BEST ANSWER
Hello Ladybug and thanks for your email.
As the others have already noted, unless the seller's have requested otherwise, a home may continue to be shown even after a contract has made for its sale. In Northern California, we have different levels "pending" sales notes that can be placed on the home's MLS listing--PR, PN and PS. Depending on which form of "pending" is attached to the home sale, we (as Realtors) know we can still show a home or can no longer show the home (because contingencies have been removed) or can show the home for a while as there is an impediment that may be blocking consumation.
One of the reasons that many sellers continue to show homes is because so often a buyer cannot or will not complete the sales transaction. In some cases, the failure is due to an appraisal problem, or funding or investigations. In other situations, the buyer gets "cold feet", so it can be good to continue to market the home until all parties have removed contingencies and are closer to the end of the transaction.
What we have seen in the past, especially here in Santa Clara, are some agents who have short sale listings where the seller has executed a sales contract, but the listing is still seen on the MLS as "active" or available to buyers when, in fact, there is someone in the way. Because this is both confusing and frustrating to buyers, I saw a notice today on our MLS listing service reminding all agents that they MUST set the home to "pending" when the seller has executed a sales contract even if all parties are still waiting for bank approval. As more and more MLS services require agents to show a "pending" or "under contract" status for short sales and REOs that have agreements but are waiting for approvals from lenders, it should help the average consumer better utilize his/her time in their home search by seeing if a property is truly available or sold, pending approvals.
Good luck and happy house hunting!!
Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
Thu Jul 9 2009, 18:30