Active with Contract (AWC) is a great tool for both seller and buyer, long overdue. If you put a back-up offer in on a property you may get that house. If the house was pending you may never know the house was ever for sale. As a buyer you want the opportunity to view all properties of your choice and possibly take a chance with a backup offer on any property you like, AWC gives you that right.
In the past few years many of my closings were from back-up offers, a couple of them were in 3rd place and become the one to close. Itâ€™s not a waste of time to put in a back-up offer, itâ€™s not a waste of time to let you the buyer decide if you want to put a backup offer in on a property.
My friend, writing offers is in our job description as real-estate agents, we proudly provide this level of service to you the buyer. If any real-estate agent doesnâ€™t want to provide this service to you, they should be kind enough to refer you to another agent. One who will provide you with the level of service you deserve as a buyer.
An explanation / example of why AWC: today most buyer(s) contracts or offers coming to the seller(s) are wrote on the popular AS-IS contract, which clearly states the buyer(s) have many rights and outs to cancel the contract whereas the seller does not.
Sometimes incorrect agents or investors will write multiple offers just to tie up multiple properties keeping them off the market hoping one will stick. If the listing agent places the properties as pending, the properties will cease to exist for sale, and be out of sight from the mls and other websites. If you put them as AWC they will remain on the market until all contingences stated are removed. NOW! This allows you the buyer to say I like that house thatâ€™s AWC so letâ€™s put a backup offer in. Especially with short sales where the bank may counter offer with a higher amount back and the first buyer walks. Or the buyer does not want to wait for an answer and walks, you now move into 1st position. Or the buyer doesnâ€™t like the inspection results for any reason and cancels the existing contract or the loan fails, YOU the BACKUP OFFER wins!
I hope this helps you understand AWC just a little better.
I've never seen 'delist' but I have seen "contingent". It's all the same; the selling agent wants to entice buyers as either a prospecting tool or to get backups just in case the first contract falls apart.
I hope our board bans AWC soon, I had heard it was going to. If a buyer and seller go into contract it should go pending until it either closes or cancels. If a buyer's agent looks at pending listing in an area that they have a customer looking, a few phone calls or emails will let them know whether a back up may be in order.
Section 14: Active with Contract.
Definition: The status of Active with Contract indicates that there is a contract with contingencies and the owner will consider back-up offers. The listing broker must obtain written authorization from the owner to place a listing in the Active with Contract Status. Once all contingencies have been met, the listing status must be changed to â€œPendingâ€ within two calendar days excluding weekends and Federally recognized holidays.
Listings may be placed in â€œActive with Contractâ€ status if one or more of the contingencies below are met: Kick-out Clause, 1st Right of Refusal, Financing, Back-ups requested, Pending 3rd Party Approval,
Inspections, REO Waiting for Signatures, Other Contract Contingencies
The words â€œUnder contract taking backupsâ€ must be added as the first words in the Public Remarks. An Active with Contract listing will be treated as an â€œActiveâ€ listing for export purposes only (example: Realtor.com and IDX websites) except if REO Waiting Signatures is selected as a contingency.
Antonio, I believe the definition is very clear to the public and to others when one reads the words
â€œUnder contract taking backupsâ€. If you come across (agent error) let them know by email. You may also go to ORRAâ€™S site Broker to Broker. The last thing, my guess is you donâ€™t like Jumbo Shrimp?