When or why might a seller list ‘Active Offer No Bump’?
Sellers may opt for the “Active Offer No Bump” status on their property listings for strategic reasons, each designed to optimize their position and sale outcome. Here are some key motivations:
1. They’re looking for backup offers, just in case: By keeping the listing active, sellers signal their openness to backup offers. This approach can keep other interested buyers in the loop and ready to step in if the original contract doesn’t close, ensuring a safety net for the seller. But this can mean discouragement for hopeful backup buyers.
2. Maintain marketing exposure and momentum: Continuing to show the property keeps the listing active and visible in the market. This strategy can be beneficial in maintaining interest among other potential buyers, especially if the seller is harboring uncertainty about the current offer going through.
3. To add muscle to ongoing or new negotiations: By accepting a satisfactory offer and then implementing a “no bump” clause, sellers can create a stable negotiating environment — both for their current buyer if things change, and potential new buyers if the current offer falls apart.
4. Control over the selling process: This status can give sellers more control. They can avoid the disruption of constant showings and negotiations, focusing on closing with the current buyer while still keeping options open.
5. Leverage in a buyer’s market: In a market where buyers have the upper hand, this strategy can help the seller maintain some leverage by showing continued interest in their property, which might encourage the current buyer to expedite the process.
How should I handle an ‘Active Offer No Bump’ listing?
Approaching a property listed as “Active Offer No Bump” requires a realistic mindset and understanding of the situation. Here are some tips for buyers on how to handle these listings:
1. Evaluate your interest level: Assess how interested you are in the property. If it’s your dream home, it might still be worth pursuing, but if you’re less attached, consider focusing your efforts on other listings that you’re more likely to capture.
2. Submit a strong backup offer: If you decide to proceed anyway, make your offer as attractive as possible. This might include offering a higher price, being flexible with closing dates, or minimizing contingencies.
3. Stay informed about the current deal: Try to learn as much as you can about the status of the current offer, such as any contingencies involved. This information can help you understand your chances and plan accordingly.
4. Be prepared for patience: Understand that the process could take longer than usual. The seller is less likely to engage with your offer until they have more certainty about the current deal.
5. Keep your options open: Continue your property search and be ready to act on other opportunities. Don’t put all your hopes on a property with an “Active Offer No Bump” status.
6. Consult your real estate agent: A knowledgeable agent can provide valuable advice and insights, especially about the likelihood of the current offer falling through and how best to position your offer.
FAQs about bump clauses
Here are some frequently asked questions to help clarify bump clauses:
What is a 72-hour bump clause?: A 72-hour bump clause is a provision in a real estate contract that allows the seller to “bump” an existing offer if they receive a new one without contingencies. The original buyer typically has 72 hours to remove their contingencies and solidify their offer, or they risk being bumped in favor of the new buyer. Other names for this clause include: escape clause, kick out clause, right of first refusal clause, or release clause — all of which can be negotiated to more or less than 72 hours.
Can I bump a contingent offer?: Yes, a contingent offer can be bumped if the sale contract includes a bump clause and the seller receives a more attractive, non-contingent offer. The original buyer will then have a specified period (like 72 hours) to remove their contingencies or their offer might be superseded by the new one.
Is a backup offer binding if the accepted offer falls through?: A backup offer becomes binding only if the original deal falls through and both the seller and the backup buyer agree to proceed with a signed agreement. Until then, it’s essentially a waiting game for the backup buyer, and they are not legally bound to purchase the property unless the primary deal collapses and they choose to move forward.
How can I make a strong offer with fewer contingencies?
It’s clear why home sellers prefer offers with few or no contingencies. One way to remove the home sale contingency — a common stumbling block for sellers — is to buy before you sell.
While most Americans need the equity and proceeds from their current home to buy their next home, modern Buy Before Your Sell programs make it easier than ever to use the equity from your current property to make a more competitive offer on the home you want.
Here’s how HomeLight Buy Before You Sell works:
