If you’ve been keeping tabs on the Scottsdale real estate market over the past few years, or any real estate market for that matter, then you’ve probably seen the term “UCB” quite a bit. What is UCB and how is it affecting the market?
UCB means that a property is under contract, but accepting backup offers. This happens when the seller of the property has accepted an offer, but also requested (in writing) that the property continue to be marketed in the effort to obtain backup offers.
A backup offer would be considered if the buyer with the accepted offer can’t or chooses not to follow through with the purchase. This can result from a number of things, such as unexpected findings in an inspection or failure to secure a loan.
The UCB term evolved from AWC, Active with Contingencies, and has been used since December 2012. AWC and UCB were used mostly for short sales when they were in abundance after the real estate bubble burst in 2008.
Among the homes currently under contract in the Valley of the Sun, about 34% are listed as UCB and 66% are listed as pending. In 2014, the UCB was at 28%, and 25% in 2013. When the listing term started getting popular in 2012, only 13% of listings under contract were marked with AWC/UCB status.
Part of the problem with the UCB status is that it is not used the same way across the Scottsdale real estate market, let alone across the state. In 2012, UCB was most popular in higher priced neighborhoods, a trend that has continued. In fact, the top areas to use UCB in both 2012 and 2015 are Paradise Valley, Cave Creek, Scottsdale and Fountain Hills. Paradise Valley’s percentage of UCB listings in 2015 is almost 50%.
Another issue with the UCB status is that it can throw off market analysis. A UCB listing is actually active and counts towards the supply side of things, but really about half of the listings with UCB status should be pending and count towards the demand.
Aside from counting properties properly, knowing if a property is UCB can make a big difference in the home buying process. You’ll want to know if a property is UCB before you consider making an offer. You’ll also want to know if the seller that accepts your offer, then pushes the property into UCB status, has backup offers waiting in the wings. Knowing that your pending Scottsdale golf home already has offers lined up could affect what sort of repair and financial requests you make during the escrow period.
If you are browsing golf homes for sale in Scottsdale on your own, it can actually be pretty difficult to tell if a property is UCB. Often times, real estate sites will keep properties listed as active when they are UCB status, or even if they are pending.
When you work with the Scottsdale real estate experts at The Matheson Team, you’ll be able to peruse properties and clearly see what is active, UCB and pending. Then, if you do choose to make a backup offer on a UCB property, we’ll guide you through the process.
Realtor | Founder
The Matheson Team – RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255
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