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The ABCs of 'Back on Market' Properties"
Imagine scrolling through the MLS listings, and you stumble upon a category that piques your curiosity: "Back On Market" (BOM). What does this term mean, and why should you care? In this article, we'll unravel the mysteries of BOM properties and explore the exciting potential they offer for both buyers and sellers.
The BOM Breakdown
"Back On Market" (BOM) is a window of opportunity in the real estate market. It's like hitting the refresh button, giving you a second chance to find your dream property. Importantly, a property returning to the market as BOM doesn't necessarily indicate a flaw with the property itself. Instead, it's often a result of challenges related to the transaction, financing, or the circumstances of the buyer. Sellers and their agents can work together to minimize these risks by conducting thorough assessments and ensuring all parties remain aligned throughout the entire transaction process.
Top 5 Reasons for BOM Properties
Financing Hiccups: One common reason for a property going BOM is financing issues. Perhaps the initial buyer faced unexpected financial challenges or couldn't secure the necessary loan. This hiccup doesn't reflect the property's quality but rather a bump in the road for the buyer.
Inspection and Appraisal Contingencies: Sometimes, during the inspection or appraisal phase, unexpected concerns arise. These issues might not be deal-breakers, but they can lead to a property returning to the market as a BOM, offering a chance for a buyer who doesn't mind addressing these concerns.
Home Sale Contingency: In some cases, a buyer's ability to purchase a new property hinges on successfully selling their current home. If this sale falls through, the property they intended to buy can become a BOM, creating a new opportunity for you.
Title or Legal Issues: Legal matters can sometimes delay or derail a real estate transaction. When these issues are resolved, the property can return to the market as a BOM, allowing buyers who might have missed out the first time to step in.
Buyer's Remorse or Cold Feet: Occasionally, buyers may have a change of heart or second thoughts about a property. This can result in the property becoming a BOM, giving others a shot at securing it.
The Pros of BOM Properties
Potential Bargains: BOM properties may offer an opportunity to negotiate a better deal. Sellers may be motivated to move forward quickly, potentially leading to a more favorable price or terms.
Less Competition: With fewer buyers aware of the property's return to the market, you may face less competition, increasing your chances of securing the property.
Unique Insight: BOM properties often come with a history. You may have access to valuable information about the property's previous inspection reports, appraisals, and repairs that can inform your decision-making process. This can be an advantage when negotiating terms or requesting necessary improvements.
Seller's Awareness: Sellers of BOM properties are often more aware of the issues or challenges that led to the property returning to the market. This can lead to a more transparent and cooperative negotiation process, as both parties aim to avoid similar pitfalls.
The Cons of BOM Properties
Uncertainty: BOM properties can be accompanied by uncertainty, as you'll want to investigate the reasons for the property's return to the market.
Disclosures: Ensure that you receive all necessary disclosures from the seller regarding the property's history, including any issues that led to it becoming a BOM. Lack of transparency can introduce uncertainty into the transaction.
Property Condition: While it's not always the case, BOM properties might have been off the market for a period of time, during which maintenance or repair issues could have arisen. It's crucial to thoroughly inspect the property to ensure it's in the condition you expect.
BOM properties are like hidden gems in the real estate market. While they come with some potential drawbacks, they also offer unique opportunities for savvy buyers. Don't be deterred by the "Back On Market" label; instead, explore these listings with an open mind and a keen eye for value. Your dream home might be waiting for you in this intriguing category of real estate opportunities.
Amanda Allen, GCI, MRP - 0697466
903-603-0648
