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What is a real estate bump clause?
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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.
- 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...
Jun 15, 2023 · A bumpable offer, or bump clause, is a buyer's offer that's only good if a specific condition is met. It allows the seller the option to entertain other (better) offers. “Usually, people make bumpable offers on a home because they can't buy it until their old home sells,' says Sarita Dua of Keller Williams Realty Professionals in Portland ...
What is a bump clause in real estate? Definition of Bump Clause. If a buyer's offer contains a condition or a contingency, such as the sale of the buyer's existing home, a bump clause allows the seller to accept the offer but continue receiving offers from other prospective buyers.
Aug 4, 2024 · A bump clause is a type of contingency clause that allows the buyer to increase the purchase price of the property based on new information or changes in market conditions.
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.
Jan 19, 2021 · What is a Bump Clause? A bump clause allows sellers to enter into a contract with a buyer but continue to market the property. If the seller then receives a better offer, they can bump the original buyer to get them to waive their contingency or offer more.
