We Don’t Like BOMs, and Neither Should You!
BOM (Back On Market) is neither good for buyer, seller, or honestly, the agent. What you can do to prevent the dreaded BOM effect.
We tend to sometimes think that a home purchase is a done deal. Once the contract is signed, all we have to do is wait for escrow to close, and keys exchange hands. If only that were really the case! Occasionally, things happen during the transaction that may cause escrow closure to be delayed, or be canceled altogether.
Now there are times when life happens. Some issue arises during escrow that changes the game (and not in a good way), causing the deal to fall through. However, in many cases, escrow can close, and homes can go back on market (BOM, as we call them in the real estate industry). BOMs disappoint everyone, but mostly the seller. Once their home BOMs, they basically have to start all over again. Buyers also lose out, as they usually go in with high hopes that they are finally acquiring their dream home.
Causes of the BOM
For the most part, a BOM will occur when one or more contingencies can’t be met by either the buyer or seller. This can occur over counter offers, home inspection requests, appraisal issues, title issues, and of course, the most popular reason for a home going back on the market…failure for a buyer to receive final approval on their home loan.
Ways to Avoid the BOM
BOMs can be avoided from the very beginning by sellers defining their wants and needs PRIOR to listing their home. This includes having a solid understanding of the Fair Market Value of your property, and knowing that the price your home might sell for realistically will help you reach your real estate goals. This puts you in the position to accept offers that will come within reaching those realistic goals, and help put you on the path toward closing escrow without worrying about it falling through.
Defining YOUR wants and needs when it comes to purchasing a home is very important as well. Remember, you’re not haggling for a car on a lot. You’re making a long term commitment and investment for your future. The more defined your goals are before you begin to preview properties, the less stressful the process will be overall.
Buyers should also pay very close attention to their finances, even if you’ve received loan pre-approval prior to submitting your purchase offer. Remember, a pre-approval is not in stone, and your loan application and financial information will be looked at closely by underwriters before FINAL approval is given and your loan is funded. Listen closely to your real estate professional and your lender, and make sure you follow their guidelines to make sure you don’t inadvertently do something that will cause your loan not to receive final approval.
Finally, hire experienced real estate professionals.
The Elgin and Pilar Walker Team have nearly 30 years experience handling pretty much anything you can imagine in the real estate industry. We’ve seen (almost) everything, and have the answers and techniques to minimize the dreaded BOM effect. Contact us for a no obligation needs analysis, and find out how we can help you reach all of your real estate goals.
Elgin & Pilar Walker
Keller Williams VIP Properties
25124 Springfield Court Suite 100
Valencia CA 91355
Office: (661) 290-3781
Mobile: (661) 347-6248