Home Buying in Isla del Sol>Question Details

JRL5616, Other/Just Looking in Saint Petersburg, FL

What does "active with contract" mean?

Asked by JRL5616, Saint Petersburg, FL Sat Mar 16, 2013

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This question was asked from this property: http://www.trulia.com/property/3111196193-6269-Palma-Del-Mar…

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Most of the time these properties are "short sales" -- meaning that the seller is in negotiations with the bank to take less for the home than what is owed on the mortgage. They are continued to be marketed by agents as buyers then to "walk" on these contracts often when the bank counters at a higher price. You can put in a backup offer on a property but you will be waiting a while as the first contract is in force until the bank declines the price offered or the buyer walk away.
1 vote Thank Flag Link Sat Aug 10, 2013
This means the property is under contract but still being marketed. The most likely reason for this on properties, are that the sales contract is subject to the approval of a third party for a short sale. This means the sales price is not enough to pay off the mortgage and the lender needs to approve taking less in exchange for releasing the lien.

I would be happy to discuss this more with you or answer any questions you may have about Palma Del Mar. It is a beautiful location.

I wish you the best of success.

Sean Barber
Charles Rutenberg Realty
727-481-5012 cell text
sean@myTBrealtor.com
1 vote Thank Flag Link Sat Mar 16, 2013
I'm agree with Terri, you see AWC quite often with short sales because of the negotiation process with the seller's lender. You have an agreed contract with the seller, but the seller doesn't make the ultimate decision, the seller's lender does. While you are waiting to hear if you're offer is accepted, the MLS status is more likely to be active with contract and accepting back up offers as well.

Active with contract, means just that.... there's a contract under review but it's not posted as pending usually because of the short sale process or because of another contingency in the contract in place.

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0 votes Thank Flag Link Tue Apr 22, 2014
In Florida AWC is a fairly normal status if any contingencies have not been met. If all contingencies, including financing contingencies have been met then the status changes to Pending. When. I work with buyers I always ask if they would like to review AWC properties. I explain the details and if the inventory is low it could benefit a buyer to look at these properties. Should they identify a property of interest it takes only a phone call to find out what contingency is still open on the contract and a listing agent will tell you if they are accepting offers at that time.
0 votes Thank Flag Link Mon Apr 21, 2014
With a status of active with contract, the simple explanation is the house in under contract but their is a contingincy such as inspection, mortgage or a house to sell. Agents should only use this is good faith when their is a kick out clause, When an agent or seller refuses to work with new buyers, they should have the status as pending or contongincy status.
0 votes Thank Flag Link Mon Apr 21, 2014
It means the home is under contract, but the Seller still wants interested buyers to take a look as the buyer is still under a diligence period and until it's passed and any contingencies removed could terminate their offer. Generally speaking none of this happens and the deal closes but this seller is trying to hedge against the possibility that it falls through fro some reason.
0 votes Thank Flag Link Mon Apr 21, 2014
Your specific question "active with contract" is the status that a property becomes once an effective and approved contract has been accepted on a property. The status will remain until all contingencies have been met. That would include inspection, appraisals, or financial commitments. Once these contingencies are listed the contract status will change to Pending.
0 votes Thank Flag Link Sun Apr 20, 2014
In today's market you will see properties that may not appraise. Unfortunately the appraisal process in our state has a few quirks. I would have recommended an independent appraisal cost to be shared equally between buyers and sellers. Seller to agree with purchase at the full price of the independent appraisal. The seller's only advantage of not doing this would be if they are focusing only on cash buyers that will not ask for an appraiser. otherwise the seller will have the same problem with the next contract. You can always present a fresh contract after having your realtor discuss this possibility with the sellers agent. Also, if the appraisal is within a few thousand dollars then it is most likely not a major issue. Appraisals are not exact and in Florida an appraiser may have come from Orlando to appraise a property in St Petersburg. This would eliminate any familiarity with the location and could lower an appraisal. Have your realtor do her job and check out all possibilities if you are still interested in this property. Remember, this is a business transaction and not a personal or emotional one. Both parties want to make this transaction work. The agents should be working on your best interest.
0 votes Thank Flag Link Sun Apr 20, 2014
We were ready to work with the Seller however the Seller's Agent REFUSED to do anything...she stated it was crazy, get your check back, so dealing in bad faith.... The property has been on the market more than 6 months.... My realtor conducted a CMA before we bid and she was around $235K... Seller wouldnt accept an offer less than $257K so we offered it with the undestanding that the appraisal contingenc was strong and the expectation was that the Sellers agent would educate the Foreign seller as to how that works and she apparently never did...She was extremely rude to our agent as well... We have filed a complaint with the BROKER however this RE Company has La Isla sewn up and they are trying to drive up prces....
Flag Mon Apr 21, 2014
It means that they are looking for another offer... We were the prospective buyers and this unit DID NOT APPRAISE... we had an appraisal contingency on our contract and the appraisal came in at $240,000...Neither the seller NOR her agent ever addressed this issue, no independent appraisal, no negotiation... They cancelled the deal after we spent $425 on the appraisal and $225 on the inspection... They are dealing in Bad Faith.... We contacted the broker and simply no response.... Compass RE appears to be trying to pump up the prices since they control the market on La Isla but we were victims to their game plan.....
0 votes Thank Flag Link Mon Apr 14, 2014
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