“BACK ON THE MARKET”: What does this mean?
September 15, 2015 | Richard Sites
Selling your home? One of the phrases you never want to introduce into the transaction is “Back on the market”. Unfortunately, everyday the MLS reports some houses have come back on the market.
This can be one of the most frustrating parts of selling, so let’s drill down a little a see what it means and how to avoid it.
Typically, when a home is listed for sale and goes under contract there are some contingencies that have to be met in order to close the transaction. Usually they are: 1. Satisfactory inspection of the homes and 2. Securing adequate financing in order to be able to complete the deal.
In today’s real estate market the “As-Is” contract is the one most frequently seen. This form of the contract means that during the inspection or due diligence period the buyer has the time to inspect or investigate any and all things about the house.
Usually this simply means hiring a licensed home inspector or contractor to inspect and evaluate the condition of the home. Then the buyer will decide whether to move forward with the deal or not. Since the deal is “As-Is”, there is usually no negotiation about repairing defective items.
So after the inspection period, usually 10-15 days, a buyer could decide not to move forward and the house could come back on the market. How can you, as a seller, avoid this? Simple. Just have the home inspected before putting it on the market and repair the items that need fixing.
The second issue that could cause a home to come back on the market is the failure to secure financing. How does this happen? The most common problem is that the house fails to appraise for an amount sufficient for the lender to make the needed loan.
Now, a couple of things can happen: 1. The sale price can be lowered or 2. The buyer can come up with more money as a down payment or 3. Some combination of the two.
How can this situation be avoided? Simple. If you are selling, be prepared to lower your sale price to the appraised value to keep the deal together. Collapsing this deal is not going to make your house any more valuable, it just means you will lose the buyer, a buyer who is already emotionally committed to the house, and place the house back on the market.
So if you fail to do the things I have outlined, you get to start the sale process all over again when your home goes “back on the market”. Don’t let this happen to you.
If you would like to have a no pressure conversation about selling quickly and smoothly, contact me using the form below or call me directly at 561-762-4073. And remember, hope is not an effective selling strategy.