What Does BOM Mean in Real Estate

Have you ever come across a property listing that has the abbreviation “BOM” and wondered what it means? You’re not alone. The term BOM is often misunderstood by eager house buyers. When buying and selling properties, it’s important to understand everything that’s going on.

Today, we review the definition of BOM in real estate and uncover what this term means.

What BOM Stands For

BOM stands for “Back On Market.” What does this mean? A home is listed as back on market (BOM) when it was previously under contract is now back up for grabs. The property is officially listed as “Active” on the multiple listing service (MLS), which means buyers can make offers and try to purchase it.

As a hungry homebuyer, this is good news! Imagine you saw a listing you loved, but it got snapped up before you could make an offer. Seeing that listing marked as BOM could be your second chance!

“The stars are aligned.”

The property went from being off-market to active like a boomerang, waiting for you to catch it.

Is the BOM Listing Status a Bad Sign?

What Does BOM Mean Real Estate

BOM is a term that can happen for many different reasons. When a listing turns from pending to back on market, it could be a big red flag.

Back on Market for Sellers

For sellers, having a property go BOM is a bummer. This means the seller was very close to a fast and easy home sale, but it fell out of contract. There were likely issues that prevented the initial sale. The buyer’s financing could have through.

As real estate people know, getting approved for a mortgage isn’t easy. Many real estate transactions turn from pending to BOM because of a mortgage issue. Either way, a seller usually isn’t ‘happy’ about their home being listed back on the market when trying to sell. However, the seller may have dodged a major bullet by not working with that buyer. There’s a silver lining to most bad situations in real estate.

Back on Market for Buyers

On the flip side, buyers may see a BOM status as an opportunity to negotiate a better deal. Just when they thought the house of their dreams was about to be sold, it’s now back on the market. Since the seller is usually getting antsy at this point, they’re more likely to negotiation when their property is BOM after being pending for weeks.

While BOM for buyers can initially seem like a golden buying opportunity, it’s not always as good as it seems. The property may have returned to the market for bad reasons. There could be something on the inspection report that scared the first buyer away, like a cracked foundation. Yikes! Unfortunately, you need to ask the listing agent about why the property was listed as BOM and what happened. This can help you decide if the property is still worth pursuing.

Reasons Why a Property is BOM

Why do properties go BOM? There’s no one-size-fits-all answer. Fortunately, some reasons for a house being listed as back on market aren’t as bad as others.

Here is a list of reasons for the BOM status to appear on a property listing, along with the severity of each.

BOM Reasons: Major Red Flags

  • Failed home inspection due to severe structural issues or water damage.
  • Property is financially underwater from the liens tied to it.
  • Seller isn’t completely truthful about aspects of the property.
  • Deed fraud.
  • Complicated title issues.

BOM Reasons: Not that bad

  • Buyer’s financing falls through.
  • Minor home inspection issues that the buyer doesn’t want to pay for or deal with.
  • Buyer got cold feet and backs out on contract.
  • Buyer has a different offer accepted from this one and backs out.
  • Seller decides to increase the price.
  • Seller plans to fix up the property more and then relist it.

Knowing the specific reason can give you, as a buyer, an advantage when making your offer.

How BOM Affects Buyers and Sellers

What BOM Stands For

Many buyers and sellers are still unsure about the meaning of the real estate term BOM. The back on market status affects both parties differently.

For buyers, a BOM property might be less competitive. This can mean you get a better chance to get the home at a cheaper price. However, you might also inherit whatever issues led the property to go BOM in the first place.

For sellers, going BOM could be a double-edged sword. You have the opportunity to correct any issues and secure a new buyer. That is good! But the BOM status can act as a red flag for new buyers.

What to Look for in BOM Homes

If you’re a buyer looking at a BOM home, review the property disclosures meticulously. A disclosure can shed light on a part of the home that is a deal-breaker for you. For example, if the house was built by someone who didn’t do a good job, you should know that before purchasing it. Additionally, get a high-quality home inspection.

Did the property go back on the market due to structural issues? You’ll want to know that upfront. Ask questions and do your due diligence. This is a major financial investment that you want to make sure is the right move.

How to Put a House BOM

If you’re a seller facing a BOM situation, don’t freak out. The first step is to identify what went wrong in the initial sale and address it. Maybe you need to make some quick repairs or perhaps reconsider your asking price. Once you’ve done your homework, relisting the property as BOM alerts potential buyers that it’s available again. Just be prepared to answer questions about why it’s back on the market.

BOM Zillow Listings: Good or Bad Sign

You might be wondering, “Is seeing a BOM label on a Zillow listing a good or bad sign?” The answer is—it depends. If you’re a buyer, it could be an excellent opportunity to score a property that others might overlook. For sellers, understand that savvy buyers might use the BOM status as a bargaining chip. Overcoming your BOM status won’t be as easy as selling a property in Monopoly to another player. The key is to be transparent. Prep yourself (and your real estate agent) for the questions that will inevitably come.

Navigating BOM in Real Estate

marketing a house for sale San Diego

While the BOM listing status can come with baggage, it’s not a total dealbreaker! As a buyer looking for a steal, seeing a house back on the market could be a great opportunity. From the seller’s perspective, understanding what BOM means is crucial. You’ll be slammed with questions and need to prove to future buyers that your property is trustworthy. Fully knowing the meaning of the ‘back on market’ listing status will help you navigate complicated real estate transactions in the future.