Real Estate BOM 101: Definition & Meaning Of BOM In Real Estate

It is not difficult to put a house BOM. You can request your real estate agent to put your house BOM, and they will know the steps to take. 

The steps that follow usually fall under two categories:

1. An accepted offer fell through. If you decide to put your home BOM because an earlier accepted offer fell through, it might not be necessary to change your listing’s status. Most MLS systems have three primary listing statuses: active, in contract, and sold. If your MLS has different listing status, you need to inform your agent to change it back into active status.
2. A signed contract fell through. You need to inform your real estate agent to change the listing status from “in-contract” to “active” if the deal fell through while in the contract. This will trigger a notification on many people’s automatic search alerts.

In both cases, it would be better if your agent added BOM at the beginning of the listing description, probably in capital letters, to let people know why it has not yet sold.

All real estate agents intend to have their listings move from active to active, continued and pending to sold without any issues. However, no amount of preparation can prevent an occasional deal from falling out of escrow—a deal whereby an impartial third party gains possession of funds related to a real estate transaction until a particular situation is achieved- and appears as BOM in the MLS.

There are reasons agents and sellers mind if their contracts fall out of escrow. They include:

• Days the property remains on the market are remarkably noted in MLS listings. Homes are more attractive if they are new in the market. The buyers and sellers expect a preferable home to be in contract or sold in less than two weeks of listing. If there is a lack of interest or chatter between the buyers about making an offer after two weeks, many agents suggest that the seller lower the price. Buyers expect a price reduction between 15 and 30 days on the market.
• When a house falls out of escrow and is categorized as BOM in the MLS, the counting of days on the market will not revert to 0. Buyers will assume there is a price reduction if the marketing period extends. Such a situation is not ideal for the seller.
• A home that falls out of escrow and is listed as BOM will raise some questions from the buyer. They will want to know what went wrong, if the house has an issue, or if the price will be reduced. In the end, some buyers can not let go of their worries. This means potential buyers will decrease, which is not good news for the seller because the price will have to decrease.
• A home not showing in the listing for a week will generally be ignored because buyers are more interested in the new listings in the market.

You should be aware that any discoveries about the house during escrow should be disclosed to future buyers. On such an occasion, the seller’s agent should not advertise no fault of the property.

Nowadays, there is an increase in the number of buyers while the number of houses listed for sale is not increasing. Therefore, fewer homes are falling out of escrow. Buyers are not easily changing their minds for fear of missing out on a good deal. This means the listing of houses as BOM is not rampant.

A new feature on most real estate search engines that bookmarks and saves homes makes it easier to follow them through the escrow process. In this way, buyers are alerted when they receive electronic notifications whenever a home falls out of escrow and is BOM. They can follow up and find a home at a reduced price.    

Selling a house as-is that is BOM is not easy, and there are high chances that you will be forced to sell at a slightly lower price. 

To avoid this, you can sell your house to a real estate company that buy houses fast for cash like We Buy Houses In Denver. 

Dealing with us will make the selling process faster and smoother throughout Denver, from Belmar to Highlands Ranch, Montbello to Golden. In fact we will buy your house anywhere in Colorado.