As a Listing Agent, you must deal with the Seller's frustration of thinking that the house was sold. The Inspection fails, or the Financing falls through, and now the house is Back on Market.
On the Buyer's Side, the Buyers may want to Lowball the price, because there MUST be something wrong with it since it is BOM!
Does "Back on Market" Mean Your Home is Considered "Damaged Goods"?
This is one of those questions that you really hate to answer as a listing agent or as a buyers agent for that matter.
As a listing agent, you are dealing with the seller's frustration of thinking that there house was sold and they could move forward and then the inspection finds some unsavory things or the buyer's financing doesn't come together, and back on the market you go.
As a buyers agent, I cringe when buyers ask me this question, because really, they are looking for an okay signal to just lowball the house because there MUST be something wrong with it. Why else would it be "back on the market"?
There are things that we do as listing agents to minimize the damages of having this happen. Especially with a newer listing that was sale pending right away. We are superstitious and we don't put the sale pending sign out until the inspections are completed. We continue to show the property for a period after the contract is accepted and try to secure a back up offer to get leverage. There are many things that we do for our sellers to try to minimize the risk of being off the market. Why? Because when the first offer turns upside down and the buyers want or need out, we don't like to be the bearers of the bad news. We like to be able to give positive solutions!
Our MLS shows in the bottom corner that it is back on market with the date. Without that signifier, the agent could still look at the history of the listing and see that it was sale pending and then came back on during what they assume was the listing period.
As sellers, you need to know that sometimes things happen and the best solution is to get your home back on the market and in front of a new pool of buyers. It may be a second chance for a buyer that was on the fence that didn't offer the first time they saw it and is still out looking. If there was an inspection issue that was a deal breaker for the first buyer, maybe consider addressing it prior to receiving another offer. After all, most buyers will ask to have an inspection done, and most inspectors are going to find the same issues. Or you could address the issue in the offer by offering compensation for the buyer to have the item remedied.
Either way, know that this is a momentary setback and it does not mean that your home will never sell. It just means that we are starting over and we will be more aggressive in getting your house out to as many buyers as possible to secure another offer quickly.
Karen Feltman, REALTOR®, ABR, AHS, CHMS, CNE, CRS, e-Pro, green, GRI, SRES, TRC
411 First Avenue SE, Suite 500
Cedar Rapids, Iowa 52401
Licensed in the State of Iowa
© 2013 by Karen Feltman, Cedar Rapids/Iowa City Relocation Specialist
Frederick Griffin, Licensed Florida Real Estate Broker
Tallahassee Florida Metropolitan Area
Disclaimer: Nothing in the above blog article is to be construed as legal advice, tax advice, or financial advice. For legal advice see an attorney. For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.