A Home Back on the Market Isn’t Necessarily a Bad Sign

You find a house you really like online and get ready to make an offer, only to watch it go under contract before you can. Soon after, it shows up back on the market. One of my buyers asked me about that exact situation recently, and it unsettles buyers and sellers alike.

In real estate shorthand, the status is called BOM, short for back on market. I’ll admit it’s a little funny, but since it’s Halloween season, I’ve taken to calling it “back from the dead.”

Back on market means a deal fell through. At some point, the seller accepted an offer, and the sale never got finalized. Something interrupted it, and the cause could have been a problem with the house or the buyer.

From the outside, you won’t know exactly which. Coming back on the market doesn’t necessarily mean the home has structural problems; sometimes the buyer is the issue.

Financing can fall apart before closing. Sometimes the buyer’s financing simply falls through. Job changes can cause this, and some buyers even lose a job while they’re in the process of buying a home.

New purchases can undo a pre-approval. Pay attention here, buyers, because one of the worst things you can do while you’re under contract is buy something else. Buying a car or furniture for the new home can affect your credit, and the bank will always check your credit history.

If the lender finds something on your report that wasn’t there when you submitted your pre-approval application, the loan could fail.

Major inspection issues can end deals. Structural inspections are another reason homes come back. When an inspection finds something major, and the buyer and seller can’t agree on a price to fix it, the contract can fall apart.

First-time home buyers in particular can get very nervous once the inspection report arrives. Some decide the house no longer makes sense for them, and the contract usually includes a cancellation provision that lets them walk away.

Sellers should handle small issues early. For home sellers, this is a good reason to check your home and make sure the small things are out of the way.

A returning home deserves a second look. Back on the market doesn’t mean it’s bad for the house. If a home you were interested in comes back, I’d go see it and bring a real estate professional with me.

Your agent can help you understand why the home came back. Some of these houses really do come back from the dead, and as the new year approaches, I hope to keep helping buyers and sellers make their moves.

If a house you’ve been watching just came back on the market, I’d be glad to look into it with you. Call or text me at 607-351-6933, email me at vickischamel@kw.com, or visit fingerlakesrealestatereports.com. I’m happy to help you sort out whether it’s the right one.