What does the Bumpable ( BMP) Status Mean in Washington State?
I recently wrote a market report for one of our many attractive Camas, WA neighborhoods. In the sales activity, I made note of one home in Bumpable status. One of my peers in the Rain questioned its meaning. It occurs to me that maybe you too are puzzled as to what the status means for a real estate listing.
We have various categories to show a home's availability:
Active - Available. Show home following the listed instructions.
Pending - Currently under contract, it can't be shown without special permission from seller or list agent.
Short Sale Pending - Short sale under contract with a seller accepted offer, but still pending approval from third party.
Bumpable - The home is available for showing and the seller will consider your offer. However, the buyer of the current accepted offer has 24-72 hours to remove their contingency (if they can).
Why would a listing agent encourage sellers to accept an uncertain offer?
Some sellers wonder when, and why, it makes sense to use the BMP ( bump status). Certainly, there are some buyers ( and agents) who avoid those listing as they don't want to be disappointed if the current buyers are able to perform ( drop the contingency, and proceed to closing). Some listing agents will use this BMP to allow a buyer to get their financing approved, or a funds letter for a cash offer. In my opinion, serious buyers should already have those in place. Therefore, I would NOT use the BMP as a listing agent in this scenario.
Most of the time, the Bumpable status is used to allow the buyer(s) to sell their current property. In other words, the offer is contingent upon the sale of the buyer's current home. The only time it makes sense to accept an offer, but keep it in BMP mode, is to keep a viable deal on the table when there are no other offers. "Viable," is the critical component here. IF, I was confident the buyers home was in top condition, priced right, and that properties in the area were moving quickly, I'd likely advise the sellers to seriously consider accepting the offer. Naturally, the sellers can still accept other offers during this time period, however, the current buyers have the right to remove their contingency if possible. Once that is done, the status changes from Bumpable to Pending. And hopefully, soon after, SOLD!
In the current market in Camas, WA, if a home is in good condition, priced well, and marketed properly, it's going to sell in a timely manner. Therefore, as a listing agent, it would be difficult for me to advice a seller to accept an offer contingent upon the sale of another home. Why narrow the pool of ready, willing, and available buyers by accepting an "iffy" offer? Exactly.