Bumpable Listing? What does it mean in Washington?

By
Real Estate Broker/Owner with ViewHomes of Clark County - Nature As Neighbors

What does the Bumpable ( BMP) Status Mean in Washington State?

No Bumpable Please

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. 

 

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ViewHomes™ grew out of our passion for nature, beautiful surroundings, and peaceful environments. Starting together in an urban environment, over the years we've gravitated towards areas with smaller populations and less density. We now enjoy our lifestyle in a rural environment, but with close proximity to metropolitan areas where we appreciate all the amenities of fine restaurants, shopping, and an easy drive to an international airport.
Living in ViewHomes™ is like having “elbowroom for the soul”.

 

360-608-4900 

info@natureasneighbors.com
 

                                                                             

 

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Topic:
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Washington Clark County Camas
Groups:
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Posts to Localism
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Pacific Northwest Real Estate
Bananatude
Tags:
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Rainmaker
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Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Which is why you do what you do and I do what I do....they either buy the furniture or they don't.....end of story.

Oct 20, 2014 11:31 PM #2
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John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Hi Debb.  I had not heard the term "Bumpable" before.  We just call it 24 hours right of refusal.  I don't encourage these types of offers on either end of the deal.

The mic came. It's a beast!  Can't wait to make the next YouTube and see what a difference it makes on voice overs.

Oct 21, 2014 12:00 AM #3
Rainmaker
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Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Debb Janes Glad to hear the explanation of bumpable. We have similar process here with a different name. 

Oct 21, 2014 12:12 AM #4
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Debb - We have essentially the same thing here - Active/First Right. We proceed as you do in advising our sellers - in the more active price ranges, it often doesn't make a lot of sense to accept a contract contingent on a sale - our sellers then have to worry about two sales rather than one. And we'll usually show those homes, since the majority of in place contingent buyers can't remove those contingencies.

Oct 21, 2014 01:52 AM #5
Rainmaker
1,778,175
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Hi Debb -- we use the term, "kick-out clause" instead of bumpable. Real estate practice really is local.

Oct 21, 2014 02:01 AM #6
Rainmaker
2,019,206
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

Bumpable - that's new one on me Debbie! We use kick-out clause in TX too.

 

Oct 21, 2014 02:28 AM #7
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Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-755-2905

Debb, I find nothing wrong with bumpable offers, so long as the buyer is clearly aware of timelines and that the seller has the opportunity to ditch the bumpable buyer's offer and go for something better. In vacation home situations, sometimes the urgency isn't there, or they've had no other offers, or or or...many variables, as always in real estate! Once again, protecting your client for what's best for them and using good communication skills are what makes it a successful relationship and hopefully a SOLD partnership! 

Oct 21, 2014 02:53 AM #8
Rainmaker
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Debb,

We once knew a couple whose last name was Bumpus!  We had that kind of clause in commercial real estate, we did not call it bumpable.  I like the name.  A

Oct 21, 2014 05:55 AM #9
Rainmaker
1,071,965
Sharon Lee
Sharon Lee's Virtual Assistance - Jonesborough, TN
Retired and loving life

Well Debb-I learned something new today because I did not know that. Thank you for teaching me something new

Oct 21, 2014 06:53 AM #10
Rainmaker
2,302,947
Anita Clark
ColdwellBanker SSK Realtors ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

Debb: That is not a term I have heard before. We call it a contingent offer here in middle GA.

Oct 21, 2014 09:40 AM #11
Rainmaker
1,675,376
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

Hi Debb, I am with you on this. They shuld have thier financing already in place before putting in an offer.  I also had not heard the term before in Indiana.

Oct 21, 2014 10:02 AM #12
Rainmaker
774,028
Joanna Cohlan
Fresh Eyes For Your Home - Chappaqua, NY
Designing, Decorating & Staging Westchester Homes

Debb, I have never heard of this term but in New York, homes are often sold with a contingency in the contract - so the offer has been accepted already - if the buyer needs to sell something.  Thanks for enlightening us to this term!

Oct 21, 2014 11:42 AM #13
Rainmaker
4,082,216
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Debb, interesting terminology.   We do not have this status, but use "back-up accepted" when the contract looks like it could fall. 

Oct 21, 2014 10:52 PM #14
Rainmaker
985,918
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

For a Washougal, Washington EcoBroker call Debb Janes at (360) 210-5526 today.

Oct 22, 2014 12:06 AM #15
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Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Hi Debb, I have never heard of a Bumpable Listing or the terms that go with it. We do not have anything like that in Illinois, thanks for sharing. It is worthwhile to educate ourselves on all the different scenarios.

Oct 23, 2014 04:18 AM #16
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Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

Debb Janes  The word contingent almost dropped out of my vocabulary until recently. They had disappeared but I see them as I do market research now all the time!

Oct 23, 2014 04:36 AM #17
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Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

In Tennessee, all our listings remain in active (to the public only) until all contingencies are met. I hate that. You can't imagine how upset people get who think they've found their dream home only to learn that it's already sold.

Oct 23, 2014 01:53 PM #18
Rainmaker
739,269
Kimo Stowell
HI Pro Realty LLC RB-21531 - Honolulu, HI
REALTOR Associate® RS-76763 - Honolulu Hawai'i

Aloha Debb,

With inventory tight, we often accept "back-up" offers, especially with certain waterfront condos and popular residential complexes. It sounds like your "bump" gives the buyer an additional out and If the initial offer is contingent on the buyer attaining a mortgage, a "bump" to a cash offer will give the seller a good nights rest if the money down isn't particularly attractive from the lenders point of view.

peace,

Oct 23, 2014 02:52 PM #19
Rainmaker
3,132,182
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

I had to chuckle at rogers comment above...boy, wouldn't that be nice?  :-)

Oct 24, 2014 01:19 AM #20
Rainmaker
535,574
Melinda (Mel) Peterson
Real Estate Cafe LLC - Bend, OR
Curator of Happy Endings

Bumpable... thank goodness it's an MLS thing and not a relationship status.  Winkety wink my friend  

Oct 26, 2014 05:05 AM #21
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