Homes are priced below the contracted price and, when they do, a few things can happen. The seller may reduce the contracted price to the appraised price. The buyer can provide additional funds to cover the deficit. The buyer and seller may be somewhere in between.
A terrible home inspection is the number one reason a home is coming back on the market. A home inspection will analyze all the major components of a home to identify any problem areas. Under current market conditions, inventory is often scarce and finding a good deal can be difficult. Every time a buyer discovers a special circumstance, the opportunity to make a deal is born.
Why are houses coming back on the market? For many reasons, and almost all of them, they imply greater motivation for the seller and a possible opportunity for a buyer willing to go on strike. The relationship between home prices and rents in many metropolitan areas is now as high as it has been since the housing bubble, but it has exploded during the pandemic, partly because rents have fallen, not just because prices have skyrocketed. Even before the pandemic, real estate agents and economists were concerned about the shortage of inventory, which had been trending downward since the fall in housing. I suspect that there were invisible bidders who wanted to keep the contract and, since the houses were rubbish, the bids were immediately withdrawn.
If your current home isn't selling for some reason and there are so many reasons why a home might not sell, all the work the seller did with the buyer is in vain. Who knows, the house could be a complete garbage dump in person (it looks incredible on the Internet) and that will give me a clue, but my suspicion right now is a combination of inspection negotiations that intensified and the sellers simply decided if they were going to wait for another property to be sold, they didn't want to have to wait with buyers who were not being reasonable about their own inspection. The housing crisis decimated the home construction industry and pushed many construction workers to other jobs. We ended up fixing the discrepancies and it took about a month for the house to come back on the market.
I offered the full price with no need for inspection time, since I had already seen the inspection and I am glad I bought the house. Of course, there are ways to prevent homes from returning to the market due to home inspection issues. This reluctance can take on a life of its own in a tight market, said Ralph McLaughlin, chief economist at Haus, a startup housing finance company. When rents and home prices start to diverge, it's often a sign that something isn't right, such as a housing bubble that is inflating.
In the run-up to the housing crisis, home prices rose much faster than rents, meaning that many homes were being sold at prices that homeowners couldn't afford if they had to rent them. Just because a home returns to the market after an inspection doesn't always mean it was related to the inspection. The air conditioner was practically off, the furnace chimney had a crack that would leak carbon monoxide into the house. Sometimes, buyers back out because they think the real estate market will fall soon and think they're going to overpay.
