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Understanding the Basics of BOM
In the world of real estate, BOM stands for “Back on Market.” It refers to a property that was previously under contract but has returned to the market for various reasons. This could be due to financing issues, inspection problems, or simply a change of heart by the buyer. When a property is labeled as BOM, it means that it is once again available for sale and open to new offers.
Reasons for a Property Being Listed as BOM
There are several reasons why a property may end up back on the market. One common scenario is when a buyer’s financing falls through. The buyer may have initially been pre-approved for a mortgage, but during the underwriting process, the lender may have discovered issues that prevent them from providing the loan. In such cases, the property goes back on the market, and the seller has to find a new buyer.
Another reason for a property being listed as BOM is due to inspection problems. During the inspection period, the buyer may discover significant issues with the property that they are not willing to accept. This could include structural problems, plumbing or electrical issues, or even pest infestations. If the buyer and seller cannot come to an agreement on repairs or price adjustments, the property goes back on the market.
Additionally, a change of heart by the buyer can also lead to a property becoming BOM. Sometimes, buyers may have second thoughts about the property or decide to pursue other options. This could be due to personal reasons, changes in financial circumstances, or simply finding a better deal elsewhere. Whatever the reason, the property is relisted, and the seller has to attract new potential buyers.
Implications for Buyers and Sellers
For buyers, a BOM property can present an opportunity. These properties often come with a sense of urgency, as the seller may be more motivated to sell quickly. Buyers can take advantage of this by making competitive offers or negotiating better terms. However, it is essential to conduct thorough due diligence and understand the reasons why the property became BOM in the first place.
On the other hand, for sellers, having a property labeled as BOM can be frustrating. It may indicate to potential buyers that there are issues with the property or that the seller is difficult to work with. However, sellers can benefit from learning from the previous transaction and addressing any concerns that may have led to the property becoming BOM. This can help attract new buyers and increase the chances of a successful sale.
How to Navigate the BOM Market
If you are a buyer interested in a BOM property, it is crucial to work with a knowledgeable real estate agent who can guide you through the process. They can help you understand why the property became BOM and advise you on how to proceed. It is also essential to conduct thorough inspections and due diligence to ensure there are no significant issues with the property.
For sellers, it is essential to work with a real estate agent who can help you navigate the challenges of selling a property that has become BOM. They can assist you in identifying and addressing any issues that may have caused the property to return to the market. Additionally, they can help you market the property effectively to attract new potential buyers.
Conclusion
BOM, or Back on Market, is a term used in real estate to describe a property that was previously under contract but has returned to the market. This can happen due to financing issues, inspection problems, or a change of heart by the buyer. For buyers, BOM properties can present opportunities for competitive offers. For sellers, it is essential to learn from the previous transaction and address any concerns to increase the chances of a successful sale. By understanding the basics of BOM, both buyers and sellers can navigate the real estate market more effectively.