Realtor - Amanda S. Davidson: 6 Common Reasons Homes Come Back On The Market

6 Common Reasons Homes Come Back On The Market

6 Common Reasons Homes Come Back On The Market
No home seller or agent wants to go from pending to active and back on the market. Buyers and sellers make an agreement on a home and everyone including the agents hope the sale goes according to plan but, unfortunately, that’s not always the case. So, why do pending home sales fall through? There are quite a few issues that can come up leading to a home going back on the market.

Why Do Homes Come Back On The Market

Re-listing a home as active again can cause buyers to be concerned that there’s something wrong with the home. That’s a myth and not always the case. As long as your agent can determine what caused a contract to fail homes that come back on the market aren’t something to blacklist during your home search.

Whether you are buying or selling knowing why homes go back on the market is useful so that you can do your best to avoid these situations.

Home Inspection Problems
Problems from the home inspection are the number one reason a home comes back on the market. It’s a home inspector’s job to go through a home and identify problems.

After the home inspection is completed the home buyer may now be aware of some problems with the home and they could be costly. The seller can always negotiate to come to an agreement to have repairs completed, reduce the sale price, or credit the buyer. If an agreement can’t be made between the buyer and the seller the buyer can walk.

Home inspectors can make mistakes occasionally, after all, they are human. However, most of the time they are well trained and in Virginia they have to be licensed so odds are if they find a big issue it’s worth looking into. 

 

There is a way to prevent a house coming back on the market due to home inspection problems. How? Get a pre-listing home inspection before you put your home on the market. Then you’ll know the condition of your home before it hits the market and can address any issues that need to be resolved.

 

Being prepared for the buyer’s home inspection always works in your favor. Follow these 5 tips for a smooth home inspection.

Reasons Homes Come Back On The Market


The Home Didn’t Appraise

If the buyer is obtaining financing and doesn’t waive the appraisal contingency there will without a doubt be an appraisal conducted on the home. An appraiser will analyze properties similar to the subject home and review recent sales in the area. Upgrades, special features, number of beds and baths, lot size, and location are all factors an appraiser will consider.

 

If the appraisal comes in at lower than the agreed upon price and the buyer and seller cannot come to terms the buyer can walk.

 

The Buyer’s Financing Was Denied
Buyers can get pre-approved and pre-qualified for a mortgage but, that doesn’t mean their financing is guaranteed. If a buyer loses his or her job they could find that buying a home is no longer an option.

 

It’s good business for a listing agent to contact a buyer’s lender to ensure they are able to qualify. Doing so doesn’t mean it’s a sure thing though. Some lenders pre-vet buyers better than others. Some buyers make dumb decisions such as taking out another loan during the process home buying process that causes them to no longer be able to buy.

Why Do Homes Come Back On The Market

Buyer’s Remorse
Real estate isn’t exempt from buyers getting cold feet. It can happen for a variety of reasons.

 

Perhaps they made an emotional decision because there were multiple offers and they got caught up in winning a bidding war. Maybe the home was just so perfectly presented they made an offer before thinking about it financially being a stretch.

 

Whatever the reason for buyer’s remorse it leaves sellers in a bad spot. Even if a buyer has to forfeit their deposit that still means the seller has to find another buyer. Deposits are in place to discourage this type of behavior.

 

The higher the deposit the better for the seller. Even with a high deposit that doesn’t mean there’s no chance of the buyer getting cold feet and backing out.

 

Buyers Could Be Submitting Offers On Multiple Homes
Unless a buyer can afford to buy more than one home at a time they shouldn’t be making offers on multiple homes. However, depending on market conditions there are cases where buyers are working with an incompetent agent who is willing to write offers on multiple homes at one time knowing the buyer can’t buy more than one.

 

All it takes is two offers being accepted at the same time and there’s a big problem.

 

Sound far-fetched? It’s not and it happens more frequently when markets are very competitive. It’s not only unfair to sellers and agents it’s just plain deceitful behavior.

 

To avoid a home going back on the market because the buyer made offers on multiple homes the listing agent should have a conversation with the buyer’s agent. The goal is to get as much information about the buyer’s sincerity in the offer before the seller accepts it.

 

It doesn’t remove the risk but, it lessens it for the seller. The more that’s known about the buyer’s intentions the better.

 

Title Issues Are Uncovered On The Home
Title issues can put a halt to a sale quickly. There are a variety of ways these can occur; illegal deeds, unknown easements, forgeries, unreleased previous mortgages, and liens.

 

As soon as a home is pending the title search should be done promptly. The most common title issue is a lien that is tied to a property. This means that the debt has to be paid before the owner can sell the home. If that can’t be accomplished the sale cannot happen.

 

Closing Thoughts
Homes come back on the market for a variety of reasons. There are cases when coming back on the market can be avoided and there are others where it can’t be. All parties, agents included should work together to the best of their ability to achieve a successful outcome.
 

 

 

 

Amanda Davidson Real Estate Group

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AMANDA DAVIDSON  
l ASSOCIATE BROKER l  
l AMANDA DAVIDSON REAL ESTATE GROUP BROKERED BY eXp REALTY l

C  703.431.3755   |   O  703.988.3151  |   W  www.amandadavidson.com

A  20130 Lakeview Center Plaza #400 Ashburn, Va 20147




Comment balloon 50 commentsAmanda S. Davidson • April 29 2019 09:44PM

Comments

Hi Amanda... great list and it will be very helpful for sellers to understand that there's always a chance that their home could fall out of contract.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage ) 18 days ago

Having an agent that is "ON IT"....makes all the difference...we are using this in our pre-listing presentation today !

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) 18 days ago

Good list, Amanda. Some items can be addressed before the house is listed. We order a prelim immediately upon taking a listing--that alerts one to any possible title issue which can be worked out prior to going on the market. The same with a home inspection. Buyer's remorse is the big wild card I see here.

Posted by Lottie Kendall, Helping make your real estate dreams a reality (Compass) 18 days ago

Great post and just because a home comes back on the market doesn't mean there is something wrong with it.  I have had plenty of buyers that missed out on a home and hoped it would come back onto the market.

Posted by Brian England, MBA, GRI, REALTOR® Real Estate in East Valley AZ (Arizona Focus Realty) 18 days ago

This is very good information to share with prospective home buyers and home sellers.

Posted by Roy Kelley (Realty Group Referrals) 18 days ago

I am so glad you didn't say the home inspection!

That's because you are a veteran.

Just yesterday I had a crawl space with what was obviously active water intrusion into the crawl space.  It rained last week, and there was still water in there.

The seller had said there was never a water issue in the crawl.  Well, obviously not the case.  And there were many other problems because of the continued water presence.

So my client reconsidered!

Did the seller think we would not check?

Posted by Jay Markanich, Home Inspector - servicing all Northern Virginia (Jay Markanich Real Estate Inspections, LLC) 18 days ago

Amanda S. Davidson - Your list of possibilities are endless and true! I always appreciate your wisdom and knowledge. Buyers and Sellers are fortunate when they hire you. 

Posted by Patricia Feager, MBA, CRS, GRI,MRP, Selling Homes Changing Lives (DFW FINE PROPERTIES) 18 days ago

Yes Amanda, deal can come back on the market and you covered the many reasons why. We just had a condo go back on the market because the buyer got sick. Stuff happens...

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Home and Condo Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) 18 days ago

Hello Amanda, Thank You for your points on this subject.  It is also a blog I would like to reblog down the road.

 

Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) 18 days ago

It's not a done deal until that check is in hand.

I thought selling our past homes was stressful, but my son just sold his home and I was more worried on that sale than on any of ours. First deal fell through, but second buyers closed for more than the first buyers were going to pay. Worked out well for my boy!

Posted by Sharon Tara, New Hampshire Home Stager (Sharon Tara Transformations) 18 days ago

Hi Amanda S. Davidson

Your lists are always so complete and full of good information for buyers and sellers.  Your clients hit the lottery when they pick you to represent them. Simply... they have the best agent to represent them. 

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Residential Brokerage) 18 days ago

Good evening Amanda - you have put together all the things that people should know.  A good listing agent will prepare the seller and manage the process.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 18 days ago

Amanda all good points, but if I may add, poor management of the expectation of the buyers by the buyer's agents and the same goes for the sellers and the listing agents...Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) 17 days ago

Nina Hollander thank you! I hope it will help at least one seller. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 17 days ago

Sally K. & David L. Hanson very true and I know you are both always on it!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 17 days ago

Lottie Kendall you're a true professional and I am sure very few of your contracts fall through because you're on top of all the details. If we could figure out how to eliminate buyers remorse we'd really be on to something!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 17 days ago

Brian England I love that you added that to the conversation. Very true and something I'm seeing a lot of right now. Buyers are poised and ready to pounce if a home they missed out on comes back on the market. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 17 days ago

Roy Kelley thank you! I always appreciate your comments. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 17 days ago

Jay Markanich no water issues there and I'm also going to win the lottery today. Those sellers are either clueless or struggle with the truth. Your picture says it all! I'd never say it's due to the home inspection, it actually irritates me when I hear someone say that. People are what cause homes to come back on the market, not inspections!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 17 days ago

Patricia Feager, MBA, CRS, GRI,MRP thank you very much. I really enjoy sharing information about real estate and how it works. If it helps even one person then I feel like I've done my job.

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 17 days ago

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 you're exactly right. Stuff happens and it's just part of real estate. You'll have it back under contract in no time! 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 17 days ago

Will Hamm anytime, thank you for your comment. You are always welcome to re-blog my posts. I appreciate you sharing them!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 17 days ago

Sharon Tara even with the best agent leading the charge selling is stressful, more so than buying IMHO. I'm happy that it all worked out for your son. An added bonus that the 2nd buyers paid more!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 17 days ago

Sheri Sperry - MCNE® you are very kind and your comments always give my self-confidence a boost. Thank you. I really enjoy sharing what I've learned over the years and keeping an open mind to continue learning. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 17 days ago

Grant Schneider I completely agree. Your comment made me think that I could write a blog about that. It can make all the difference. Thank you for the idea!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 17 days ago

Endre Barath, Jr. a very accurate and honest addition - I agree! You and Grant Schneider gave me an idea for that to be a post. Managing expectations could have saved a lot of deals over the years and is yet another reason not all agents are created equal. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 17 days ago

Hello Amanda - a good list for every wannabe home seller.  "You are not alone and you are not the first."  It happens.  We move forward.  

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 17 days ago

Hi Amanda! As always, a wonderful post that covers managing expectations for sellers very well. When you pre-inspect, you catch many of the 'deal breakers' as we call them! 

I did have one that fell through this week due to financing. Even though the buyer was pre-approved, employment hiccups kept them from moving forward. Sadly, it wasn't one that we had been able to nab a back-up buyer yet so, we're back on the market!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 15 days ago

Good morning Amanda S. Davidson ,

So glad to see your post featured! Managing expectations for both sellers and buyers is crucial to stay on tract and make it to the closing table. Good job.

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.750.6899) 14 days ago

Michael Jacobs as always you said it best. Thank you for your comment!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 14 days ago

Debe Maxwell, CRS hi! It's always a bummer when that happens, sometimes it just can't be avoided. A letdown for all but, I know you will secure a new buyer quickly and see your sellers to a smooth closing!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 14 days ago

Dorie Dillard CRS GRI ABR thank you! I agree and know you are a pro at managing expectations. It's all in a days work for you!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 14 days ago

Good Sunday afternoon, Amanda. Have a very special day and an outstanding week.

Posted by Roy Kelley (Realty Group Referrals) 14 days ago

Amanda, I have had one listing to go back on the market within two days of closing. The buyer got cold feet. 

Posted by Rebecca Gaujot, Realtor®, Lewisburg WV, the go to agent for all real estate (Vision Quest Realty) 14 days ago

Roy Kelley thank you! I hope you have a great week. Happy Monday!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 13 days ago

Rebecca Gaujot, Realtor® that's always a tough one to swallow. I had that happen last year and everyone was shocked, myself included. Makes me wonder if they had doubts they didn't express all along.

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 13 days ago

Hi Amanda, great points. We see re-listing quite a bit in our area since we are in a seasonal area in Naples.  Homeowners will put their property on the market for season and if it doesn't sell, they will wait until the following year to re-list.

Posted by Matthew Klinowski, PA, Golf Community Real Estate Specialist (Downing-Frye) 13 days ago

Great post! I know none of your homes come back on the market though!

Posted by Kristin Johnston - REALTOR®, Giving Back With Each Home Sold! (RE/MAX Realty Center ) 13 days ago

Matthew Klinowski, PA that makes a lot of sense and is a great illustration of how local real estate is. What's common in one area may not be in another. Thank you for adding to the conversation!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 13 days ago

Kristin Johnston - REALTOR® thank you! Fortunately not very often but, there have been a couple. Sometimes it just can't be avoided.

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 13 days ago

Great list, tips and post. Almost all can be avoided, however, the buyer's agent should be keenly aware of any possible issues during the process that might prevent closing and take action immediately. 

Posted by Kimo Jarrett, Pro Lifestyle Solutions (WikiWiki Realty) 12 days ago

Kimo Jarrett I agree, very well said. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 12 days ago

Great information and another reason why having a buyer consultation is so important.  Your blog is a great roadmap to use when working with buyers to prepare them for the buying process.  This is also excellent to share with sellers who may want to get a preinspection and even consider an appraisal ahead of time!

Posted by Shirley Coomer, Realtor, Keller Williams Realty, Phoenix Az (Keller Williams Realty Sonoran Living) 12 days ago

Another intelligently written post - thanks!    Here in CA we often order a preliminary title report when we get the listing to try to avoid losing an escrow...

Posted by M.C. Dwyer, Santa Cruz Mountains Property Specialist (Century 21 Showcase REALTORs) 12 days ago

Shirley Coomer thank you! Managing expectations is always a good thing. Granted, sometimes it's just unavoidable for a home to come back on the market but, we can always do our best to avoid it!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 12 days ago

M.C. Dwyer that's a great way to avoid losing a deal in escrow and I'm sure it has saved many from falling out!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 12 days ago

We are seeing Pre-Listing home inspections on the increase.

Know up front issues you may face. Then you can deal with them in advance or be prepared to negotiate.

It is not uncommon for an appraiser to surprise everyone with a lower appraisal. Sometimes that is just unavoidable.

Posted by John Wiley, Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA (Right Move Real Estate Group- EXP Realty) 12 days ago

I'll add-when a house flips, don't necessasrily discard it as a possibility for the buyers. Most of the time the flip happens at no fault of seller.

Posted by Mary Hutchison, SRES, ABR, Experienced Agent in Kansas City Metro area (Better Homes and Gardens Real Estate-Kansas City Homes) 11 days ago

John Wiley that's great pre-listing inspections are on the rise. It can avoid so many problems once under contract. Very true on the appraiser.

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 10 days ago

Mary Hutchison, SRES, ABR that's a great addition, I completely agree. 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 10 days ago

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