Contingent Offers/ "Bumpable"-Should You Do It?
Admit it, you've searched those mega-giant internet sites etc. just to see what your home might be worth today so you could find another dream home. In Clark County WA March 2018, there were only 1.2 months of single family homes to sell..that's a Seller's Market.... Buyer's Market has 6 months of homes to sell. (Sellers....Over list price and multiple offers happen!)
There are lots of would-be sellers out there that would love to put an offer on your house but they are afraid to make a move because they have their own house to sell first. That's why so many contingent offers are popping up. (Just checking our local Clark County WA RMLS on today, April 17, 2018...there are 1106 homes for sale, 1341 pending, plus 33 contingency/bumpable offers.)
Should you accept a contingent offer in this SW Washington area? In this "lack of inventory" market...contingent offers may be something for you to consider.
Bumpable....Here's an Advantage to You as Seller:
Contingent offer means...accepting an offer from a buyer that currently has a house to sell. IF you decide to accept their offer it means YOUR house will stay available on the market to buyer/shoppers. But it will not be listed or showing "Active" but titled as "Bumpable." Congratulations! This means other Buyers can still make a better offer and bump the buyer in position if you accept their offer. It's all good for you, the seller.
Bumpable for the Buyer...A Little More Challenging
Bumpable does have some tripping points, such as in order to bump a current in-first-position buyer...the new buyer must usually make a better offer and then wait a negotiated pre-determined amount of time to bump the first offer. If that time period ends before the first-in-position buyer can come up with the cash or the loan approval to move forward...then the back-up buyers bump the first buyer and then steps into first place. It happens.
PS...Just a Side note about terms used:
Here in Clark County WA, after a offer is mutually signed by sellers and buyers, it goes straight to the title "Pending." I've noticed that in other states in the U.S....the mutually agreed upon contracts make that home "Contingent" until the financing, inspection, appraisal, HOA, etc. are past. Then those Contingent homes go "Pending." That's not how we describe them here. They are simply Pending after mutual acceptance with pre-determined and negotiated time limits for each contingency are past.
We can make an offer even if you have a home to sell!