Besides posting our listings in the MLSand the description of the property, there is something else I feel that is both a benefit to the sellers as well as an explanation to the buyers when a property comes back on the market.
No- I am not talking about giving away information that is confidential- what I am referring to is when a listing has fallen under agreement and the loan commitment falls apart, I feel it is the best interest to the sellers to be able to post under property disclosures;BOM due to loan commitment.
Why you ask, here are my reasons;
When the buyer's agentis searching for homes for their clients and they see a home is BOM, my first thought would be that the inspection went bad on the property. To protect the integrity of the property, I feel it is a benefit for the agent to know that it did not fall apart because of inspections.
If a buyer really wanted to view that particular home and their agent told them it was under agreement- of course they know the home is no longer available. Now the buyer is reading his/her emails and finds it back on the market. The buyer will call their agent and want to know why it was back and is there something wrong with the house? The agent can tell his/her client that it was because of commitment not that there was anything wrong with the home. PLUS the buyer will be able to see it themselves when they view the listing. This will keep the interest of the buyer rather than scare the buyer away.
I am not sure what your view is on this but I would like to hear your point of view and feedback.
6 Comments on Buyers should know the answer to BOM if not property related.....
Well it would depend.. What happened to the loan? The buyers didn't qualify, the house did not appraise? I might put this in the agent remarks, but I don't know if I would put it out in the public remarks, unless my seller wanted me too.
Well I would never do that without permission from the sellers. if it was over an appraisal I would not post it as commitment related. I referring as when the buyers can not qualify no longer for the mortgage. It happened twice to the same property in 2 months and to have it back on the market 2 times in a short period of time would make me concerned what the buyers would think as well as the agents to have it off and on like a yo-yo!
How can you make sure that it was not because of some issues in the inspection? I have seen that a couple of time and the seller's agents ALWAYS says it was because of the loan, especially in these days when we see banks doing a better job in qualifying borrowers.
This is a touchy area. If it is back on the market because of an inpsection I would not want to reveal that. One of the funniest things I've ever seen though was a listing back on the market and in the "agents only" remarks sections were the following words: "BOM - financing fell through - THANKS XYZ MORTGAGE!!" It didn't last long as XYZ mortgage got wind of it and complained...
Well how I can be sure it is not from inspection- well since I am the listing agent and I am given the information from the buyer's agent that the program had changed and they no longer qualify then receive a fax to back it up- well that tells me the financing fell apart. When it fell apart it never made it to inspections.
Although financing has gotten tighter - programs do change and some buyers lend up with the loss of the financing if they are not under P&S or closed on the deals.
I would NEVER post it as a financing issue if it was about appraisal or inspections. I DO NOT work that way.
I hope you didn't misunderstand me. I was not implying that YOU would do something unethical. My comment meant that sometimes you get the feeling that the other party is not telling you the truth about why the house came back on market.
The listing agent should update the Residential Property Condition Disclosure after any inspection that finds any of the issues covered in such form, but I am not sure that's happening. A previous potential buyer might have felt affraid of the inspection results even if the issues found were not necessarily hard to fix, or covered in the Prop. Cond. Disclosure. The listing agent should be able to recommend his/her client to fix them for this or the next buyer, or to offer a credit to fix those issues, or reflect it in a price reduction when the property comes back on market.
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Well it would depend.. What happened to the loan? The buyers didn't qualify, the house did not appraise? I might put this in the agent remarks, but I don't know if I would put it out in the public remarks, unless my seller wanted me too.