How a “Bump” Clause Works Against Columbus Home Buyers - Columbus Ohio Real Estate | Buyer's Resource Realty Services

How a “Bump” Clause Works Against Columbus Home Buyers

Bump clauseColumbus home buyers who have a current home to sell, or other contingency, can find themselves out of a deal if there is a “bump” or “escape” clause in the purchase contract. The bump clause allows the seller to continue to market the property and invite new offers while under contract with the first buyer with the contingency.

Under the bump clause, if the seller receives a new offer they like better, the first buyer must drop their contingency, or top the new offer, etc. The first buyer may have a very short period to respond to this situation, anywhere from 24 to 72 hours.

If the first buyer is unable to remove their escape contingency, they receive their earnest money back, when using our custom Purchase Contract. Unfortunately, the first buyer has already spent a great deal of time, energy, and possibly money, and now they have nothing to show for it.

Bump clauses are most commonly used by sellers when the buyer’s offer is contingent upon the sale of a current home. Since there are no guarantees that the buyer’s current home will sell quickly, or for the needed price, a bump clause prevents the seller from being trapped in a deal that may not perform timely.

However, bump clauses have become an easy out for sellers who hope to avoid dealing with any type of buyer contingency, or who hope to see a higher sales price materialize – after accepting an offer!

Bump clauses create lopsided deals that work against a buyer’s best interests. As Exclusive Buyer’s Brokers, we have tactics for negotiating purchase offers that are attractive to the seller while fully protecting the buyer. You can learn more about our home buying strategies in our free e-book, “How to Buy a Home like a Pro!”

As Exclusive Buyer’s Brokers, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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