Active w/ Contingency in AZ- should you make an offer?

April 29, 2008

often you will find homes listed on the local (ARMLS) Multiple Listing Services (MLS) with the term “AWC-C” or “AWC-I” or “AWC-O” …. what do these Contingency terms mean?

I should point out I am referring to Arizona Real Estate Contracts that would be in use for ARMLS which includes the towns of Phoenix, Scottsdale, Tempe, Fountain Hills, Mesa, Peoria and Glendale.

contract contingency in phoenix
AWC-C - this is a home for sale, under contract, however, the purchase is contingent upon the sale of the buyer’s property. In this market, I generally advise my clients from taking these type of offers. However, in some cases , this can make sense.

AWC-O means that the home is under contract per a buyer’s ‘option’ to perform. The buyer, has a certain time frame that they may elect to exercise the option to purchase at a set price. Make sure you ask the listing broker when this option expires so you know if and/or when to make your offer.

AWC-I - this contingency provides the seller the ability to continue to market the property for back-up offers, possibly due to doubts of the buyer’s ability to obtain financing.

The AWC-I is very common these days , as REO/ bank owned properties or ’short-sales’ will still entertain offers while the bank is making a decision.

Be careful to look for these contingencies.

If you are a buyer, make sure your Realtor asks the listing broker if the home is Active with any contingencies so you know what is the best way for you to proceed with your offers.

If you are a seller, don’t hesitate to use these contingencies, to protect yourself from questionable buyers and keep your home marketed actively for back-up offers.

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Copyright © 2008 By James Wexler, All Rights Reserved. *Active w/ Contingency in AZ - should you make an offer*

Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs.

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Written by James Wexler · Filed Under Articles, Buyers, Sellers 

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