offer accepted but still looking

Perfectly acceptable, don't worry about it. That's not to say I condone just throwing out offers with no intention of backing them up but you're acting in good faith and in your own interest. Just as it would be ok if the seller dropped you for another bid, you have no obligation (legal or otherwise) to proceed until there is a signed contract.

Thank you for your response! I'm feeling a bit better =)

During seller's market, owners were accepting offers, and by the time you get your buyer to the attorney's office to sign the contract, they call you saying: "Sorry, we have better one. Match it or there is no deal..."

There was an article in NY Times Sunday couple of years ago about one of the Chirches in Manhattan, doing same thing. And when buyer asked: "How come? This is chirch, you accepted my offer...", the answer was: "Sorry, it's just buisiness"

So, if you found something better - go for it. It's absolutely normal to look after your best interest.

Elena
(broker)

No signed contract fully executed by both parties? No deal. The seller should also still be showing as well until it's all signed, sealed, and delivered.

If the seller were interested in finalizing a deal, the seller would have that contract in your hand ASAP so you could begin due diligence, have an attorney review the contract, for you to sign it, and then get it to the seller to make it a binding contract by countersigning it. Until all that is done, you and the seller got nothing but a provisional meeting of the minds as to price--nothing else.

Without a contract, the seller could sell to someone else, and you could withdraw you bid and buy something else.

That being said, there's no reason not to be as considerate as possible. If you know you are withdrawing your bid, then do so before the seller has an attorney draw up a contract for nothing and before you do too much to tick off the selling broker who may be at a big house and spread the word to people who work with him/her in the neighborhood that you scuttled her deal. Basically, I'm saying be considerate. It can only help you down the road.

Ethically, do you want to be stuck someplace that you like less than where you really want to live?

Withdraw the bid.

I think it could be unethical depending on your concept of your "word" or how upfront you have been with them. If you told them you were continuing to look for an apt and gave them the option to look for other buyers, then you are fine. Alternatively, if you can honestly say that only signed contracts matter and you would understand and be fine with the fact they were covertly entertaining other offers, then you are also fine. Basically, don't hold them to a higher standard than you would yourself or vice versa. If it's any consolation, I would look for better places.

If it isn't a contract, it isn't agreed. Doesn't mean you have to be an assh*le or sneeky, or embarassed.

In my opinion, doesn't sound like you love the place, so why put yourself in a position to own something you'll be debating about for the next year and on?

Do I agree w/ vverain, except that "sneaky" has one less "e" thank he thinks?

If the sellers get an (unlikely) better offer, do you think that they'll take it?