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June 4, 2009
Open Houses After Accepted Offer
My offer was recently accepted and we've begun the process of going into contract. The seller is having two open houses for the property on both Saturday and Sunday. Is it normal for a seller who has accepted an offer to continue showing the property? Two open houses seems aggressive - my fear is that they're hoping that they will get either a higher offer or an offer that is close to my final accepted bid so that they can have a bidding war. Do I have any rights before we enter contract because of the verbal offer and acceptance or do I just have to cross my fingers and hope a higher offer does not come in before we go into contract? Would appreciate any insight, especially from experience.
Thanks all!
Comments
It's quite common to keep showing until there is a signed contract. It doesn't mean that the seller is trying to start a bidding war (those were the days!) altho it doesn't mean they wouldn't accept a higher offer either. But there are so many reasons a deal could fall thru that in most cases the seller keeps showing so they will have a backup offer in case the deal doesn't happen.
Posted by: denton at June 4, 2009 6:27 AM
Yes! - I am selling my house now and even though I might accept your offer(happily) I would absolutely still want my broker to host open houses. This protects the seller from anything that might happen with the buyer -
What happens if you can't get financing, or the engineer finds $25K worth of work you are unwilling to deal with
so many things can go wrong for the seller.
Usually once parties go into "contract" is when the open houses stop.
Good Luck!
Posted by: gemini10 at June 4, 2009 8:55 AM
Brooklyncurious: As the above posters have said, it's normal. It would be madness for an owner to stop having open houses without a signed contract in this market. Is there a chance they can get a higher offer and accept? - yes, just as you can withdraw your offer if you find a better house at a lower price across the street. Until a signed contract is in the posession of both parties, an accepted offer means nothing to either party. Just make sure your lawyer works quickly but more importantly dilligently. Don't get emotionally attached, you too should keep going to open houses.
Posted by: Crownlfc at June 4, 2009 9:22 AM
I learned this lesson as well. Came to conclusion that it's sometimes better to not bid until after the last scheduled open house.
Posted by: Johnny at June 4, 2009 9:31 AM
Not to mention, you're paying the lazy ass realtor TENS of THOUSANDS of dollars... it doesn't hurt to make them work a little extra. At least make it seem like they earned their money. :-)
Posted by: tybur6 at June 4, 2009 9:56 AM
What the first three posters said. They would be crazy in this market to stop showing the place without a signed contract!
Posted by: feral at June 4, 2009 9:56 AM
seller's attorney putting your deposit check into the escrow account (ie you see your deposit check cashed / deposited) - that's when you can feel confident it's in contract. Then comes the financing hurdle to clear
Posted by: more4less at June 4, 2009 9:58 AM
Johnny - but a seller might (and probably should) schedule additional open houses until the contract is signed.
Posted by: Putnamdenizen at June 4, 2009 9:59 AM
Cross your fingers. Did you completely stop looking at other houses? They'd feel the same way if you didn't. One rule: Protect your own neck. You have NOTHING without an active contract and in some cases, NOTHING with one (accepted bid above appraisal, etc.).
***Bid half off peak comps***
Posted by: Brownstones Half Off at June 4, 2009 10:27 AM
Exactly until a check is deposited is when both parties can feel safe that the deal is moving ahead accordingly and neither party will pull out because something better came along!
Posted by: gemini10 at June 4, 2009 10:31 AM
I am hearing about more than one contract going out and being signed.
Does anyone know if this is legal?
Posted by: gs3 at June 4, 2009 10:49 AM
Yup, gs3. Perfectly legal until it comes back to the seller who then has to sign only one. I once bid on something where the seller distributed contracts and said the first one to submit a signed copy for X amount gets the house. I walked.
***Bid half off peak comps***
Posted by: Brownstones Half Off at June 4, 2009 10:58 AM
IF you offered to sign a contract or have delivered a signed contract to them for their signature AND they have refused to sign it and send it back to you (and are "shopping" your offer) ... tell them that unless they sign and return your contract BEFORE the open houses, you will withdraw your offer and never re-bid.
If they feel they have your offer "in their back pocket" as a backup bid, why wouldn't they try to get a better/higher offer?
You have to introduce some RISK that they may lose something (your offer) by playing the odds.
If you haven't signed (or offered to sign) the contract yet or are still negotiating points, I agree with the other posters.
This is NYC real estate ... if they're playing hardball ... you gotta' be able to do the same.
Posted by: Mr Joist at June 4, 2009 11:21 AM
Half, I am talking about seller signing more than one.
Posted by: gs3 at June 4, 2009 11:22 AM
Thanks all - my lawyer is saying the same thing. First-time buyer and I think I got way too excited about getting an accepted offer. Just need to keep looking until we go into K. Thanks all!
Posted by: brooklyncurious at June 4, 2009 11:26 AM
If you really love this house, sign the contract asap and push your attornet to get it back to the seller's attorney!
Good luck
Posted by: cggirl at June 4, 2009 12:00 PM
Think back to first-year contracts...or pull out your BAR/BRI review
Posted by: NorthHeights at June 4, 2009 12:16 PM
well, you free to take your offer from the table as well before you put your signature on the contract.
You can rush the contract or you can offer a few K more if somebody else will give better offer. But usually houses are on the market for long time and everybody who possibly wanted to see it already seen it.
When our offer was accepted and broker left the "For Sale" on the house, my wife was screaming. But it did not change a thing.
Posted by: bobjohn at June 4, 2009 1:47 PM
Did you schedule inspection yet? On your side as the buyer the best way to move things along quickly is to have an inspector lined up already and schedule him to see the house quick. If you delay inspection that's simply more time for the seller to show the house to other buyers. A buyer can give a deadline for a signed contract following inspection. Thing is if you say you'll walk away if you don't get a signed contract within 24 or 48 hours then you do need to follow through on that threat. So there's risk you wouldn't get the house. That's how I got my first house on which there were several offers and I wanted to avoid a lot of back and forth in a bidding war. Mine was the best offer and I was willing to buy the house as-is, so I said take it or leave it, you have 24 hours to decide or I walk. It's nervewracking but in certain situations it can be the thing to do.
Posted by: traditionalmod at June 4, 2009 1:56 PM
"Half, I am talking about seller signing more than one."
Oh. I'd say illegal and/or very complicated. But it usually doesn't work that way. The seller originates the contract unsigned.
***Bid half off peak comps***
Posted by: Brownstones Half Off at June 4, 2009 2:20 PM
Cross your fingers and hope they get a lower offer...
Posted by: raphael9 at June 4, 2009 2:24 PM
I've had 2 accepted offers that fell through. Luckily for me they both happened before the October market collapse. In both cases, the sellers found better offers after they accepted mine. I wouldn't worry about a bidding war in this market.
Posted by: dirtyrotten at June 5, 2009 9:39 AM
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