Buyers want to know. AWC answered.

By Terry Forsberg PLLC, CRS, GRI,CDPE, CIAS, Associate Broker

February 19, 2011

Category: Uncategorized

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Many people searching for homes in Arizona go directly to the local multiple listing system (ARMLS) to see all of the homes currently on the market.
While searching for homes, they will come across many homes with a listing status of AWC and wonder what that stands for.
What does AWC stand for? AWC stands for “Active With Contingencies.” This home listing status is used in lieu of placing the home in the “Pending Sale” status as there are hurdles that need to be cleared before the sale can move forward.
What it means to a potential buyer is that the home is on the market and it being marketed to the public as a home for sale, but that there is a contingency in place that needs to be cleared before another buyer can move forward with the purchase.
When you see an AWC status, the person or entity selling the home is looking for other backup offers in case the existing offer/contract with the contingency falls through.
There are three different categories of AWC with one of them AWC-I or AWC- Seller Written Instructions being a very common one in today’s market.
• AWC-C or AWC -Contingent Offers: This AWC status indicates that there are is another offer or contract on the home, but there are “contingencies” involved. The contingency on the contract or offer would need to be cleared before the sale can be completed. An example would be if the seller had accepted an offer where the buyer has another home to sell prior to being able to close on the new home purchase.
• AWC-I or AWC – Seller Written Instructions: This status has exploded in popularity in the last few years due to the large number of short sales in the Scottsdale and Phoenix real estate markets. The “I” stands for written “instructions” to keep the listing in an active, although with contingency, status. It can be used in different scenarios, but I would say the majority of the time when you see an AWC status on a Scottsdale home listing, it is referring to a short sale. So, when you see this in the case of a short sale, it means an offer has been accepted by the seller, but now the seller’s lien holder(s) have to approve the offer. Once lienholder(s) has/have given their approval and the deal can move forward, these listings can then move into Pending status.
• AWC-O or AWC – Existing Option to Purchase: This one is pretty rare to see. The “O” means that there is an existing “option” to purchase the home. Basically, the seller and option holder agreed to sell the home to the option holder at some point in the future. However, the option holder is not obligated to buy the home, so if they walk away from the purchase, a new buyer can step in.
Buyer can always find another property in this market but have to remember to monitor back up offers. Make sure you have an exit plan and written parameters signed by seller to escape the backup if you find another home.

Timing is everything, happy home hunting. Remember it’s one of the best times in years to buy your Arizona home.

Best Regards,
Terry

Terry S. Forsberg, Associate Broker, CRS, GRI
Certified Distressed Property Expert,
RE/MAX Fine Properties
Arizona CRS Chapter Secretary
602-410-9547 Mobile Fax 480-355-9585

OH, BY THE WAY, I’m never too busy for your referrals!

Terry@TerryForsberg.com http://www.TerryForsberg.com

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