There is not ONE answer to this question...and sometimes not ONE you can give at all as a listing agent.
In Wisconsin...there are 3 reasons a home may appear back on the market. The first is Financing. While a pre approval
may have been required (certainly should be) by the listing agent....the Loan Officer/Financial institution may not have done their due diligence.....and as a result the borrower does not qualify for the mortgage. Can this be fixed ? Maybe... In Wisconsin...part of the financing contingency states not only the loan amount and maximum interest rate...but also the KIND of loan. For example if the offer to purchase is written with conventional financing and the Buyer is found not to qualify ....BUT may qualify for an adjustable rate....but doesn't WANT an adjustable rate...that can get him/her/them out of the contract with earnest money refunded. This can happen later in the contract should the buyer for example...lose a job...swing their debt to income pendulum by furnishing the whole house, buying a new vehichle, replacing every appliance...before the loan closes.
If an inspection has been done on a property and the Sellers chose not to repair/replace a defect they must amend the real estate condition report to let future buyers know of the problem that was discovered by an earlier inspector.If the defect is serious....the Buyer can cancel the contract.
The last reason is appraisal....most offers in our experience especially now in the days of escalation clauses....have an appraisal contingency...the Buyer has an out if the property does not appraise for the amount that they wrote in the offer to purchase.
When an Agent questions...WHY is a property back on the market....and a condition report has not been changed...the most professional answer by a listing agent is "it was NOT due to an inspection". The Selling agent may make whatever assumptions they wish...ethically, we don't believe revealing anyone else's financial condition is a good practice for any agent.
This has been a professional real estate post brought to you by Sally K. & David L.Hanson, Broker Associates with Keller Williams honored to be representing Sellers and Buyers in southeastern Wisconsin.