Home Buying in Holmdel>Question Details

JmNYC, Home Buyer in New York, NY

Keeping listing open - why does this happen when a contract exists

Asked by JmNYC, New York, NY Thu Sep 2, 2010

Two contracts on a house - one is more attractive - mine is less so. They seem to have accepted the first contract however are keeping the house listed and not saying it is in contract (the buyer and seller agreed to this). Is this possible? They didnt respond to my offer as well.

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Another possibility is if this is a short sale. Sometimes the lender will not allow the home to be put as "under contract" in the hopes higher offers will come in. The buyer must be made aware of this and it is normally an item added in attorney review.
I would not let an offer go unresponded to. Have your agent send their agent an acknowledgement paper that says that he/she presented your offer to the sellers.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Mon Sep 6, 2010
As a follow up, I would suggest including an acknowledgement of offer received with future offers, and certainly with additional attempts with this seller. Include a summary of the terms of the offer and a place for the sellers to sign as acknowledgement that they have seen your offer and ask that it be returned to your agent.

Best,
Jeanne Feenick.
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Sat Sep 4, 2010
JmNYC,

In Monmouth County the listing Realtor is required to place the home in "under contract" status within 48 hours of the completion of attorney review. While the attorney review period is stated as 3 business days, many times this period is prolonged.

I might also mentioned that it once the Realtor places the property "under contract" it can take up to 48 hours for it to disappear from available status on various Real Estate websites.

I'd hang in there as it pertains to your desire for this property . . . . u never know how this deal with progress and if it "falls through", quite possibly your lesser offer may become attractive to the seller.

Good Luck,

Love and Peace,
Francesca Patrizio, ePro, SRES
Francesca@PatrizioRE.com
732.606.2931
Web Reference: http://www.PatrizioRE.com
0 votes Thank Flag Link Thu Sep 2, 2010
No response to your offer is unacceptable, how do you know they ever received it? Did you send it to the sellers attorney?

Why would they continue to have it listed unless there is contingencies that not been met.

The sellers agent maybe trying to generate more buyers who would call him direct.

Multi offers on a home usually means it was under-priced, were you offering a fair amount or making a ridiculous offer and trying to steal it.

Your Realtor should be giving the correct guidance and you should be listening and following there direction.
0 votes Thank Flag Link Thu Sep 2, 2010
I would be leery of an open-ended offer. If you find another property that you want to purchase, you will have a hassle canceling this offer...and in an extreme scenario, you could be required to perform even if you no longer want to.

In my area, "pending" or "contingent" is placed in the MLS listing to show that there is a contract, and that there are details to be worked out. Many sellers like to take back-up offers, especially in this difficult time when it is so hard to qualify for a mortgage.

No matter what, you should have received a response...either a counteroffer or a refusal. To neglect this is rude, IMO. Good luck to you!
0 votes Thank Flag Link Thu Sep 2, 2010
Thanks Jeanne - very helpful.

So the offer they are pursuing is higher - but has contingencies. They are keeping the listing open in case it falls apart. My offer is 10% from listing - so not far off. My offer also does not have an expiration date - should I put an expiration date maybe 10 days before their scheduled closing. If it is getting close to closing and they still don't have a mortgage - they would consider mine more seriously? Or should I just keep it open ended? Any advice on a strategy?
0 votes Thank Flag Link Thu Sep 2, 2010
This is possible. In our area, the deal is first in an intial attorney review period and it will continue to show as active, perhaps with an "*" to show that there is an accepted contract, but it is not required by most MLS'. If the seller has asked that the property continue to be shown for back up, then it can be. I always think there is a risk that it will upset the buyer/bird in hand, but these days with the number of deals that are falling thruogh due to inspection disagreements or mortgage issues, I do see more of this. Very recently a new status was added to the Garden State MLS, Under Contract Continue to Show (UCS) that would be perfect for this scenario. What I find maddening, is when a property that is under contract remains active and there is no mention in the listing. This can be a big time waster for interested buyers and the agents that serve them.

If the listing agent is doing this at the request of the seller to draw back ups then that is one thing. If the listing agent is keeping the property active just to keep his phone ringing and then divert that interested party to other listings he may have, then that is a whole other matter that I do object to. In the later case, it is wasteful of buyers and agents time and also not serving the sellers best interest. It can really unnerve the buyer and cause a good deal to go bad - I had this happen once and in fact the very good deal did unravel, and at least in part, it was because the buyer was unnerved by the fact that the property status was never changed to Under Contract even after multiple requests to the listing agent.

What I don't like to hear is that you did not get a response to your offer. I'm sorry to hear that.

You'll get the next one!

Best,
Jeannne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Thu Sep 2, 2010
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