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- The 48-hour bump clause. This clause allows the original buyer a period of 48 hours to waive the contingency or increase their bid on the property. If the buyer does not meet the time frame stated on the contract, the seller is free to move on to a second offer.
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Sep 11, 2013 · When listing your property for sale you will often receive an offer that is conditional upon the buyer satisfying certain conditions before the deal becomes firm and binding. As a seller, this means that while you have accepted an offer, you do not yet have a firm and binding offer.
- How A Bump Clause Works
- Other Bump Clause Terminology You Need to Know
- Advantages of Bump Clauses For Sellers
- Advantages of Bump Clauses For Buyers
- Are There Any Downsides to Bump Clauses?
Unless it is their first home, most buyers need to sell their current home before purchasing a new one. In these cases, the buyer makes an offer with a contingency that they sell the other home first. If the seller accepts the bid and enters into a contract without a bump clause, the seller has to take the home off the market. No other bids will be...
Here are some other terms you need to know when dealing with bump clauses in real estate transactions. The no-bump bump offer-- A no-bump contract is just like it sounds. If the seller accepts an agreement with this wording, they cannot back out if a better offer comes along. The seller must take the home off the market and proceed with the sale. T...
Many real estate experts describe a bump clause as a kind of security blanket for home sellers. The main advantage of a bump clause is that it allows a seller to continue listing the home throughout the contingency period. The seller may get a cash offer or one without any contingencies. However, in a cooling housing market, a better bid may not ma...
Most home buyers cannot secure financing for a second home prior to selling their current one. But waiting to shop for a new home until your current one sells can be awkward at best. The bump clause is a good solution in a cool seller’s market. Also, a bump clause may help convince a seller with an unrealistic home listing price to accept a reasona...
Sellers with bump clauses should be careful about jumping into a second “better” offer. After all, bigger isn’t always better. Ensure that the second buyer has good credit and mortgage pre-approval, or else you could be bumping a solid buyer for a less-qualified one. Another potential problem is that some qualified buyers will stay away from contra...
Nov 15, 2023 · The bump clause, also known as the "kick-out clause," is a real estate contract provision allowing the seller to continue marketing the property even after accepting a contingent offer. This contingent offer typically arises when the original buyer makes an offer on the seller's property.
Feb 12, 2024 · A real estate bump clause lets sellers enter into a contract with a potential buyer while reserving the right to continue marketing their property. If the seller gets a better offer, either more money or fewer contingencies, they’re allowed to “bump” the first buyer.
48 Hour Notices on Real Estate Offers. Sometimes sellers receive an offer from someone with the condition that they they must sell their existing home by a certain date. They may wonder if they should to using a 48 hour clause saying that they accept the offer but can give the buyers notice to remove their conditions within 48 hours of ...
Oct 14, 2019 · What that means is that if there was a 48-hour bump clause, Buyer #1 has 48 hours from time of notification (of the 2nd accepted offer), to either get their home under contract, or to...
Jan 6, 2021 · To protect yourself as a seller, you can include a “bump” clause in the contract to obtain some leverage in the sale. You would state a specified amount of time after receiving another offer for the first buyer to decide whether they want to pursue the contract.
