Saturday, April 1, 2023
Chuck Marunde, J.D., Broker/Owner 360-775-5424


iRealty Virtual Brokers


Broker/Consultant

Washington State

SUBSCRIBE
  • Home
  • Search MLS
    • Sequim MLS
    • Sequim MLS Map Search
    • Port Angeles MLS
    • Port Townsend MLS
    • San Juan Islands MLS
    • All Islands MLS
    • How to Search the Sequim MLS
  • Videos
    • Sequim Videos Q&A
    • Buyer Videos Part 1
    • Buyer Videos Part 2
    • Buyer Videos Part 3
    • Buyer Videos Part 4
    • Living in Sequim Video Channel
    • Flee Fee Listing Video
  • Books
    The Coming Real Estate Crash

    The Coming Real Estate Crash

    The Sequim Real Estate Trilogy

    The Sequim Real Estate Trilogy

    Sequim Real Estate Videos for Buyers: The Ultimate Video Guide for Sequim Washington

    Sequim Real Estate Videos for Buyers: The Ultimate Video Guide for Sequim Washington

    Escaping California to the San Juan Islands

    Escaping California to the San Juan Islands

    Get Healthy

    Get Healthy: Increase Natural Immunities, Cellular Energy, Deep Sleep & Decrease Blood Pressure

    Manage Your Energy

    Manage Your Energy Not Your Time

    Real Estate Brokerage From Bricks and Mortar to High Tech Virtuality

    Real Estate Brokerage From Bricks and Mortar to High Tech Virtuality

    7 Myths of Selling Your Home

    7 Myths of Selling Your Home

    Buying Your Retirement Home

    Buying Your Retirement Home

    The New World of Marketing for Real Estate Agents

    The New World of Marketing for Real Estate Agents

    Sequim Real Estate For Buyers: Free eBook Updates Forever

    Sequim Real Estate For Buyers: Free eBook Updates Forever

    24 Secrets of Buying a Country Home

    24 Secrets of Buying a Country Home

    Sequim Real Estate: A Buyer’s Guide

    Sequim Real Estate: A Buyer’s Guide

    Living Off The Grid iin Alaska

    Living Off The Grid in Alaska

    Buying and Selling Real Estate

    Buying and Selling Real Estate

    Trending Tags

      • Sequim Real Estate for Buyers (Free eBook Updates Forever)
      • Sequim Real Estate: A Buyer’s Guide (Paperback)
      • Escaping California to The San Juan Islands
      • Buying & Selling Real Estate in The Rain Shadow
      • Real Estate From Bricks & Mortar to High Tech Virtuality
      • The Seven Myths of Selling Your Home
      • Buying Your Retirement Home
      • The New World of Marketing for Real Estate Agents
    • Agents
      Marunde Google

      Chuck Marunde on Google

      Flat Fee Listing Broker

      Flat Fee Listing Broker

      Buyers Agent Chuck Marunde

      Buyer’s Agent Chuck Marunde

      Trending Tags

        • Buyers Agent Chuck Marunde
        • Flat Fee Listing Broker
        • Google Profile & Leave Reviews
      Tetralogy
      No Result
      View All Result
      • Login
      • Register
      • Home
      • Search MLS
        • Sequim MLS
        • Sequim MLS Map Search
        • Port Angeles MLS
        • Port Townsend MLS
        • San Juan Islands MLS
        • All Islands MLS
        • How to Search the Sequim MLS
      • Videos
        • Sequim Videos Q&A
        • Buyer Videos Part 1
        • Buyer Videos Part 2
        • Buyer Videos Part 3
        • Buyer Videos Part 4
        • Living in Sequim Video Channel
        • Flee Fee Listing Video
      • Books
        The Coming Real Estate Crash

        The Coming Real Estate Crash

        The Sequim Real Estate Trilogy

        The Sequim Real Estate Trilogy

        Sequim Real Estate Videos for Buyers: The Ultimate Video Guide for Sequim Washington

        Sequim Real Estate Videos for Buyers: The Ultimate Video Guide for Sequim Washington

        Escaping California to the San Juan Islands

        Escaping California to the San Juan Islands

        Get Healthy

        Get Healthy: Increase Natural Immunities, Cellular Energy, Deep Sleep & Decrease Blood Pressure

        Manage Your Energy

        Manage Your Energy Not Your Time

        Real Estate Brokerage From Bricks and Mortar to High Tech Virtuality

        Real Estate Brokerage From Bricks and Mortar to High Tech Virtuality

        7 Myths of Selling Your Home

        7 Myths of Selling Your Home

        Buying Your Retirement Home

        Buying Your Retirement Home

        The New World of Marketing for Real Estate Agents

        The New World of Marketing for Real Estate Agents

        Sequim Real Estate For Buyers: Free eBook Updates Forever

        Sequim Real Estate For Buyers: Free eBook Updates Forever

        24 Secrets of Buying a Country Home

        24 Secrets of Buying a Country Home

        Sequim Real Estate: A Buyer’s Guide

        Sequim Real Estate: A Buyer’s Guide

        Living Off The Grid iin Alaska

        Living Off The Grid in Alaska

        Buying and Selling Real Estate

        Buying and Selling Real Estate

        Trending Tags

          • Sequim Real Estate for Buyers (Free eBook Updates Forever)
          • Sequim Real Estate: A Buyer’s Guide (Paperback)
          • Escaping California to The San Juan Islands
          • Buying & Selling Real Estate in The Rain Shadow
          • Real Estate From Bricks & Mortar to High Tech Virtuality
          • The Seven Myths of Selling Your Home
          • Buying Your Retirement Home
          • The New World of Marketing for Real Estate Agents
        • Agents
          Marunde Google

          Chuck Marunde on Google

          Flat Fee Listing Broker

          Flat Fee Listing Broker

          Buyers Agent Chuck Marunde

          Buyer’s Agent Chuck Marunde

          Trending Tags

            • Buyers Agent Chuck Marunde
            • Flat Fee Listing Broker
            • Google Profile & Leave Reviews
          No Result
          View All Result
          iRealty Virtual Brokers
          No Result
          View All Result
          Home Sequim Homes For Sale

          What is a Contingent Offer with a Bump Clause?

          Chuck Marunde by Chuck Marunde
          September 4, 2011
          Reading Time: 4 mins read
          0 0
          1

          A contingent offer with a bump clause is an offer which is contingent on the buyer being able to sell their own home  before they can close on the home they are writing the offer on.  The bump refers to the fact that another buyer could come along with no such contingency and bump that buyer.  If you are a buyer and you want to write an offer on a home subject to the sale of your own home, you may wonder if a seller would accept your contingent offer.

          Contingent Offer

          Contingent Offer

          Here is a conversation that an agent may have with their listing client (the seller) about such an contingent offer.  This conversation is a good explanation for both buyers and sellers.

          Agent:  I have an offer on your home at full price, but it is a contingent offer, contingent on the sale of the buyer’s home.

          Contingent Offer – So is my home sold?

          Seller:  So does this mean my home is sold?

          Agent:  Maybe.  Maybe not.  It is sold if the buyer sells their home within 60 days.

          Seller:  Well, I’ve had my home on the market for over a year.  What is the likelihood of the buyer selling their home quickly when I couldn’t and when so many homes are not selling in this market? 

          Agent:  Good question.  The probability of this buyer selling their home in this market depends on a number of factors.  First, they have to find the right buyer for that property, and as we both know, there are not very many buyers these days, especially above the bell curve of homes selling in the range of $200,000 to $250,000.  That is where most buyers are these days.  Homes above $300,000 are selling less.  Second, assuming the seller’s agent has a good marketing system, and assuming they connect with the right buyer who loves their property and is qualified to buy it, their home will sell.  Well, that brings me to the third factor.  Their home will only sell if it is reasonably priced and they are willing to negotiate and reach mutual acceptance with a buyer.  But no one can say with any certainty if and when that will all happen for this buyer.  And then there is a fourth variable I should mention.  Some homes are ready for the buyer to move in.  There’s nothing to do and the home has been well maintained.  But many buyers will look at a home and say that it will require $20,000 to $50,000 worth of work to remodel part of the house.  Most sellers don’t deduct that from the listing price, which means the house is overpriced from the buyer’s perspective.  The seller doesn’t think it is overpriced, because they are not marking down the listing price for remodeling.  All of these factors make a contingent offer hard for sellers to accept.

          Seller:  So it sounds like your saying that a contingent offer, contingent on the buyer selling their home in a very short period of time in this real estate recession to a unique buyer who is financially qualified is a very low probability.

          Agent:  That’s . . . [agent wriggles in his chair] . . . probably a fair assessment.

          Seller:  If I accepted such a contingent offer, which sounds like no offer at all to me, would my house be off the market?  Would I miss out on other qualified buyers?

          Agent:  Yes and no, but mostly no.  You’re home wouldn’t technically be off the market, but you could miss out on buyers.  Let me explain.  The MLS would show your home as pending or “active under contract,” but “with a bump clause.”  So anyone searching the MLS for active listings that are not pending or not under contract would not find your home.  But if they widened their search to include all pending transactions, they would see it.  The challenge is that most buyers are only interested in looking at homes that are not in any kind of pending status.  However, if someone did the broader search and found your home, and they fell in love with it and were qualified, they could make an offer and bump the other offer, except that if the other buyer wanted to suddenly waive all contingencies and close, they could, which is another reason why buyers don’t waste time looking at pending transactions with a bump clause.  Even if they find one, they could bump the other buyer, but they could get bumped.  So you could lose out on buyers.

          Seller:  So tell me again.  Why would I accept this kind of contingent offer?

          Agent:  Because there are no other offers on the table.

          Seller:  I’m not convinced.  Tell you what.  When you have a real buyer, come and see me.  I don’t want to miss valuable market time in the best selling months of the year, and I don’t want my house tied up in an “iffy” situation.  I just want to sell my home.  Please tell the other agent I appreciate he effort, but I can’t accept an open-ended contingency.

          Contingent Offer – Not So Cool

          Now you know what a contingent offer with a bump clause is all about.

          Last Updated on September 4, 2011 by Chuck Marunde

          Tags: contingent offer
          ShareTweet
          Chuck Marunde

          Chuck Marunde

          Chuck grew up in remote Alaska, graduated from the University of Alaska with a degree in Economics and Teacher Certification, and after teaching high school for two years, went to law school at Gonzaga University in Spokane, Washington. He served four years as a Captain and JAG in the USAF at Nellis AFB in Las Vegas. After practicing real estate law for 20 years in Washington, Chuck founded iRealty Virtual Brokers covering Sequim and the beautiful Olympic Peninsula. He is the author of 2,200 real estate articles and a dozen real estate books, and he produced over 100 real estate videos. Chuck combined his love for real estate and technology to create a massive Internet presence, and his articles and videos and books have been viewed by millions. Chuck is a well recognized real estate expert and his counsel is sought by other brokers and practicing attorneys around the country. Buyers from New York to Hawaii and from Florida to Alaska seek him out to retain him as their buyer's agent, and home owners around the State of Washington seek him out because of his new Flat Fee Listing Service. 

          Related Posts

          Homes Sold in Sequim
          Sequim Homes For Sale

          Sequim Homes: Pending and Sold

          January 23, 2021
          48
          The Perfect Home
          Sequim Homes For Sale

          What if I Lose Out On The Perfect Home?

          August 19, 2020
          6
          Sequim Homes
          Sequim Homes For Sale

          Sequim Homes Selling Fast and Very Fast

          June 28, 2020
          7
          Home Shortage in Sequim
          Sequim Homes For Sale

          Home Shortage in Sequim

          July 13, 2019
          2
          Backup Offer
          Buyers

          Should I Submit a Backup Offer on a Pending Transaction?

          March 8, 2019
          49
          Sequim Homes For Sale

          The Sequim Bell Curve: Sequim Homes Hard to Find

          June 20, 2018
          3
          Next Post

          Port Angeles Water View Home Sold

          Sequim Real Estate Auctions

          Comments 1

          1. Tanya says:
            5 years ago

            Wonderful blog! Do you have any tips for aspiring writers? I’m planning to start my own blog soon but I’m a little lost on everything. Would you advise starting with a free platform like WordPress or go for a paid option? There are so many options out there that I’m totally overwhelmed .. Any ideas?
            Kudos!

            Reply

          Leave a Reply Cancel reply

          Your email address will not be published. Required fields are marked *

          I agree to the Terms & Conditions and Privacy Policy.

          This site uses Akismet to reduce spam. Learn how your comment data is processed.

          "I wish I read this before selling my
          home. I could have saved $50,000." Andy 

          Search 2,200 Articles by Category

          • Trending
          • Comments
          • Latest
          Buyer and Seller

          What if a Buyer and Seller Talk to Each Other?

          August 5, 2022
          Prorate Propane

          How to Prorate Propane at Closing

          August 15, 2015
          Terminate a real estate contract

          How to Terminate a Real Estate Contract

          December 31, 2020

          The Sequim Blue Hole – A Map of Rainfall

          September 1, 2019
          print newspapers

          Print Newspapers Losing Readers to the Internet

          42
          Buyer and Seller

          What if a Buyer and Seller Talk to Each Other?

          32
          FNMA Killing Transactions by Requiring Private Road Maintenance Agreements

          FNMA Killing Transactions by Requiring Private Road Maintenance Agreements

          31

          What Documents Does a Buyer Need to Buy Real Estate?

          24
          Bidding for Listings

          Are Listing Brokers Bidding for Listings?

          March 29, 2023
          home title theft

          Is Home Title Fraud Real or is it a Fraud?

          March 27, 2023
          Sequim Real Estate Maps and Docs

          Sequim Real Estate Maps and Documents

          February 6, 2023
          Flat Fee Listing Service

          Sellers Chase the Market Down Once Again (UPDATED)

          March 22, 2023

          Subscribe to Chuck 
          Marunde's Newsletter

          Popular Stories

          • Buyer and Seller

            What if a Buyer and Seller Talk to Each Other?

            0 shares
            Share 0 Tweet 0
          • How to Prorate Propane at Closing

            0 shares
            Share 0 Tweet 0
          • How to Terminate a Real Estate Contract

            0 shares
            Share 0 Tweet 0
          • The Sequim Blue Hole – A Map of Rainfall

            0 shares
            Share 0 Tweet 0
          • Dangers of Buying a Fannie Mae Foreclosure Through Homepath

            0 shares
            Share 0 Tweet 0

          Leaving Comments   I hope you’ll join our community and leave comments from time to time. Please realize that comments, if approved, will be public, so do not use any personal information you don’t want broadcast to the world, and definitely don’t leave a phone number. Comments are not the place to ask Chuck Marunde for help in finding a home. To do that, call or text Chuck.

          Neither Chuck Marunde nor iRealty Virtual Brokers offers legal advice on this site. Please Read Our Legal Disclaimer

          If you’d like to view how we protect your privacy, see our Privacy Policy.

          iRealty Virtual Brokers

          iRealty Virtual Brokers reaches out to buyers around the United States with thousands of online articles, MLS sites, apps, real estate books, videos, and much more specifically to help buyers find all the answers to their questions. We also now offer a flat fee commission listing service that saves sellers tens of thousands of dollars.

          iRealty Virtual Brokers
          125 Olympic Ranch Ln
          Sequim, Washington 98382
          360-775-5424

          Search the entire NWMLS in Washington State:

          Sequim-Homes.com

          The largest independent real estate blog in the State of Washington with over 2,200 articles totally focused on our client’s best interest, their needs and their curiosity. All free and 100% reliable. I’m here if you need me, 

          © 2006-2022 iRealty Virtual Brokers and Chuck Marunde

          No Result
          View All Result
          • Home
          • Search MLS
            • Sequim MLS
            • Sequim MLS Map Search
            • Port Angeles MLS
            • Port Townsend MLS
            • San Juan Islands MLS
            • All Islands MLS
            • How to Search the Sequim MLS
          • Videos
            • Sequim Videos Q&A
            • Buyer Videos Part 1
            • Buyer Videos Part 2
            • Buyer Videos Part 3
            • Buyer Videos Part 4
            • Living in Sequim Video Channel
            • Flee Fee Listing Video
          • Books
            • Sequim Real Estate for Buyers (Free eBook Updates Forever)
            • Sequim Real Estate: A Buyer’s Guide (Paperback)
            • Escaping California to The San Juan Islands
            • Buying & Selling Real Estate in The Rain Shadow
            • Real Estate From Bricks & Mortar to High Tech Virtuality
            • The Seven Myths of Selling Your Home
            • Buying Your Retirement Home
            • The New World of Marketing for Real Estate Agents
          • Agents
            • Buyers Agent Chuck Marunde
            • Flat Fee Listing Broker
            • Google Profile & Leave Reviews
          • Login
          • Sign Up

          © 2006-2022 iRealty Virtual Brokers and Chuck Marunde

          Welcome Back!

          Login to your account below

          Forgotten Password? Sign Up

          Create New Account!

          Fill the forms bellow to register

          *By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
          All fields are required. Log In

          Retrieve your password

          Please enter your username or email address to reset your password.

          Log In
          This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.