Home Selling in 07042>Question Details

Marlis Dunn, Other/Just Looking in Saint Pete Beach, FL

Is there a process by which the seller can accept an offer, but continue to show the house until the mortgage commitment comes through?

Asked by Marlis Dunn, Saint Pete Beach, FL Thu Sep 29, 2011

I have heard stories of seller told 2 days prior to closing the mortgage has not been approved. This is a lot of time lost in the market pool.

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Cindy,

Sure there is. You just put in writing that the house has a contract, but you will continue to show for backup offers only until your receive the mortgage commitment.
i have done this many times, usually till out of attorney review, sometimes until inspection contingency clause has beeen settled, and ocassionally till the mortgage commitment is received.

Bear in mind though, many buyers are not going to waste their time looking at your home while it already has a contract, nor are they willing to wait to see if their "back-up" offer will become the primary offer.

You CAN ask that the buyers get a mortgage pre-approval, rather than a pre-qualification, or even ask that the buyers get pre-approved/qualified through a bank/mortgage broker whom you trust for a little more peace of mind.
Most mortgage commitment dates (at least here in NJ) are in the contract, and are usually 30 days after contract signing, and typically the closing is another 30 days after that, so you should never hear 2 days before closing that the mortgage has been denied.
0 votes Thank Flag Link Thu Sep 29, 2011
Dear Cindy,
A listing agent, especially in this market, would be smart to continue to show a home that has an accepted offer until the mortgage committment comes through, for back up offers. We used to just wait until attorney review was complete, but now with lending requirements being more difficult, it's harder to get those committments. The Garden State MLS has recently added this status to listings, which is called: Under Contract, but Continue to Show. I know that it is a great inconvenience to have people trekking through your home, but it is in your best interest.
Good luck!

Luisa Esposito
Realtor, Coldwell Banker
973-233-2045
1 vote Thank Flag Link Thu Sep 29, 2011
You've gotten good responses from my collegues - there is a status in the GSMLS called "US" - "under contract, continue to show". To the public, it appears active, an agent can see that it has a contract. To Mary's point, some buyers will not want to get involved if an accepted offer is in play, but the status is in place to allow you to acknowledge you are under contract, and continue to show.

If you do this, exercise care. I have also seens situations in which a good deal, with a qualified buyer has gone bad because the buyer was so rattled by the property continuing to be shown.

Best,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes Thank Flag Link Sun Jun 10, 2012
In NJ, upon approval of the seller, we are able to show the house until the day of closing.

Please contact me directly if I can be of further assistance.

Judith Amorim Dias
973-444-5643
judith.dias@prudentialnewjersey.com
http://www.prudentialnewjersey.com/judith.dias
0 votes Thank Flag Link Thu Jun 7, 2012
Yes you can continue to show until closing,what you cannot do is accept another offer(sign another contract)until the current contract is cancelled by the buyer and seller or their Attorneys. You can hold any offers as back-up offers,Just be sure not to sign it untill the current contract is cancelled. Your challenge may be that buyers may not want to wait to see if the current contract goes thru,especially with so many home on the market
0 votes Thank Flag Link Thu Sep 29, 2011
A seller can continue showing the home until closing and can hold back-up offers. What a seller cannot do is accept another offer(sign another contract) after attorney review is completed,unless the current sale falls thru and is cancelled by buyer and seller or Attorneys ,if attorneys are being used.Your concern is quite legitimate,It has happened where a mortgage is denied just before closing.Your challenge may be that most buyers do not want to take that chance waiting for the other offer to fall thru,especially with so many homes on the market
0 votes Thank Flag Link Thu Sep 29, 2011
Hello,
On the MLS there is a U/S which means under contract continue to show. Your Realtor should have mentioned this to you. However, you cant sign 2 contracts. Speak to your attorney. And, good luck
0 votes Thank Flag Link Thu Sep 29, 2011
Disclose there is a contract and invite backup offers contingent on the results of the primary contract.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Thu Sep 29, 2011
A seller can continue to show their home while under contract however, if there is a ratified, written offer signed and executed by all parties, then any subsequent offer is considered a back up offer and can only become the primary offer if the first offer becomes void.
0 votes Thank Flag Link Thu Sep 29, 2011
Cindy there is, is called either under contract, continue to show, or variations of it are pending, continue to show or under contract pending to show. So yes you can accept a contract and continue to show your home for a back up offer. Some purchase agreements actually have a box to check whether you can or not continue to show so ask your listing agent and make sure you read your purchase agreement. good luck with your sale
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Sep 29, 2011
Cindy:

Any good offer should be accompanied by a proof of funds for a cash buyer, or an approval letter (not pre-approval) from a lender, showing the buyer has already made a mortgage application and gotten approved for a specific amount. Your listing agent should specify on your listing in the MLS that either of these needs to accompany any offer.

If you are selling your property as a short sale, you can continue to market it in our MLS (of which St. Pete is now a member) under "active with contract" status, meaning you can accept back up offers until your lender approves your first offer and sales price.

Best regards,
David Barr, Broker Associate
Sandals Realty
941.870.0656 direct
0 votes Thank Flag Link Thu Sep 29, 2011
Yes, we have a categoryin the MLS that is US - "under contract continue to show". Buyers, however, are going to balk so there has to be a compelling reason to continue showings and showings should be for back-up offers only. The standard sales contract does include a deadline for securing a mortgage commitment and it should be adhered to.
0 votes Thank Flag Link Thu Sep 29, 2011
Hi Cindy,

It all depends on what the contract between the buyer and say but some sellers take what is called back up offers just in case the buyer does not get the mortgage.

This way, they have someone ready to go so time is not wasted on finding a new buyer that starts from scratch.
Web Reference: http://fredglick.com
0 votes Thank Flag Link Thu Sep 29, 2011
If an offer is accepted, and an execured contract exists, signed by all parties and deposit money has been exchanged--any other offers thereafter are considered back ups, entertainable if and when the current deal falls through.
0 votes Thank Flag Link Thu Sep 29, 2011
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