Table of Contents Show
Elated homebuyers in New York City whose offers have been accepted may be surprised to see open houses continue for their dream apartment. While an accepted offer is a significant hurdle cleared, the post-offer period can be a time of unexpected activity.
We explore the reasons showings might persist even after a buyer’s offer is accepted and offer guidance on navigating this potentially anxiety-inducing stage of the real estate process.
Uncertainties Linger Before Contracts Are SignedUncertainties Linger Before Contracts Are Signed
In the fast-paced world of New York real estate, an accepted offer signifies a buyer’s intent. While the property might be marked as “pending sale” or undergo limited showings, it often remains technically available until contracts are signed. This reflects the reality that the deal hasn’t been finalized yet. Buyers have a due diligence period, typically five business days, to delve deeper into the property’s condition and conduct a home inspection and attorney review of the contract and building financials. This period can uncover unforeseen issues, potentially prompting renegotiations or even a deal falling apart.
Recognizing this uncertainty, sellers and listing agents want to keep their options open. Continued showings allow them to entertain backup offers if the primary deal collapses during due diligence. These backup offers, often from interested parties who viewed the apartment earlier, can expedite the process if the initial agreement falls through.
The Ever-Present Allure of a Last-Minute BidderThe Ever-Present Allure of a Last-Minute Bidder
The allure of a higher offer can be a powerful motivator for sellers, particularly in a competitive market. Even with a verbal agreement, many listing agents might continue showings to attract a last-minute bid that surpasses the accepted offer. While potentially frustrating for buyers, this practice reflects the reality of a seller’s desire to maximize their return.
Mortgage Contingency ConsiderationsMortgage Contingency Considerations
Many offers in New York real estate are contingent on securing a mortgage. This contingency allows the buyer to withdraw from the deal if the value of their loan does not match the asking price or the mortgage application is denied. However, this contingency also creates uncertainty for sellers. Suppose the seller receives a cash offer without a mortgage contingency during the buyer’s due diligence period. In that case, it may sway the seller to withdraw and take the cash offer.
Beyond the Basics: Additional ConsiderationsBeyond the Basics: Additional Considerations
The intricacies of the New York real estate market extend beyond these primary factors. Here are some additional situations that can influence continued showings:
Co-op Board Approval: Board approval adds another complexity for co-op purchases. Even with a signed contract, the deal can fall if the board rejects the buyer’s application. This risk incentivizes some sellers to keep showings active until the board formally approves.
- Exclusivity Clauses and Time on Market: While less standard, exclusivity clauses granting the listing agent the right to market the property for a set period, even with an offer, can influence showings. Similarly, sellers who’ve had their property on the market for a long may be more hesitant to take down the listing immediately.
Communication is Key: Easing AnxietiesCommunication is Key: Easing Anxieties
Open and honest communication with the seller’s agent, buyer’s agent, and lawyer is paramount during this period. Expressing a desire for a smooth and swift closing and inquiring about the contract signing and deposit exchange timeline can help alleviate anxieties. Understanding the seller’s motivations for continued showings can foster trust and a more collaborative process.
Navigating the Maze: Tips for BuyersNavigating the Maze: Tips for Buyers
Knowledge is power. By understanding the reasons behind continued showings, buyers can take proactive steps to ensure a smooth transition from “accepted offer” to “happy new homeowner”:
- Expedited Contract Review: Working diligently with a lawyer to expedite the contract review and approval process can shorten the seller’s window for considering other offers. The quicker the contract is signed, the sooner the property is officially off the market.
- Preparedness to Negotiate: If a higher offer emerges, buyers may have the right to match the higher or counter. This requires careful consideration of factors like the strength of the competing bid and their financial comfort level. A flexible closing date can incentivize the seller to stick with the initial agreement.
- Open Communication with Agent: Regular communication with the buyer’s agent is crucial. Highlighting any concerns about continued showings and discussing strategies to address them can provide peace of mind. A proactive buyer’s agent can advocate for their client by negotiating with the seller’s agent to limit showings or requesting updates on the status of the backup offers.
- Attorney Review of Contract: Consulting with an experienced real estate attorney can ensure the contract is buyer-friendly and addresses potential contingencies that could derail the sale during due diligence.
The Bottom LineThe Bottom Line
The post-offer period in New York real estate can be a whirlwind of emotions. While an accepted offer is a cause for celebration, lingering open houses can be a source of anxiety. Understanding the reasons behind continued showings and taking proactive steps can significantly ease these concerns.
Remember, patience and clear communication are essential. Working efficiently with legal counsel and the buyer’s agent, being prepared to address unforeseen issues, and openly communicating with the seller can pave the way for a successful closing and a joyous move into the dream apartment.