Bumpable Buyers

By
Real Estate Appraiser with Ashcroft & Associates

bumpI'm not sure if this is universal or not, but as of about a year ago our mls system gave Realtors the option to enter 'bumpable buyer' (rather than active or pending).  My assumption is that this is a buyer that has an offer pending on a property, but there is a contingency stating if a better offer is received, they can be 'bumped' out of the transaction.

I am trying to determine whether to consider the status of bumpable buyer as an active or pending sale.

Any thoughts?  Are there Realtors out there that have some sort of statistic as to how many of these bumpable buyers become the proud new owners?

 

2/22 Update:  I found the definition in our mls system:

BMP: Bumpable Buyer: Accepted offers with bumpable buyers shall be only those listings with an accepted offer which provides: 1) that the buyer's purchase is contingent upon the sale of the buyer's property within a limited time; 2) the buyer's property is in a category which can be listed in RMLSTM; and 3) that if the seller receives another acceptable offer, the first buyer has a specified period to remove the contingency. A property may not remain in active status if an offer has been accepted with the foregoing terms. "Accepted offer with bumpable buyer" sales will remain as searchable listings in BMP status in the RMLSTM System until a status change is reported. If there is an accepted offer that is dependant upon the sale of other real property then the listing should be marked BMP until: 1) The property is sold. 2) The contract expires. 3) The contract is canceled. 4) The listing is designated pending (see below). 5) The listing goes back on the market and the status is marked Active again.

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Rainer
42,616
The Entire Team of Price & Company Professionals
Price & Company Realty - Myrtle Beach, SC
I have never heard the term "bumpable buyer" in South Carolina.  If you are correct in your assumption, although they may not have the strongest contract possible, I think it's still unfair to label them this way.  The Seller accepted the contract, and if they choose to accept backup offers - so be it. I would consider the status of a bumpable buyer as PENDING.
Feb 21, 2008 11:17 AM #1
Rainer
56,515
Joyce Heffner-Williams
Keller Williams Clients' Choice Realty - Monument, CO
Owner/Broker/EcoBroker - Monument Real Estate
Never heard the term either, but I would definately consider them pending.  Ask your MLS.  Make it a great day!
Feb 21, 2008 11:34 AM #2
Rainer
53,806
Mark Archer
RealtyONEGroup - Glendale, AZ
Realtor, CDPE
Never heard of such a thing in Az. It would drfinately be a pending though. it sounds a little weird to me for the mls to call a buyer "bumpable". A contract is a legal binding document......
Feb 21, 2008 11:38 AM #3
Ambassador
413,277
Virginia Hepp
ERA - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS
Here in Mesquite we have "pending with contingency", shown in the comments, but it is still active.  Most listing agents put in a 72 hour release clause in the acceptance.  If another offer comes in, the contingent buyer has 72 hours to release the contingency, or their offer is cancelled.  If they release the contingency and are not able to perform and close the escrow, they lose their deposit.  Sometimes the 72 hour clause calls for a substantial increase of non-refundable deposit.
Feb 21, 2008 12:32 PM #4
Rainmaker
117,620
Sara Goodwin
Ashcroft & Associates - Portland, OR
Portland, Oregon Appraiser

Christopher - I know!  The term does seem a bit... rude, doesn't it?

Thanks Marina - I was hoping to get Bukaty to answer it for me, but she seems to be hiding :-)

Mark - I'm leaning toward pending as well.

Well Virginia, now you make me want to change my answer to Mark... but I'm going to leave it even if a bumpable buyer does sound an awful lot like 'pending with contingency' (funny, that sounds more like a pending sale than bumpable buyer does, though)

Hi Michael - With underwriters wanting more and more current sales and pendings, this is something I'm going to have to educate myself on soon.  And btw, I thought you had an answer for everything ;-)

Feb 21, 2008 06:13 PM #5
Ambassador
413,277
Virginia Hepp
ERA - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS
Hi again, Sara - I think bumpable buyer (say it 3 times, real fast, funny term) and our still active pending with contingency are the same thing.  I think I remember a controversy about active vs pending a while ago and the result is active with pending with a contingency in the remarks.  I personally don't show those listings, there are very few, maybe 2!  There are plenty of homes on the market for the amount of buyers that we get.  Note:  Mesquite MLS is very small, about 175 members, and we have 516 active listings today.  Many of our sales are to retirees and second home buyers.  Contingencies are not usually even considered.
Feb 21, 2008 11:54 PM #6
Rainmaker
117,620
Sara Goodwin
Ashcroft & Associates - Portland, OR
Portland, Oregon Appraiser
Found the definitions page in mls - See above for post update.
Feb 22, 2008 09:59 AM #7
Rainmaker
117,620
Sara Goodwin
Ashcroft & Associates - Portland, OR
Portland, Oregon Appraiser
So they simply wanted a pended that would not be bypassed by shoppers.  It sort of makes sense...
Feb 22, 2008 10:04 AM #8
Rainer
48,203
Doug Garner
CENTURY 21 Garner Properties - Independence, KY
Broker-Manager, Auctioneer Northern Kentucky

Great Topic, Great Post. Bumpable buyer is certainly a first for me. Pending, continue to show, is the next closest thing I've seen thats comparable. Up until about 10 years ago our MLS had a "pending, continue to show, status that was specifically created for your above "bumpable buyer" status. Turned out that it was one of the biggest liability / controversial issues that agents/brokers/sellers could get themselves into. After MLS legal counsel examined the problem, they (attorney's) reccommeded a 5 page addendum relating to Pending, continue to show with notice to buyer 1 upon another acceptable offer. One of the single best things our MLS directors ever done was to define Active listings (those allowed in MLS) as: "Active listings are Listings that are available for immediate showing and acceptance of offers by the seller without reservation." Otherwise the property shall not be in active status in the MLS. This virtually eliminated "contingent upon the sale of" offers and cleared up a huge liability issues. Most, not all, sellers do not want their property in MLS as pending while they wait for a buyer to sell their property so they most usually will only consider contingency offers that include accepting other offers with "No Notice" (we've labeled it "Drop Dead" contingencies) to buyer 1. Listings that have an accepted offer with Drop Dead contingencies are not required to be marked as pending because the seller can accept offers without reservation.

Feb 22, 2008 11:17 AM #9
Rainmaker
46,762
Alisa McKeel Willson
Appraisal Pros in Texas - Huntsville, TX
Certified Res. Appraiser

Interesting, Sara.  We don't have that term here on our MLS unless I just haven't noticed it.  I can't say I like it.  I think I would consider it an active.....

Feb 23, 2008 03:27 PM #10
Rainmaker
117,620
Sara Goodwin
Ashcroft & Associates - Portland, OR
Portland, Oregon Appraiser

Hi Doug - It would make sense if Realtors are not searching pending sales for their clients to look at (although it doesn't always seem to be the case around here).  I always thought in a buyers market, there are enough contingencies in the contract for a buyer to back out at any moment... bumpable or not [pending] -

Alisa - I think to be safe, I would note a 'bumpable' as 'active' too if it came up in an appraisal report.

Feb 25, 2008 10:59 AM #11
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Rainmaker
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Sara Goodwin

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