wet bar conveniently overlooking Printer’s Alley. Montiel-Lewis is with Compass RE.

Known as the Phoenix Lofts, the condo has access to an attached garage with reserved parking. The previous owner paid $540,000 for the property in 2012.

Richard Courtney is a licensed real estate broker with Fridrich and Clark Realty, LLC and can be reached at richard@richardcourtney.com.

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BUILDING PERMITS 0 0 0
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UTILITY CONNECTIONS 0 0 0
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