Q: I keep seeing some listings online that say “AWC” or Active with Contract. What does this mean? Is it available or not?
A: Recently in our Multiple Listing Service there was a pretty major change with the addition of the “Active with Contract” status. Here’s what it means to you.
When you are searching for a home either via an MLS feed that your Realtor has set up for you, or on a website like Realtor.com – you may notice some homes say “Active” while others say “Active with Contract” or “Pending”. Here’s the difference:
Active (ACT) – Home is actively available on the market and does not currently have a contract on it. This doesn’t mean the Seller hasn’t received any offers yet – they may have – and its up to your Realtor to ask the listing agent. It does however mean the Seller hasn’t yet accepted any offers presented. Hurry and go see a listing that is active before it goes AWC or PNC!
Active with Contract (AWC) – This status is often seen on short sales, but occasionally you’ll see it on non-distressed properties as well. The reason “AWC” – or Active with Contract – was created was to allow Realtors to continue marketing homes that were under contract already but have contingencies. Contingencies are things like “bank must approve the sale” or “financing” or “inspections” – things which must be completed or overcome in order for the sale to close.
So why does the Realtor want to continue marketing an AWC listing? Two reasons. #1 – sometimes short sale contracts fall through either because the bank counters the offer presented at a higher number, causing the Realtor to have to start all over marketing for a new buyer. #2 – because the Realtor wants to find buyers even though the house is under contract and sell them other Active homes.
Many times buyers ask me is it worth looking at AWC listings? The answer is maybe, but keep in mind if the current contract should fall through, the listing will go back to Active, and it will pop back up in your email notifications, and you can look at it then. If you really are in love with an AWC home you’ve seen online, your Realtor can always call the listing agent and inquire as to how strong the listing agent feels the current contract is. If its pretty strong, it may be better not to get your hopes up and move on.
Pending (PNC) – This means the home is under contract and they are not currently seeking to continue marketing the home. Most contingencies will be removed once a listing goes “Pending”. Still – if you are in love with a pending house – it may be worthwhile to have your Realtor call the listing agent to see what the status is.
Hello, I came across your site by accident and how wonderful! I have an unusual situation. My mom purchased a property approximately 3 years ago. During the walk-thru none of the agreed items were fixed. My mom’s BA drafted a contract in her own writing stating she would take $5,000 of my mom’s money and put into escrow with a date the items had to be completed by. The money was not to be given to the developer until the agreed items were fixed by the agreed date or my mom was to receive her money back so she could have them fixed. Both parties signed and the work was never completed and my mom never received her money. Since then the developer has filed bankruptcy and took all the condo owners condo fees with it (new condo association so developer held all monies). Although we sent a certified letter requesting the funds she has never received her money back. Of course we considered an attorney but it will cost nearly $5,000 for retainer etc. so she has not pursued. From a realtors point of view, is there anything you can suggest? Have you ever heard of this happening before with someone else? Any advice is appreciate. Thank you.
It depends on who is holding the escrow. It should be with a real estate firm or title company or attorney. You could make an escrow demand with whomever is holding it.