We still have more residential homes selling or pending than are listed - we have 1.2 months of inventory for the past 30 days.
This week I wanted to talk about the "Back on Market" category. There are several reasons that listings come back on the market:
1. "Failed" inspection - Inspections are not pass or fail but there are a few reasons that one may say they failed inspection like when a buyer/seller cannot come to terms on the inspection response or when the bank won't loan on a home for some reason such as no heat source.
2. Financing - If a buyer has a job change or go out and buy a new car and are no longer qualified (by the bank) to purchase the property, this can make a house come back on the market.
3. Low appraisal - A low appraisal itself doesn't kill a deal but if the buyer/seller cannot come to terms on lowering a price or bigger down payment, this can cause a listing to come back on the market. We tend to see this more in a seller's market where multiple offers drive the price up.
4. Failed home sale contingency - sometimes a buyer's home doesn't sell in the timeframe allowed and they cannot follow through with the purchase.
5. Title defects - the title company finds a problem or there is a "cloud" on the title (ask me about this if you want more info).
6. Liens (not as frequent) - there are several liens like construction liens that can cause problems with closing.
7. Buyer's cold feet - yep, and guess what? A buyer has a lot of ways to get out of buying without losing their earnest money. I may go into this more in other posts, so watch for more on this.
I'm sure there are more crazy things that can happen when you are buying your biggest investment but it's not always because the house/property has problems, so keep that in mind when you are looking at a house that has come "Back on the Market"
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