Scrolling through home listings, you might come across some that are tagged as “Active offer no bump.” If you’re caught wondering, “What does active offer no bump mean? Can I still make an offer on this home?” The short answer is, yes.
However, there are some serious considerations to take into account before you do. So whether you’re searching for a home in Raleigh, NC, or a summer house in Miami, FL, take a look below where we break it down for easy comprehension.
What does active offer no bump mean?
The term “active offer no bump” can be particularly confusing, but in short, this listing status signifies that a seller has accepted an offer, but that offer does not include a bump clause. Here’s what that entails:
- Active offer: A situation where a buyer has submitted an offer that the seller has accepted, but the sale has not yet closed. The property remains an active listing on the market in some capacity, depending on the exact listing status.
- No bump: The seller lacks a bump clause provision in the agreed-upon real estate contract and has agreed not to accept any new offers, even if they are better or have fewer contingencies.
This active offer no bump status provides a level of certainty for the buyer whose offer has been accepted. Even though the listing is still active, meaning the property is still technically on the market and visible to potential buyers, there is no bump clause that allows a seller to “bump” the original buyer and continue marketing the property even after accepting their contingent offer.
This differs from a contract with a typical bump clause. In contracts with a bump clause, if a better offer comes in, the seller can bump the original buyer. The original buyer then has a set time (usually 48-72 hours) to waive contingencies and make their offer more appealing or back out. This leaves the buyer at risk of being displaced by a more attractive offer.
Benefits of active offer no bump listings for buyers
From the buyer’s perspective, a home listed as “active offer no bump” offers important benefits and several key advantages:
- Peace of mind for buyers: The accepted offer is secure, and there’s reduced risk of being outbid by a competing offer or otherwise displaced by another buyer.
- Stable offer: Buyers can proceed with financing, inspections, and due diligence without the stress of losing the property to another bidder.
- Predictability: This listing status helps eliminate the competitive chaos often associated with hot markets.
Overall, the predictability of this arrangement helps buyers make plans, secure financing, and handle the overall home-buying process more efficiently, knowing their offer is protected.
Making an offer on an active offer, no bump listing
If you come across an attractive listing marked “active offer no bump,” you are not necessarily out of the running. While the seller has committed to another buyer, deals can and do fall apart. You can still express interest in the listing, but your offer won’t be considered unless the current deal falls through. Here are some steps to take:
- Submit a competitive backup offer: If the original deal collapses due to financing, inspection, or other unforeseen circumstances, you may be next in line. Submitting an appealing offer, possibly with fewer contingencies or a higher down payment, is wise.
- Understand the odds: Even though the listing is still active, there is only a slim chance that the original deal falls apart. Submitting an offer is a bit of a “Hail Mary.”
- Stay apprised of the offer status: Monitor the status of the offer and listing so that you can be prepared to act quickly if the status changes in your favor.
- Be patient: While you can’t bump the current buyer, deals sometimes fall apart, and patience throughout the process will go a long way. However, the seller might hold your backup offer until the current deal is closed, leading to a waiting period and possibly no response whatsoever.
If working with a Redfin real estate agent, it’s also a good idea to have them stay in contact with the seller’s agent to monitor the deal’s progress. This way, you are supported and will be ready to step in quickly should the opportunity arise. Your agent can also aid in helping you write compelling offers, negotiate favorable terms, identify properties with no bump clauses, and guide you through backup offers and contingencies.
How can I make a strong offer with fewer contingencies?
Want to boost your chances in competitive markets? Consider reducing contingencies such as inspection or appraisal requirements to streamline your offer. Also, putting down a substantial amount of earnest money can also demonstrate your seriousness and financial capability.
Strengthening your financial profile by improving your credit score and obtaining a pre-approval letter from your lender are additional ways to show the seller that your financing is secure and that you are a qualified buyer. Acting quickly and submitting your offer without delay is also important, so be prompt and get ahead of the competition.
FAQ about active offer no bump listings
Why do sellers list their homes as “active offer no bump”?
From the seller’s perspective, this often means they believe in the buyer’s ability to close the deal and have a desire to avoid additional negotiation. Buyers can take advantage of this by offering fewer contingencies, higher earnest money, or a quicker closing timeline in future negotiations.
What does “active offer bump show” mean?
It means a seller has accepted an offer, but is still showing the property and retains the right to bump the buyer if a better offer comes in. The original buyer then must waive contingencies or walk away.
What is the meaning of active application?
This refers to a submitted offer or loan application that is currently under review.
What are the differences between active, contingent, and pending listings?
In an active listing, a home is available and accepting offers. A contingent listing indicates that a seller has accepted an offer with conditions (financing, inspection, etc.). A pending status means that all contingencies are met, and the deal is close to closing.
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