Home Buying in Manhattan>Question Details

B, Home Buyer in Manhattan, KS

Is it common practice and legal to have an "Open House" on a property that is under contract?

Asked by B, Manhattan, KS Sat Feb 18, 2012

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The buyer under the current contract may have made a contingent offer with a kickout option, providing the seller a short while to receive a back-up offer. Another scenario where this may be happen is in a development consisting of essentially identical units, as in duplexes or town-homes, and the existing unsold units may not be finished enough to show. The only other reason would be if the home went under contract and the advertising for the open house had already been submitted and the Realtor feels obligated to proceed with it regardless.
0 votes Thank Flag Link Mon Mar 5, 2012
Tim is correct, most open houses are to find buyers for not only that house but other houses as well.
0 votes Thank Flag Link Sat Feb 18, 2012
You asked, "Am I correct that if the property is under contract the selling agent can no longer accept any offers?"

No, they can accept back up offers in case the primary offer falls apart. Some sellers want the reassurance of a back up offer.
0 votes Thank Flag Link Sat Feb 18, 2012
Did the property recently go under contract, if so, it's possible the seller is looking for back up offers, should the current deal fall apart...
0 votes Thank Flag Link Sat Feb 18, 2012
Wendy, thank you for being honest with buyers, as many are sadly not. It has been my experience that honesty will get you respect and great referrals.
0 votes Thank Flag Link Sat Feb 18, 2012
It is falls advertisement in my eyes. You advertise a certain property for a certain amount. So People come to view the house with intend to purchase, not to find a Realtor. If this is a common practice, then i no longer wonder why open houses do not sell houses or why there is little interest in open houses. And i believe it would turn serious buyers off, to run into this and other problems like houses still showing for sale when under contract or have been sold. I know it helps me to weed out Real Estate Agency's that i would not want to do business with. And for a fact know that I'm not alone on this.

This practice of bait and switch is just wrong. Just like a Car Salesman advertising a car that is no longer for sale. And then Realtor's wonder why they have a bad reputation. Am I correct that if the property is under contract the selling agent can no longer accept any offers?
0 votes Thank Flag Link Sat Feb 18, 2012
While real estate laws vary from state to state, if an open house is advertised then goes under contract prior to the event in our area, we would hold it open, informing customers of the pending sale, options for writing a back up offer and explaining the option period the current buyer may be in.
I am sure as a buyer this could be a frustrating event and when this does occur we as agent are often somewhat unsure how to deal with it but being on site and honest with prospective buyers is the best policy I have found.
0 votes Thank Flag Link Sat Feb 18, 2012
Legal - YES, why would it not be legal? Open houses are not to sell the house, they are to find more buyers for the agent that has the open house.
0 votes Thank Flag Link Sat Feb 18, 2012
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