What is a Bump Clause in Alaska Real Estate?
You've found a buyer for your Alaska home, they've put in an offer, but now what? How can you be sure you won't receive a better offer than the one they submitted? Will you be able to accept a better deal if it comes along? As a home seller, you'll want to get to know the bump clause.
Bump clauses are getting a lot of air time in today's real estate market as they allow the seller to enter into a contract with a buyer while continuing to market their property. If they get a better offer, they can "bump" the original buyer.
Bump clauses are commonly used when a buyer has a contingency attached to their offer, meaning they need to sell their current home first or have placed the sale contingent upon factors like the inspection or appraisal. The bump clause will allow sellers to attempt to reach another buyer that may not come with any contingencies or even offer a higher price for the Alaskan home.
In order for the bump clause to take effect, the seller must notify the original buyer that they received an offer they'd like to take instead. The buyer will have a given number of days to respond, either informing the seller that they have sold their home or they are removing the contingencies altogther. If they cannot do so, then the original contract is void. The seller will then enter into a contract with the new buyer.
If the buyer informs the seller that they did sell their home, then the seller can no longer market their property and the contract stands.
Bump clauses do tend to offer the seller a feeling of control and peace in today's fast-paced real estate market. Every seller wants to get top dollar for their home and this clause is one way to ensure that happens.
Questions about selling your home in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, or North Pole? Give Madden Real Estate a call today!