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Things You Should Know Regarding "BOM" Listing Status

By
Real Estate Broker/Owner with Criado Realty 0548772

Back on Market (BOM) is a frequent status I see these days and I'm not surprised. Most often its due to a condition of the home which the Seller is not willing to repair when discovered by an inspection. On ocassion its a result of the Buyer not qualifying.  Regardless of why the house goes BOM, there are some important things Sellers and Buyers should consider.

1.  Disclosure - All previous inspection reports should be disclosed. The first thing I always is is, why did the deal fall apart?  If it was the Buyer, fine. But if it was a repairs issue, then I ask for the inspection report so my Buyer can review before wasting valuable time. If it was a deal breaker for one, then potentially could be a deal braker for another. If it was repaired, I want the receipt and warranty of the repair.

2.  Termination - If the Buyer falls out, then it can easily be assumed by the Seller they should put the house BOM. But if the Earnest Money is in question, then it could be a legal issue for the Seller. Perhaps they shouldn't move quickly to put it on the market. If the Buyer believes the Selle wronged them, they could sue for specific performance. Meaning, the Buyer can force the Seller to sell the home if in a court it is proven the Seller defaulted. I was reading an industry journal on that today and TREC's consens is, don't put the house on the market until the EM has been refunded and you receive a letter from Buyer that they release the house.

3.  Escrow -  Title companies may not open another escrow if there is one already in place. If a Buyer is considering a BOM they should confirm as well as the disclosures if the previous EM was released to prevent a possible double escrow account. 

 

Just things to think about to exercise best practice.

 

Posted by
Cathy Criado President & Founder
MBA, REALTOR, BROKER, NAR GREEN, EcoBroker
Published Author
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Brenda Mullen
RE/MAX Associates - San Antonio, TX
Your San Antonio TX Real Estate Agent!!

All previous inspection issues or repair issues should be disclosed IF the seller knows what they are.  Many times the buyer does not give the inspection over to the seller as it is the buyers property.  I would think if something was repaired with the receipt, then this would have not been what made the deal "fall apart".

Most BOM that I find have to do with the buyer not qualifying.  By the time we go to put in an offer on a home, I would hope that there are no earnest money disputes going on lol. 

 

Jun 03, 2013 05:21 AM
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Cathy, I've had buyers of properties NOT give permission for the inspection report THEY paid for be viewed by others.  But, the sellers were told of the repairs needed, and should disclose, for sure.  

Jun 03, 2013 05:46 AM
Cathy Criado
Criado Realty - San Antonio, TX
Making Real Estate Profitable

Hi Brenda -  True that about buyers not qualifying.  Lenders are just much more tight. 

 

Jun 03, 2013 05:52 AM
Cathy Criado
Criado Realty - San Antonio, TX
Making Real Estate Profitable

Hi Juli - Yes, you and Brenda say the truth, many Sellers who paid for their inspection don't share. But in the end it hurts them often because how can we negotiate repairs without providing facts. Sometimes some real estate agents will copy/paste the information right into the amendment, which is fine for sure, but to have the agent type up in their own words open it up for a potential law suit and we're not lawyers so paraphrasing, etc. isn't best practice. Every situaion is different and needs to be handled that way, however.

Jun 03, 2013 05:55 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Cathy - We can't always get the inspection report, since it's the property of the previous would-be buyer, who may not be willing to release it. But we do expect full disclosure of any material defects - and there may not be any, since our inspection termination is at the "buyer's subjective discretion", i.e., any reason at all.

Jun 03, 2013 07:43 AM
Jean Hanley
Coldwell Banker Kivett Teeters - Hemet, CA
Specializing in Folks Who Want To Buy/Sell Homes

Although my buyer has paid for a home inspection, and then decides against the purchase, I often times withh get their permission to share the report with the seller's agent.  We all need to work as a team.

Jun 03, 2013 07:44 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

HELLO stranger, welcome back to posting. A very good subject in deed as most buyers do not know what BOM stands for. I see many homes coming BOM after the buyer asks an unreasonable request for money or to renegotiate after an inspection that leads to the canceling of the contract. have a good Tuesday

Jun 03, 2013 11:15 PM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Tennessee has a standard disclosure form. This form doesn't go into every facet of a property. When a buyer has a home inspection completed, he owns the inspection report. He paid for it. If he walks away from a sale, we can't just disclose that for another buyer to use. Additionally, agents don't usually send us the entire report. They send us a repair request and may attach a segment of a report but it's not necessary.

So let's say, the buyer has asked for a lot of honey-do items; tighten the door knobs, replace weather stripping around back door, powerwash siding. None of these items appear on our property condition disclosure. I am not required to disclose this list of items to the next buyer. All the important information is already documented on the disclosure. Unless, the inspection reveals a major defect and we are notified of such defect, it may not require disclosure.

Jul 17, 2013 02:58 AM