What does BOM (back on market) mean?

Question: Hi Kari, I've noticed several listings labeled as "back on market" while browsing homes. Could you clarify what this status means and why it usually happens? Answer: That is an excellent question. In real estate, a sale isn't final until it closes. Between the accepted offer and the closing date, there are several buyer contingencies that must be completed. If the deal falls apart during this time, a home is labeled BOM, meaning the previous contract fell apart during this process. The home returns to the market with status of active for other buyers to view and make offers on. While it is natural for buyers to assume something must be wrong with the home, BOM status frequently happens through no fault of the home or the sellers. Accepting an offer is just the first step. A sale must still clear several hurdles, known as buyer's contingencies, before it is a closed deal. Although buyers often fear why homes come back on the market, this is because in the buyer's minds, they think there must have been a problem with the home, but this is not always the case. Let us look at some common reasons a home sale fails: · Good, old-fashioned buyer's remorse. · Multiple offers and the winning buyers felt they paid too much. · Buyer's loan was denied. · The lender increased their fees. · Loan interest rate was increased. · Property appraisal came in too low. · Simultaneously, the buyers are making offers on several homes. · Contingency of the buyer's current home did not sell. · The HOA rules were not acceptable. · Mello-Roos was disclosed after the pending sale. · Lack of disclosures by the sellers or not liking what was disclosed. · Issues with the home inspection. · Mold discovered. · Termites discovered. · Buyers finding a better home. · Disagreements over contract terms or missed contingency deadlines. · Buyers experience a job loss, divorce or other life events. · Inexperienced buyers wanting everything new for them. · Home is not insurable. · Death on home disclosed. · Flood zone and flood insurance required. · Fire insurance was too much money. · There is a sexual offender nearby. · Buyers fail to negotiate with seller to make agreed-to repairs. · Issue with drainage or water intrusion. · The neighborhood showed poorly on the weekend. · Roof is in worse condition than stated by sellers. · Buyers find out the property is too small to add a pool. · Buyers discover the ceilings have asbestos. · Title issues, liens, easements or boundary disputes that stop owner title transfership. · Sellers are unwilling or unable to fix issues requested by buyers. · Concerns about the economy. Now we can see how home sales fail for several reasons. In hindsight, some issues may be avoidable. Because buying and selling a home can be a complicated process, taking precautions is key. As a buyer, having a firm pre-approval from your mortgage lender in hand is in your best interest. As for sellers, taking care of known maintenance issues and problems on the home ahead of time can prevent a sale from failing when the home inspections take place. A little extra planning and upfront work can go a long way toward a successful closing for both buyers and sellers. Kari McCoy, CRS has been a Realtor for 30-plus years and owns the Kari McCoy Group, Residential Real Estate, at Windermere Real Estate. Contact her at 916-933-5274 or email her at sold@karimccoygroup.com.