6 Common Reasons Homes Come Back On The Market

By
Real Estate Agent with Amanda Davidson Real Estate Group 0225221517

6 Common Reasons Homes Come Back On The Market
No home seller or agent wants to go from pending to active and back on the market. Buyers and sellers make an agreement on a home and everyone including the agents hope the sale goes according to plan but, unfortunately, that’s not always the case. So, why do pending home sales fall through? There are quite a few issues that can come up leading to a home going back on the market.

Why Do Homes Come Back On The Market

Re-listing a home as active again can cause buyers to be concerned that there’s something wrong with the home. That’s a myth and not always the case. As long as your agent can determine what caused a contract to fail homes that come back on the market aren’t something to blacklist during your home search.

Whether you are buying or selling knowing why homes go back on the market is useful so that you can do your best to avoid these situations.

Home Inspection Problems
Problems from the home inspection are the number one reason a home comes back on the market. It’s a home inspector’s job to go through a home and identify problems.

After the home inspection is completed the home buyer may now be aware of some problems with the home and they could be costly. The seller can always negotiate to come to an agreement to have repairs completed, reduce the sale price, or credit the buyer. If an agreement can’t be made between the buyer and the seller the buyer can walk.

Home inspectors can make mistakes occasionally, after all, they are human. However, most of the time they are well trained and in Virginia they have to be licensed so odds are if they find a big issue it’s worth looking into. 

 

There is a way to prevent a house coming back on the market due to home inspection problems. How? Get a pre-listing home inspection before you put your home on the market. Then you’ll know the condition of your home before it hits the market and can address any issues that need to be resolved.

 

Being prepared for the buyer’s home inspection always works in your favor. Follow these 5 tips for a smooth home inspection.

Reasons Homes Come Back On The Market


The Home Didn’t Appraise

If the buyer is obtaining financing and doesn’t waive the appraisal contingency there will without a doubt be an appraisal conducted on the home. An appraiser will analyze properties similar to the subject home and review recent sales in the area. Upgrades, special features, number of beds and baths, lot size, and location are all factors an appraiser will consider.

 

If the appraisal comes in at lower than the agreed upon price and the buyer and seller cannot come to terms the buyer can walk.

 

The Buyer’s Financing Was Denied
Buyers can get pre-approved and pre-qualified for a mortgage but, that doesn’t mean their financing is guaranteed. If a buyer loses his or her job they could find that buying a home is no longer an option.

 

It’s good business for a listing agent to contact a buyer’s lender to ensure they are able to qualify. Doing so doesn’t mean it’s a sure thing though. Some lenders pre-vet buyers better than others. Some buyers make dumb decisions such as taking out another loan during the process home buying process that causes them to no longer be able to buy.

Why Do Homes Come Back On The Market

Buyer’s Remorse
Real estate isn’t exempt from buyers getting cold feet. It can happen for a variety of reasons.

 

Perhaps they made an emotional decision because there were multiple offers and they got caught up in winning a bidding war. Maybe the home was just so perfectly presented they made an offer before thinking about it financially being a stretch.

 

Whatever the reason for buyer’s remorse it leaves sellers in a bad spot. Even if a buyer has to forfeit their deposit that still means the seller has to find another buyer. Deposits are in place to discourage this type of behavior.

 

The higher the deposit the better for the seller. Even with a high deposit that doesn’t mean there’s no chance of the buyer getting cold feet and backing out.

 

Buyers Could Be Submitting Offers On Multiple Homes
Unless a buyer can afford to buy more than one home at a time they shouldn’t be making offers on multiple homes. However, depending on market conditions there are cases where buyers are working with an incompetent agent who is willing to write offers on multiple homes at one time knowing the buyer can’t buy more than one.

 

All it takes is two offers being accepted at the same time and there’s a big problem.

 

Sound far-fetched? It’s not and it happens more frequently when markets are very competitive. It’s not only unfair to sellers and agents it’s just plain deceitful behavior.

 

To avoid a home going back on the market because the buyer made offers on multiple homes the listing agent should have a conversation with the buyer’s agent. The goal is to get as much information about the buyer’s sincerity in the offer before the seller accepts it.

 

It doesn’t remove the risk but, it lessens it for the seller. The more that’s known about the buyer’s intentions the better.

 

Title Issues Are Uncovered On The Home
Title issues can put a halt to a sale quickly. There are a variety of ways these can occur; illegal deeds, unknown easements, forgeries, unreleased previous mortgages, and liens.

 

As soon as a home is pending the title search should be done promptly. The most common title issue is a lien that is tied to a property. This means that the debt has to be paid before the owner can sell the home. If that can’t be accomplished the sale cannot happen.

 

Closing Thoughts
Homes come back on the market for a variety of reasons. There are cases when coming back on the market can be avoided and there are others where it can’t be. All parties, agents included should work together to the best of their ability to achieve a successful outcome.
 

 

 

Posted by

 

Amanda Davidson Real Estate Group

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AMANDA DAVIDSON  
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l AMANDA DAVIDSON REAL ESTATE GROUP BROKERED BY eXp REALTY l

C  703.431.3755   |   O  703.988.3151  |   W  www.amandadavidson.com

A  20130 Lakeview Center Plaza #400 Ashburn, Va 20147




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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Sally K. & David L. Hanson 05/08/2019 05:56 AM
  2. Roy Kelley 05/31/2019 01:00 AM
Topic:
Real Estate General Information
Location:
Virginia Fairfax County Alexandria Kingstowne
Tags:
home buyer tips
home seller tips
why do homes come back on the market
common reasons homes come back on the market
why do real estate deals fall apart

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Rainmaker
1,505,748
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Debe Maxwell, CRS hi! It's always a bummer when that happens, sometimes it just can't be avoided. A letdown for all but, I know you will secure a new buyer quickly and see your sellers to a smooth closing!

May 12, 2019 06:47 AM #31
Rainmaker
1,505,748
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Dorie Dillard CRS GRI ABR thank you! I agree and know you are a pro at managing expectations. It's all in a days work for you!

May 12, 2019 06:48 AM #32
Rainmaker
5,214,607
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Sunday afternoon, Amanda. Have a very special day and an outstanding week.

May 12, 2019 11:17 AM #33
Rainmaker
2,470,791
Rebecca Gaujot, Realtor®
Vision Quest Realty - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Amanda, I have had one listing to go back on the market within two days of closing. The buyer got cold feet. 

May 12, 2019 05:32 PM #34
Rainmaker
1,505,748
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Roy Kelley thank you! I hope you have a great week. Happy Monday!

May 13, 2019 04:33 AM #35
Rainmaker
1,505,748
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Rebecca Gaujot, Realtor® that's always a tough one to swallow. I had that happen last year and everyone was shocked, myself included. Makes me wonder if they had doubts they didn't express all along.

May 13, 2019 04:34 AM #36
Rainmaker
375,101
Matthew Klinowski, PA
Downing-Frye - Naples, FL
Golf Community Real Estate Specialist

Hi Amanda, great points. We see re-listing quite a bit in our area since we are in a seasonal area in Naples.  Homeowners will put their property on the market for season and if it doesn't sell, they will wait until the following year to re-list.

May 13, 2019 04:44 AM #37
Rainmaker
3,028,015
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Great post! I know none of your homes come back on the market though!

May 13, 2019 06:55 AM #38
Rainmaker
1,505,748
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Matthew Klinowski, PA that makes a lot of sense and is a great illustration of how local real estate is. What's common in one area may not be in another. Thank you for adding to the conversation!

May 13, 2019 07:36 AM #39
Rainmaker
1,505,748
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Kristin Johnston - REALTOR® thank you! Fortunately not very often but, there have been a couple. Sometimes it just can't be avoided.

May 13, 2019 07:41 AM #40
Rainer
468,049
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Great list, tips and post. Almost all can be avoided, however, the buyer's agent should be keenly aware of any possible issues during the process that might prevent closing and take action immediately. 

May 14, 2019 02:51 AM #41
Rainmaker
1,505,748
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Kimo Jarrett I agree, very well said. 

May 14, 2019 04:56 AM #42
Rainmaker
278,568
Shirley Coomer
Keller Williams Realty Sonoran Living - Phoenix, AZ
Realtor, Keller Williams Realty, Phoenix Az

Great information and another reason why having a buyer consultation is so important.  Your blog is a great roadmap to use when working with buyers to prepare them for the buying process.  This is also excellent to share with sellers who may want to get a preinspection and even consider an appraisal ahead of time!

May 14, 2019 06:04 AM #43
Rainmaker
363,630
M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
Santa Cruz Mountains Property Specialist

Another intelligently written post - thanks!    Here in CA we often order a preliminary title report when we get the listing to try to avoid losing an escrow...

May 14, 2019 07:59 AM #44
Rainmaker
1,505,748
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Shirley Coomer thank you! Managing expectations is always a good thing. Granted, sometimes it's just unavoidable for a home to come back on the market but, we can always do our best to avoid it!

May 14, 2019 09:17 AM #45
Rainmaker
1,505,748
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

M.C. Dwyer that's a great way to avoid losing a deal in escrow and I'm sure it has saved many from falling out!

May 14, 2019 09:18 AM #46
Rainmaker
391,025
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

We are seeing Pre-Listing home inspections on the increase.

Know up front issues you may face. Then you can deal with them in advance or be prepared to negotiate.

It is not uncommon for an appraiser to surprise everyone with a lower appraisal. Sometimes that is just unavoidable.

May 14, 2019 10:36 AM #47
Rainmaker
492,826
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

I'll add-when a house flips, don't necessasrily discard it as a possibility for the buyers. Most of the time the flip happens at no fault of seller.

May 15, 2019 08:07 PM #48
Rainmaker
1,505,748
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

John Wiley that's great pre-listing inspections are on the rise. It can avoid so many problems once under contract. Very true on the appraiser.

May 16, 2019 05:14 AM #49
Rainmaker
1,505,748
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Mary Hutchison, SRES, ABR that's a great addition, I completely agree. 

May 16, 2019 05:15 AM #50
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