question about "under contract" home prices

[rjrcm]

Originally Posted by ejarel

...We wait several days more and call they say they have a buyer and they will not be showing the home anymore. I go to the internet and see this same house listed as active. What I really want to know is, is this normal procedure or is it against some code of ethics to keep showing a property in the active status when you're saying you have a buyer? CM

It depends on the policy of the local MLS. For example, our local MLS requires status to be changed to pending or active with contingency within 3 days of an executed purchase contract. Violators are subject to a penalty ranging from a warning letter, fine, to termination of MLS access rights. Many websites will only note that a listing is active even if the MLS has a status of Active with Contingency. Other websites are slow to update changes, or do not update at all. You (or your agent) may have to directly check the MLS to get current status.

[Rakin]

It was pretty easy in the old days prior to all the short sales and foreclosures we've seen the last few years. You usually had a clear cut offer and acceptance which became a contract and the reputable listing agent would change the status to some status showing it under contract. That would then feed out to others so they don't waste their time showing the house.

With short sales and other bank owned property the contract could be contingent on approval by the lender. Many people , banks, and agents don't consider it under contract till the lender approves the sale which can takes months. Yet they don't want back up offers cause it can cause the banks to sit on all offers and drag their feet.

We good agents on here try to change the status to reflect the house being under contract as soon as possible. It's the right thing to do and what's fair to our fellow agents and their clients.

The problem is there is always a certain group of agents who will almost not change the status until very late in the game. Nothing worse than showing a house you think is available and it's not. Even we agents hate that.

Also, what's not right to the public is these homes will show up on websites way past the time for then to fall off. Not much we can do about private websites and how often they update. Occasionally you'll see homes on sites that have sold, closed several months back.

[boxedin]

The contrac buyer of my house was brought in by a real estate agent. Signed a conract immediately upon their buyers being able to get a loan. My first open house in 2days was cancelled.Their buyers were refused twice.It is 15 days later since the signing.They now want an addendum to allow their buyers to wait 3 more weeks so the buyers credit rating improves .They can receive a better mortgage rate and save money.I have asked my real estate agent to have an open house to see if there iare any other people interested. I do not think my house is sold.My new home will be completed in a few weeks and I am afraid I will not be able to sell my current home.