Hi Patti,

Due to the artificially inflated market prior to the recent downturn of the last 2-3 years, the localized markets of most of California are dominated by short sales (I would say at least 70% of our market is short sales). This is a trend that has developed over the last year and the industry is still adjusting. In fact, our local San Diego MLS just added a new status for listings about 2 months ago. The new "contingent" status was created for listings on which the seller has accepted an offer that has been submitted to the bank and is pending lender approval. While in contingent, the seller is typically still entertaining showings and taking back up offers. It is in the best interest of the seller of a short sale listing to continue to allow the property to be marketed because often by the time the short sale is approved by the lender(s), the first buyer has fallen out of love or has already found something else. For MLS systems that don't have a contingent status option, the agents keep the listing active with the same intention of generating a number of back up offers in the case that the current buyer walks.

Now, once the lender(s) have completed negotiation on the short sale and a full approval is granted with a buyer then escrow can be opened. At this point the listing should be placed into Pending and the marketing should cease while that buyer works towards a closing.

Unfortunately, since the industry is scrambling to adjust to a game with changing rules there has not yet been any clearly mandated guidelines by the DRE or the CAR as to how to handle the progression of a short sale transaction from the listing, marketing, negotiating, escrow and to closing. That's why you need an aggressive agent that's quick to try every angle in working towards getting you into escrow.

Best of luck!
Tara

Tara Steinke
Residential Sales & Appraisals
San Diego
619-384-6014
SDRealtor.Tara@gmail.com

Dear Patti,

I truly undestand your frustration. As a buyer's agent, I've come up against the same issues. However, when my buyer client asks to view a home, I won't even set the appointment until I am able to speak directly to the listing agent to make sure there are no pending offers. Then I call again on the day we are to view the property to make sure nothing has happened from the day we set the appoinment to the day we actually view the property This eliminates that problem. If you are working with an agent, ask them to do that for you. If you are not working with an agent, but would like to, I would be happy to refer one to you.

Linda

That being said however, I have to concur with some of what was stated in some of the previous answers.

We don't show homes once they have a contract on them here in South Carolina unless the status says "accepting backups". I do not put a sold sign on because as others have mentioned....deals fall thru. Another reason if someone sees that sign I may be able to find them another home to buy.

Greetings Patti,
Your frustration has nothing to do with the business of real estate. I GUARANTEE you if you were the seller you would be interested in having every interested party your side of the Mason Dixson Line View your home.

CONTRACTS DON'T CLOSE!!!! I repeat....CONTRACTS DON'T CLOSE...whether it's the buyer's fault (putting a $5,000 tv on a credit card two days before closing), the loan officers fault (not packaging a loan with all the documentation on a full-doc file), the lender's fault (I'm sorry, we don't have that product anymore) or an act of God (Buyer broke his pelvis skiing in Colorado)....things happen.

This is why we market, market and continue to market properties until the closing is done, deeds have transferred and funds have been dispersed. My clients appreciate the fact that I market by properties and clearly communicate..."I have a contact but if your buyer is truly interested in the property I would be more than happy to accept a backup offer in case of default. If the accepted bid does not close yours will be in 1st position."

It ain't over until the PHAT LADY sings and I remember vividly the deals that did not close when I DID NOT follow up with interested parties and it was walking the plank marketing, waiting and kicking myself!

We do it because it is in the best interest of the seller and more often than you know...it works out for the guy who was willing to wait and see what happened.

Good Luck...we are not out to get you...just doing our jobs. A property is 'For Sale' until it is SOLD.

You should be given the option of choosing whether or not you want to look at based on it being in escrow so if you are not being told it's in escrow that is kind of annoying. Based on my market....anything that fits your criteria and meets your needs is worth taking the time to see.

Good Luck,

Don't know how it is in CA, Patti, but here our MLS requires us to put the home status "under contract" within 3 days of an offer acceptance. So if you are looking on the multiple listing system, homes under contract won't even show up.

Now, if you are looking at a home that has a contingency on it (like having to sell another home before they can close), some agents leave the home on the market. If you come across one of those, the buyers are usually under a 72 hour clause which means if you Don't have to sell your home and you want to make an offer, the seller can invoke that clause to the buyer, and if the buyer can't remove the contingency....the seller can accept your offer.

Hope that helps....at least a little. Good luck in your house hunting, and let me know if I can help you in any way.

I agree with you a property should have some indicator that it is under contract or pending. I prefer to let potential buyers and agents know that my listings are pending so I don't waste anyones time. The down side of that is that roughly 17-28 % of escrows don't close with the first buyer and as agents we wish we had that buyer back who thought it was gone already. Some of our bank REOs actually require we continue to actively market the listings until all contingencies have been removed which maybe just a week or so before closing.

Hello Patti and thanks for your question.

Personally, I DO put a "Sale Pending" rider on my signs when a home goes into escrow for two reasons: 1) because I believe it to be proper disclosure to the public of the status of the home, and 2) to ensure that my clients (the sellers) are not continually disturbed by potential buyers when the home is no longer available for sale. I should note, however, that I put on this sign AFTER the buyers have removed all contingencies, and the likelihood of closing escrow is greatly increased. Until the contingencies are removed, I do not put a "pending" sign on the sales sign because there is every possibility that the buyer may decide not to purchase the home, and that "pending" notice will have scared off any potential buyers or back-up offers for my sellers.

I do realize that many other Realtors will never put a "pending" sign on their home, really no longer have to since the local MLS service (if available to the public) will clearly note that the home is no longer available for viewing.

Thanks again for your question!!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty

Most realtors do not post a pending sign because they want to continue to receive calls from the sign. it is a great way to pick up buyers.

Julie Stewart
Keller Williams Realty
Each Office Independently Owned & Operated
San Antonio, TX
210-860-5734