What Does Bom Mean In Real Estate is often unpredictable, and specific terms are coined to help people understand a property’s status. So, what exactly does “BOM” mean in real estate? In New York City and beyond, you might come across the term “BOM.” Let’s delve into the meaning of BOM in real estate and what it implies for buyers and sellers.
BOM Definition in Real Estate
BOM stands for “Back On Market,” and it’s a commonly used acronym in the real estate industry. It refers to a property that is once again available for sale after an initial offer or contract has fallen through. This situation can arise due to various reasons, such as a buyer’s financing falling through, unexpected issues with the buyer, or a change of mind.
Why a House Goes BOM in Real Estate
A property becomes BOM primarily because a previous deal with a buyer didn’t proceed as planned, but the seller is still committed to selling and is open to finding another buyer. Common reasons for a property going BOM include:
- Payment Issues: If a potential buyer’s loan application is denied or the home appraisal comes in low, it can lead to a deal falling through.
- Unmentioned Problems/Bad Faith Sales: Major issues with the property discovered during inspections can cause a sale to collapse.
- Contingency-Related Issues: When a sale is contingent on specific repairs or actions, it may result in the deal falling apart if those conditions aren’t met.
Impact on Home Price and Market Time
A property going BOM can have an impact on its sale price and market perception. The longer a property stays on the market, the more likely buyers are to expect a price reduction. They may also feel they have more room for negotiation. Additionally, the days on market counter typically continues from where it left off when a property goes BOM, affecting the perception of how long it’s been available.
Preventing a Property from Going Back On Market
While not all sales can be prevented from going BOM, sellers can take proactive steps to reduce the chances:
- Pre-Sale Inspection: Conduct a home inspection before listing the property and address any issues found.
- Cash Buyers: Give preference to cash buyers to avoid potential financing-related setbacks.
- Careful Contingencies: Review and carefully consider the contingencies in offers to minimize potential risks.
- Transparency: If your property has previously gone BOM, be upfront about what happened to build trust with potential buyers.
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In conclusion : What Does Bom Mean In Real Estate
When you encounter a property labeled as BOM in real estate, it means it’s back on the market after a previous deal fell through. While it can affect the perception of price and market time, it doesn’t necessarily indicate a problem with the property itself. Buyers and sellers should communicate openly to navigate this situation effectively.