Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.
The world of real estate is tumultuous, even when everything seems like it should go well. Professionals invent terms to help people get the general gist of a property’s situation. What is the “BOM” meaning real estate? In New York City, it’s not unusual to hear about a property going “BOM.” But what does BOM in real estate mean when you’re discussing ? BOM, or “Back On Market,” is an acronym used by real estate agents to describe a property that is back on the market after an initial prior offer fell through. This can be due to a lack of funding, a sudden issue with the buyer, or simply a change of mind.
If you recently heard of a BOM real estate property, you might wonder what it means for your chances. Believe it or not, this is a pretty easy-to-read situation.
If you’re the person selling the property, it’s a major letdown. A BOM property is a home where the seller accepted an offer and signed a contract with a buyer. The sale was supposed to go through, and unfortunately, the deal did not go through.
BOM stands for “back on the market” in real estate and is a common abbreviation used by real estate agents. As the name suggests, a listing back on the market means it is available after a prior offer or contract fell through.
Because the sale didn’t pull through, the offer had to be rejected by default. This led the house to go back for sale. If a property is back on the market, there is no kick-out clause. This, in turn, means that the owner is entertaining new offers. There are 2 causes.
If your home is back on the market because an accepted offer fell through, there’s no need to change your listing’s status. Many MLS systems only have three primary listing statuses: Active, in contract, and sold. If, for some reason, your MLS does have a pending, offer in, or accepted offer listing status, then make sure your listing agent changes that ba.” to “active”.
If your deal was in contract and the buyer still fell through, you need to ask your listing agent to change the listing status from “in-contract” to “active.” This will typically trigger a notification on many people’s automatic search alerts.
In either of these two scenarios, it can also be helpful if your listing agent added to the beginning of the listing description, perhaps in all capital letters, “back on the market,” so that people know why it still hasn’t sold yet.
A seller typically puts a house back on the market because a previous deal with a buyer fell through. Also, the seller still wants to sell and is willing to look for another buyer.
Several common reasons explain why a home might go back on the market. These issues below are the most commonly-cited reasons why you might see a house go BOM. The listing might have had an accepted offer or even a signed contract; however, the buyer backed out for some reason.
It takes a lot to cause a house to go back on the market after accepting an offer and signing a contract, and at the very least, it takes some eyebrow-raising circumstances. That’s why most seller documents with a BOM tend to have a note if the BOM was through no fault of their own.
Yes, just because a listing is back on the market does not mean there’s something wrong with the property. Most likely, the property is back on the market because the buyer decided to back out, perhaps because they got cold feet or they realized that they were not financially qualified (either generally speaking, or they didn’t meet a co-op’s financial requirements).
Sometimes, a buyer will back out of a contract deal simply because the co-op board rejected them. Or perhaps the buyer couldn’t get a loan or couldn’t close with a loan because the buyer lost their job at the last minute. Things like this can happen through no fault of the seller.
Many listing agents will be very upfront and honest about what happened, for example, if the co-op board rejected the buyer.
One of the most significant factors that can hit a seller who wants to get a reasonable price on the market is the time on the market. When a house goes BOM, the time on the market does not go back to zero, and it’s as if it’s been on the market since the beginning.
For example, if a house took 42 days to get an offer accepted, it’d be taken off the market. If the offer falls through and the place goes BOM, the next day, it’ll show up as 43 days on the market, and it does not go back to 0, much to the seller’s chagrin.
Going back on the market after you were almost going to sell is a devastating blow to your potential sale price. This is primarily because of the optics of the sale. Most people feel they can bargain more when a home has stayed on the market for a while.
A place that has spent a while on the market isn’t getting much play as far as one would hope. People usually expect to see a decrease in price after several weeks on the market. Moreover, if they don’t see a reduction, they’ll typically be encouraged to ask for one.
This can make it hard for sellers to get the price they want.
It’s hard to find a statistic for this that is specific to New York City, but houses have sales fall through all the time. Around 20 to 30 percent of all homes for sale will return on the market at least once before they sell.
So, if this happens to you, take heart. It’s not just you!
Not all home sales are going to be able to happen, but that doesn’t mean you can’t work to prevent it. The best thing you can do is be proactive about reducing the reasons for a home-going BOM:
If your home recently ended up BOM, you might be worried about what it means for your bottom line. Honestly, it can tell you will have a more challenging time selling your home.
With the right real estate agent, tho will be able to sell it soon enough. Happy selling!