If you've ever come across the term "BOM" in real estate listings and wondered what it means, you're not alone. The world of real estate is filled with jargon and abbreviations that can confuse even the most seasoned investors. But fear not! In this guide, we'll demystify the concept of BOM and explain everything you need to know.
What Does BOM Stand For?
BOM stands for "Back On Market." This term is used to indicate that a property, which was previously under contract or in the process of being sold, is now back on the market for sale. Essentially, it means that for some reason, the sale did not go through, and the property is once again available for potential buyers.
Types of BOM in Real Estate
There are several types of BOM situations in real estate, each with its own set of circumstances. The first type is when a home is relisted after a failed sale. This can happen due to various reasons, such as the buyer's inability to secure financing or issues discovered during the home inspection. In such cases, sellers often make repairs or price adjustments before relisting the property.
The second type of BOM occurs when a home is taken off the market for seasonal reasons. For instance, if a homeowner decides to hold off selling during the winter months and relists the property in the spring, it would be considered a BOM.
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How do Realtors list the time a BOM home has been on the market?
When a home is listed as BOM in the MLS (Multiple Listing Service), the listing broker must specify how long the property was off the market. If the property was off the market for less than seven days, the length of time can be left blank. If the property is relisted within six months, only the cumulative on and off-market time needs to be disclosed.
Properties are often taken off the market for repairs, financing issues, or problems with inspections. However, a BOM designation does not necessarily mean there is something wrong with the property. Many buyers still consider BOM homes when searching for their perfect house.
Why Would a House Go BOM in Real Estate?
There are several reasons why a home might go back on the market in real estate. The most common reason is that it didn't sell the first time around. This could be due to factors such as an asking price that was too high, the home being in poor condition, or there being an oversupply of homes on the market at that time. When a home doesn't sell initially, it is often relisted to give buyers another chance to purchase it, potentially at a lower price.
Are BOM Houses a Bad Idea?
BOM homes, also known as homes that have been taken off the market and relisted, can raise concerns among potential buyers. It may be seen as a red flag, suggesting that there might be something wrong with the property. However, considering a BOM home can also have its advantages. For instance, you might be able to negotiate a lower price since sellers are likely motivated to sell.
If you're considering making an offer on a BOM home, it's essential to do thorough research and consult with a real estate agent to ensure you're getting a good deal.
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Best Ways to Prevent Your House from Going Back on the Market
As the winter season approaches, homeowners often start thinking about ways to make their homes more appealing to buyers. Here are a few tips to prevent your house from going back on the market:
- Keep your home in good repair: It's crucial to maintain your home in good condition to avoid it being relisted. Fix any damages promptly and stay on top of regular maintenance tasks like painting and landscaping.
- Choose a strategic listing price: Overpricing your home can lead to it languishing on the market. Work with your real estate agent to set a competitive listing price that attracts buyers without pricing yourself out of the market.
Frequently Asked Questions
How is BOM calculated?
When a home is listed as "back on the market," the total number of days it has been off the market is known as the "days on market" (DOM). The counting starts when a listing contract is signed, and the house is removed from all marketing channels. It ends when an offer is accepted or if the seller cancels the listing contract. If a home is relisted within 30 days of being taken off the market, major real estate portals typically won't show any indication that it was previously off the market.
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Can a listing be returned to the market without the seller's fault?
Usually, when a listing is taken off the market, it's because the seller chose to do so or the listing expired. However, there are instances where a listing may be removed due to the fault of the listing agent. This could happen if the agent violates the terms of the listing agreement, fails to follow up with potential buyers, or if there are concerns about the property itself. In such cases, the seller might be able to get the listing relisted without having to pay another commission.
How does BOM affect home prices?
Typically, homes labeled as "back on the market" sell for less than their original asking price. This is because buyers are often hesitant to purchase a home that has already been through the buying process once. They may worry that there's something wrong with the property or that the sellers are desperate to sell. If you're considering buying a home that's back on the market, it's crucial to do thorough research and work with an experienced real estate agent.
How common is it for a home to go back on the market?
It's actually quite common for a home to go back on the market. There are several reasons why this happens, including the seller's inability to find a buyer, the buyer's inability to secure financing, problems discovered during the inspection, or the appraised value coming in lower than expected. If you're interested in buying a home that has been on the market for a while, don't be overly concerned. Just make sure to conduct your due diligence and have realistic expectations.
In Conclusion
In the ever-evolving world of real estate, understanding industry-specific terms like BOM is crucial. Whether you're a buyer, seller, or enthusiast, having a clear grasp of these concepts will help you navigate the market more effectively. So, next time you come across the term "BOM" in a real estate listing, you'll know exactly what it means and what to consider.
