Back on Market - What does that mean?
Have you ever seen a home listed as back on market and you wonder what it means? Does it immediately make you question what is wrong with that home?
There are many reasons why a home may come back on market and it doesn’t always mean it’s a red flag! There are three reasons we are seeing it in this market:
Buyer’s Remorse! Sometimes a buyer gets their offer accepted and immediately starts feeling the pressure! Many times, they don’t even conduct the home inspection before terminating their agreement during the option period.
Buyer’s Job Loss or Financing! This is unfortunate, but true. A new line of credit or a large purchase right before closing can change a buyer’s debt to income ratio and disqualify them from the loan. We’ve also seen buyer’s lose their employment or quit a job before closing. This will also disqualify them from the loan!
HOA Restrictions for Investors! Sometimes, a cash buyer is an investor who plans to rent the home out after closing. Once they receive the HOA covenants, they realize there is a cap on how many rental properties there can be in that specific community.
These three reasons are not the fault of the home or the seller. Yes there are less common issues that may lead to a back on market status, but in this market, it’s not the norm.
**PRO TIP** Have your agent look at the back on market listings and ask them to call the listing agent to do a little background check on the home. Often times, the listing agent is super motivated to get it under contract again and will tell you what you want to know!
**BONUS TIP** For my seller’s: This is why I ALWAYS advise accepting a back up offer! It’s a protection in case something happens before closing!
