RENT OWN SELL
Newyork
RENT OWN SELL
Newyork
House hunting can be a whirlwind of acronyms and terms! Have you come across “BOM Real Estate Property” in your search and wondered what it means? In the fast-paced world of real estate, knowing the lingo can be empowering. This blog post will break down everything you need to know about the BOM real estate term, from its meaning to the reasons a house might end up back on the market.
In real estate, BOM stands for “Back On Market”. It means that a property previously failed to sell is now available again for purchase. Why? Well, there can be many reasons. Possible causes include; the buyer may have run into financial problems or simply got cold feet and backed out, or perhaps something unexpected was uncovered during inspection.
So no matter what led up to it, one thing is clear – every BOM listing offers new hope to potential buyers. The seller will relist it on all of the major property websites and start having showings again. Keep in mind though, just because a house says BOM doesn’t mean anything negative about it. In fact, they often generate interest quickly because there was already prior interest in the property.
There are a couple of reasons why a house might go BOM in real estate. The most common situation is when the house had an offer that was accepted already but the deal fell through. This could happen for a few reasons:
Financial Problems: At times, buyers fail to get funds for buying the property even after being pre-qualified for mortgage loans. This may be attributed to changes in their income flow or unanticipated challenges that they encounter during loan processing.
Inspection Worries: A person may not have been familiar with any big issues in the house until they had it inspected. These problems could cost a lot of money to be fixed and so they might decide not to buy it after all.
Losing Interest: Buyers sometimes lose interest and fail to complete the purchase for personal reasons. For example, they might come across another property that appeals to them more than this one did.
Back on the market (BOM) homes present an enticing prospect to buyers, having attracted the attention of potential buyers before. However, there are some things to watch out for:
Know the Reason for BOM: It is important to understand why the home is being sold again. Ask your real estate agent to find out why the initial sale fell through. The issue may be a buyer financing problem or even problems within the house itself being exposed.
Inspection Results: Be sure to ask about any findings from inspections if they were related to why the last deal did not succeed. These should also shed light on how much these issues might cost you in repairs. Besides, consider conducting another more detailed inspection aimed at uncovering hidden problems.
Use this as an opportunity for Negotiation: Understanding that this property is BOM gives you room to bargain. If the seller wants out quickly due to overpricing initially on their part then he/she might take less than his/her asking price.
Keep an Eye on Time Frames: If the house was only BOM for a short period, it might still be a desirable property. However, a house that has been sitting on the market for a longer time after going BOM could indicate more serious issues.
Absolutely! A listing can end up back on the market (BOM) for reasons completely outside the seller’s control. Common scenarios include buyer financing falling through, unexpected job changes for the buyer, or even disapproval from a homeowner’s association for the buyer. In these cases, the property itself isn’t to blame, and it can be a great opportunity for you as a buyer.
A BOM can impact home prices in both positive and negative ways. Sellers might lower the price to attract new buyers, especially if the reason for the fall-through was related to the property. However, they might also try to recoup lost time by holding firm on the original price or even raising it slightly.
Ultimately, the effect on price depends on the reason for the BOM, market conditions, and the seller’s negotiation strategy.
There is no concrete data on the national frequency of BOM (Back On Market) occurrences, but they are known to happen regularly. According to real estate professionals, anywhere from 10% to 30% of all listings can experience a situation where the transaction falls apart and the home is relisted for sale.
Here are some of the best ways to prevent your house from going Back On Market (BOM):
Accurate Pricing: A house that has the wrong pricing will stay too long on the market thus not procuring significant offers. Therefore work closely with your agent in competitively pricing your house in accordance with the current market conditions and comparable properties.
Proper Disclosure: Lay everything on the table regarding the known defects of the property. This helps in building confidence among potential buyers as well as avoiding deals from collapsing due to unexpected issues arising during inspection.
Compelling Presentation: Put up a good show by staging your home for a positive impact during views. To attract buyers, get rid of clutter, do minor fixations, and highlight the home’s best features.
Flexible Showings: You should be ready to receive visitors at any time if you want to sell off quickly. Serious clients may be impulsive and want to see the house as soon as possible so make it available most of the time.
Experienced Realtor: For effective marketing choose a competent realtor who is well-versed in your area’s market trends and can therefore sell to the right people.
Not necessarily! BOM houses can be a good option, especially if the reason for going back on the market wasn’t due to the property itself. You might find a motivated seller willing to negotiate on price, and the house could have already undergone inspections, saving you time and money.
Related Article: What are Real Estate Comps
