OfflineIts been awhile since I've been on the site, but I finally got my private investor living in the same state with me and we are more than ready right now to pick up a property. Right now, I have my eye on one that almost looks too good to be true (which in my experience, normally is) but I have to ask anyway so I can prepare my questions when my real estate agent calls me back.
The property I am looking at is available for around $80K but has whats called "AWC - Seller Written Instructions" and then refers to what is called 'AWC-I' next to it. I have found very little information regarding this term, but what I have gathered is basically this means that the seller is taking secondary-offers while the bank is deciding what to do with the property (or something along those lines). The description continues and then says "Seller has never lived in the house. Buyer to verify all information they deem important. Must submit attached addendum with offer. Please waive SPDS and CLUE on page 7 of offer. *SOLD IN AS-IS CONDITION" I should also note that the first pic shows some kind of damage in the shingles on part of the roof. I dug a little deeper into this property via the assessors office and looked up the tax history. Right now, it seems that only half of the taxes due for 2008 have been paid on the property.
So I guess my question to you guys would be what should I be aware of & keep my eyes open for with properties with AWC listings. Quick responses are appreciated as this looks like a very desirable property if everything checks out.
-=JB=-
"What!? NO! We can't stop here! This is bat country!"
Active with Contingencies - this means that a contract has been accepted but there are some sort of contingencies attached that will need to be cleared. And there are three sub-categories for AWC:
•AWC-C is the most common, that the sale is contingent upon the buyer selling their own home.
•AWC-I is next. This means that the seller has provided written instructions to the listing agent to leave the home as Active in the MLS (more on this in a minute.)
•Least frequent - so much so that I had to look it up - is AWC-O, which means there’s an existing option to purchase the home.
One challenge with posting a home as Active with Contingencies is the days on market continue to accrue. This isn’t the case with a Pending listing. And in reality, there’s not a high likelihood of a home in AWC status being shown. So if DOM-conscious sellers have a contract, and it’s not contingent upon the sale of the buyers’ house, it could be to their detriment to post a home as AWC based on their own written instruction.
Also, the wording for Active with Contingencies - while a bit more specific than the old UCB status (Under Contract, accepting Backups) - remains poor.
There are almost always contingencies attached to a purchase contract for everything from the appraisal to securing the loan to the inspection period. Even homes listed as Pending likely have not had all these contingencies cleared because some don’t clear until the final days before the close of escrow.
I hope that helpted. Just be careful with this one and have YOUR escape clauses in there as well.
Anita
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"FAILURE IS NOT AN OPTION"