Back on the Market: What Does BOM Mean in Real Estate?

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Written By Justin McGill

DealBloom aims to share the latest tips and strategies to help realtors, brokers, loan officers, and investors navigate the world of real estate.

If you’re in the process of buying a home, you may have come across the term “BOM.” But what does BOM mean in real estate? Keep reading to find out! I remember when I was first looking for homes, I came across a listing that said “BOM no fault of the seller.”

I had no idea what that meant, but it definitely caught my attention. After doing some research. So, what does BOM mean in real estate? I found out that BOM stands for “Back on Market.”

This usually happens when a previous deal falls through and the home is back up for sale.

While this can be frustrating if you’re already under contract on another home, it’s important to know what Bom means so that you can be prepared if it happens during your own home-buying journey.

What does BOM mean in real estate?

The real estate website of the MLS has a section showing properties that have recently been listed, as well as ones that have had their prices increased or decreased. There’s also a special category of homes that were previously for sale but are now off the market.

A “back on the market” (BOM) home is a home that was under contract but is now back for sale.

A “no-fault” situation refers to a situation where a buyer loses interest in a property after a lengthy, unsuccessful short-sale negotiation or fails to obtain final approval for a loan.

Why BOM is required?

A BOM is essential for production planning as it provides a complete overview of the components that are required to build a product. This information is vital for other business processes, such as manufacturing resource planning, product costing, and plant maintenance.

What is BOM in costing?

BOMs are an important component of calculating the cost of a manufactured item. The sources for these estimates are item information, bill of materials, and an indirect costs formula. This data is necessary to get accurate estimates of final manufacturing expenses.

What is BOM in construction?

A bill of materials (or BOM) is a list of all components that are required to assemble a final product.

Things You Should Know Regarding “BOM” Listing Status

Back on Market (BOM) is a common status for homes these days. Click To Tweet

Most often, it is due to a condition of the home which the Seller is not willing to repair when discovered by an inspection.

Occasionally, a house will go “Back on the Market” (BOM) because the Buyer didn’t qualify. Regardless of the reason, there are a few things that sellers and buyers should keep in mind.

1. Disclose all previous inspections.

First thing I always do is figure out why a deal fell apart. If it was the buyer, then that’s fine.

If the deal fell apart due to repairs, I always ask for the inspection report. This way, my Buyer can review it and determine if it’s a deal breaker before wasting any more time. If it was a deal breaker for one party, then it could be a potential deal breaker for another.

If it was fixed, I need a receipt and proof of a guarantee.

If the deal falls apart, then the seller should put the home back on the market.

If the earnest money was an issue, then the seller shouldn’t rush to put the house up for sale.

If the buyer believes that the seller has wronged them in some way, they may choose to sue for specific performance. This would allow the buyer to force the sale of the home if it is proven in court that the seller has defaulted in some way.

TREC’s advice is to not list your house for sale until the earnest money has been returned to you and you have received a written release from the buyer.

If you already have an escrow open with a title company, they will not open another one.

If a buyer is considering a BOM, they should confirm that the previous EM was released to prevent a possible double escrow account.

Just some things to consider when exercising best practices.

What does BOM no fault of seller mean?

A “back on the market” (BOM) home is a home that was under contract, but is now back for sale. A “no-fault” situation is one that was not the fault of the seller, such as a buyer losing interest after a lengthy short-sale or mortgage approval process.

Conclusion

If you’re wondering “what does BOM mean in real estate?”, then this blog post is for you! Find out everything you need to know about BOMs, including what they are and how they can affect your home-buying process.

Justin McGill