WHY is the listing "Back on the Market" ?

By
Real Estate Agent with Keller Williams 414-525-0563 57026-90 Broker

  There is not ONE answer to this question...and sometimes not ONE you can give at all as a listing agent.

   In Wisconsin...there are 3 reasons a home may appear back on the market.  The first is Financing.  While a pre approval

Bankermay have been required (certainly should be) by the listing agent....the Loan Officer/Financial institution may not have done their due diligence.....and as a result the borrower does not qualify for the mortgage.  Can this be fixed ?  Maybe... In Wisconsin...part of the financing contingency states not only the loan amount and maximum interest rate...but also the KIND ofOffer to purchase loan. For example if the offer to purchase is written with conventional financing and the Buyer is found not to qualify ....BUT may qualify for an adjustable rate....but doesn't WANT an adjustable rate...that can get him/her/them out of the contract with earnest money refunded.   This can happen later in the contract should the buyer for example...lose a job...swing their debt to income pendulum by furnishing the whole house, buying a new vehichle, replacing every appliance...before the loan closes.

       If an inspection has been done on a property and the Sellers chose not to repair/replace a defect they must amend Home Inspectorthe real estate condition report to let future buyers know of the problem that was discovered by an earlier inspector.If the defect is serious....the Buyer can cancel the contract. 

     The last reason is appraisal....most offers in our experience especially now in the days of  escalation clauses....have an appraisal contingency...the Buyer has an  out if the property does not appraise for the amount that they wrote in the offer to purchase. 

      When an Agent questions...WHY is a property back on the market....and a condition report has not been changed...the most professional answer by a listing agent is "it was NOT due to an inspection". The Selling agent may make whatever assumptions they wish...ethically,  we don't believe revealing anyone else's financial condition is a good practice for any agent.

       This has been a professional real estate post brought to you by Sally K. & David L.Hanson, Broker Associates with Keller Williams honored to be representing Sellers and Buyers in  southeastern Wisconsin.

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Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
2,398,048
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

This is always a tough one... more often than not I see houses BOM because of a bad inspection. Just had that situation this week. Called the agent to ask why home was BOM after only a week. She said it was a small disclosure issue over age of one of the A/C units, but that she had an inspection report she could send me. That inspection report just about gave me a heart attack! Disclosure issue, my foot! There were structural issues, moisture issues... 65 pages of issues... some fairly material facts. My GC looked at the report and we were up to $25K in repairs in no time and that was scratching the surface. Seller was not disclosing anything, so this was how the agent was covering her fanny in terms of disclosing.

Mar 03, 2018 07:06 AM #1
Rainmaker
865,494
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Sally K. & David L. Hanson - Because we are a second home market and values are a little more conservative, the biggest reason in Sedona I have seen homes BOM is because of the inspection. 

Mar 03, 2018 07:14 AM #2
Rainmaker
3,592,205
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

After 20 years in this Profession I have seen dozens of reasons homes go back on the market.

Mar 03, 2018 07:16 AM #3
Rainmaker
157,363
Mary Jo Quay
Remax Results - Edina, MN

In this market we also have the enthusiastic buyer who wins the highest bid in multiple offers, then wakes up in a sweat terrified of what they did.  I get calls from listings agents who say, "We're not liking this buyer, are you still interested?" One buyer lost his job a week before closing, just before Christmas, it was not a happy time for them.

Mar 03, 2018 07:16 AM #4
Rainmaker
1,093,998
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate

In Texas, we have an "option period" during which the buyer has the unreserved right to terminate the contract for any (or no) reason. The buyer doesn't have to let the seller know why. Sometimes the buyer just gets cold feet. Sometimes the buyer may have offers out on several homes and one that is better suited comes along. Most often, though, it's financing issues, appraisal issues, or condition issues.

Mar 03, 2018 07:40 AM #5
Rainmaker
2,590,796
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Sally and David not that is a great post and one that you should make a video out of, it would be a great one.

 

Mar 03, 2018 07:48 AM #6
Ambassador
1,685,089
Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

I could give you many reasons Sally K. & David L. Hanson  but that is why when I do market reports I never discuss pending sales

Mar 03, 2018 07:59 AM #7
Ambassador
2,712,943
Paul S. Henderson, REALTOR®,CRS,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

Because it's your lucky day BUYER! That is optimistic without a doubt Sally K. & David L. Hanson 

Mar 03, 2018 11:56 AM #8
Ambassador
3,473,819
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally and David those are 3 common reasons around here as well.  The reason I have seen most is because the Buyer was spooked by inspection issues.

Mar 03, 2018 04:21 PM #9
Rainmaker
1,524,235
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good evening Sally and David - that sounds like the best way to address the question.

Mar 03, 2018 05:13 PM #10
Rainmaker
1,760,521
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

In Virginia the seller is not required to inform the next potential buyers of any defects found in a previous inspection.  We are a non disclosure state.  So when a piece of dog doo doo goes back on the market the next inspector will probably say the same thing!

Mar 04, 2018 01:12 AM #11
Rainmaker
2,441,884
James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Sally.

Around here the biggest reason is the inspection, and the failure to come to a compromise

Mar 04, 2018 02:39 AM #12
Rainmaker
4,609,945
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

This is very good information to share with prospective home buyers.

Mar 04, 2018 03:44 AM #13
Rainmaker
4,258,786
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Sally and David.  Some think that a home coming back on the market is a bad reflection on the home.  It should be thought of as an opportunity for another buyer.

Mar 04, 2018 04:41 AM #14
Rainmaker
1,964,380
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

That is one of the most asked questions when a home comes back onto the market, why did it come back?  People always start making assumptions right away.

Mar 04, 2018 06:24 AM #15
Rainmaker
114,474
Erika Rae Albert, Austin Real Estate Expert
E*Rae Real Estate Group- Powered by eXp Realty LLC - Austin, TX
Exceeding Expectations in Every Transaction

I've seen a lot of buyers backing out prior to the inspection recently. This week, I saw one come back on the market because the home didn't have a garage (not quite sure why the buyer would even put an offer in on it if he knew having a garage was important since it was pretty obvious to tell this home didn't have a garage)

Mar 04, 2018 09:29 AM #16
Rainmaker
2,885,562
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hi Sally and David, so many reasons and most not particularly positive.

Mar 05, 2018 05:00 PM #17
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Rainmaker
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
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