“BOM” stands for Back on Market. The term BOM in real estate means a property that was once under contract and temporarily off the market is now available again. It signifies a significant change in status and can present both opportunities and challenges for buyers and sellers alike.
Why Properties Go BOM: Exploring the Reasons
When a property goes back on the market, there are various reasons behind this shift in status. Let’s delve into some common scenarios that lead to a property being labeled as BOM:
Financing Difficulties
One common reason for a property going back on the market is financing issues faced by potential buyers. Securing a mortgage or loan can be a complex process, and sometimes deals fall through due to financial constraints or difficulties meeting lending requirements.
Failed Inspections or Appraisals
Another factor that can cause a property to go BOM is failed inspections or appraisals. During the due diligence period, inspections are conducted to assess the condition of the property. If significant issues arise during these inspections or if an appraisal comes back lower than expected, buyers may choose to terminate the contract.
Buyer’s Remorse
Sometimes, buyers experience second thoughts after entering into a purchase agreement. Whether it’s due to personal circumstances, cold feet, or finding another property they prefer, buyer’s remorse can lead to properties returning to the market unexpectedly.
Contractual Disputes
In certain cases, contractual disputes between buyers and sellers can result in a BOM in real estate (property going back on the market). Disagreements over repairs, contingencies, or other terms outlined in the contract may lead to the termination of the agreement.
Unforeseen Circumstances
Life is unpredictable, and unforeseen circumstances such as job relocations, family emergencies, or changes in financial situations can all contribute to a property being put back on the market.
How BOM Affects Real Estate Transactions
For Buyers
When a property goes BOM, it presents both opportunities and challenges for buyers. On the positive side, it may open doors for price negotiation and addressing issues that led to the property returning to the market. However, it’s crucial to approach such situations with care and diligence.
Buyers can employ specific strategies when considering a property that has gone BOM:
- Reevaluate the Property: Use the BOM status as an opportunity to assess the property’s value and condition meticulously.
- Negotiate Thoughtfully: Be prepared to negotiate with the seller, considering any issues that contributed to the property’s return to the market.
- Secure Financing: Ensure that your financing is in order, reducing the risk of the deal falling through.
For Sellers
For sellers, a property going BOM can be a setback, as it extends the time the property spends on the market. This prolonged exposure may raise questions about the property’s desirability. Nevertheless, it also offers a fresh opportunity to find a new buyer and proceed with the sale.
Sellers dealing with a property that has gone BOM can consider the following strategies:
- Maintain Transparency: Be transparent about the property’s status and the reasons behind it going BOM.
- Address Issues Promptly: If the property went BOM due to inspection or appraisal issues, consider addressing them promptly to enhance the property’s appeal.
- Collaborate with Your Agent: Work closely with your real estate agent to find a new buyer efficiently.
What Should I Do To Prevent My Home From Going Back On the Market?
Stage Your Home to Perfection
First impressions matter when selling a home. To attract potential buyers and keep their interest high, staging becomes essential. Staging involves arranging furniture and decor in a way that highlights your home’s best features while creating an inviting atmosphere. Here are some key tips for staging your home effectively:
Declutter and Depersonalize
Clear out any excessive clutter and personal items throughout your house. This allows potential buyers to envision themselves living in the space and prevents distractions from the home’s unique features.
Showcase Every Room’s Purpose
Ensure that each room has a clear purpose and is staged accordingly. Whether it’s a cozy reading nook, a functional home office, or an inviting guest bedroom, help buyers see the full potential of every space, you can learn more about this topic here.
Enhance Curb Appeal
Don’t neglect the exterior of your home. Boost its curb appeal by maintaining a well-kept lawn, adding colorful plants or flowers, and ensuring the front entrance looks welcoming. First impressions are lasting impressions!
Address Inspection Issues Promptly
Inspections are a crucial part of the home-buying process. It’s not uncommon for inspections to uncover issues that need attention. The key here is to address any inspection issues promptly and professionally. Doing so can prevent your sale from falling through due to concerns raised during this stage. Consider these steps:
Hire Qualified Professionals
Work with reputable contractors or specialists who can assess and fix any problems found during inspections. This includes issues with plumbing, electrical systems, roofing, foundation, or any other potential red flags.
Obtain Multiple Quotes
If there are significant repairs required, consider obtaining multiple quotes to ensure you’re getting fair pricing while still addressing all necessary concerns.
Keep Open Communication with Buyers
Maintaining open lines of communication with your buyers throughout the inspection process fosters trust and transparency. Discussing any issues discovered and how you plan to resolve them can alleviate concerns and keep the transaction on track.
Price Your Home Competitively
Pricing your home competitively is crucial for attracting serious buyers and preventing it from going back on the market. Here are some factors to consider when determining your listing price:
Research Comparable Properties
Conduct thorough research on similar properties in your area that have recently sold or are currently listed. Compare their features, condition, location, and amenities to get a realistic understanding of your home’s market value.
Consult with a Real Estate Professional
Enlisting the help of a knowledgeable real estate agent can provide valuable insights and guidance on pricing your home. They have access to market data and expertise in your local area, helping you set a competitive price.
Be Open to Negotiation
While pricing competitively is essential, it’s also important to be open to negotiation. Buyers may submit offers below or above your asking price, and being flexible can help keep the sale moving forward.
Maintain Open Lines of Communication
Clear and consistent communication between all parties involved is vital in preventing your home from going back on the market. Here are some tips for maintaining open lines of communication:
Stay in Touch with Your Real Estate Agent
Regularly communicate with your real estate agent to discuss any updates, concerns, or questions that arise during the selling process. Their expertise can guide you through potential challenges and ensure a smooth transaction you can follow those tips for choosing a real estate agent.
Respond Promptly
Promptly respond to inquiries from potential buyers, agents, or lenders. Delayed responses can create uncertainties or give the impression that you’re not fully committed to the sale.
Be Transparent and Honest
Honesty is key when communicating with buyers and their representatives. Disclose any known issues about the property upfront and answer questions truthfully. Building trust early on helps maintain buyer confidence throughout the process.
Frequently Asked Questions (FAQs)
Explore some common questions about BOM in real estate:
Can a property go BOM more than once? Yes, a property can return to the market as BOM multiple times if different contracts fall through for various reasons.
Are there advantages to buying a property that has gone BOM? Buying a property that has gone BOM can offer advantages, including potential price negotiation and the opportunity to address issues.
How can I prevent my property from going BOM as a seller? To prevent your property from going BOM, ensure transparency, address issues promptly, and work closely with your real estate agent.
Is it common for properties to go BOM? Yes, properties can go BOM, especially in competitive real estate markets, due to various factors.
Can I make an offer on a property that has gone BOM? Yes, you can make an offer on a property that has gone BOM, but be prepared for specific terms and conditions set by the seller.
How long does it take for a property to go BOM? The time it takes for a property to go BOM varies depending on market conditions and the reasons for its return to the market.
Conclusion
In the intricate world of real estate, comprehending terms like “BOM” (Back On Market) is essential. Whether you’re a buyer or a seller, understanding the implications of a property going BOM empowers you to make informed decisions in a dynamic market. The next time you encounter a property listed as BOM, you’ll be well-prepared to grasp its significance and navigate the real estate landscape with confidence.