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“Bump clauses” can bring better prices

July 16, 2018 By Geoffrey Disch Leave a Comment

Market News

According to real estate agents, home sellers are adding “bump clauses” to their real estate transaction contracts as a method of getting the possible offer on their homes.

Often used when there is a contingency, a “bump clause” allows sellers to enter into a contract with a potential buyer but still market their property. If a better offer materializes, the seller can tell the original buyers to “bump” up their offer or waive the contingency.

Sellers often use this practice to get other interested parties to make a higher bid without contingencies.

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Filed Under: Real Estate Tagged With: bump clauses

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