How To Use a Bump Clause To Safeguard Your Wisconsin Real Estate Deal

By Joshua Holt

Meet Joshua, a licensed real estate professional and accomplished broker. As the forward-thinking leader of the Holt Real Estate Team, he has forged a strategic alliance with Keller Williams and PLACE to deliver on Our Promise.

What if your accepted offer isn’t as secure as you think? That risk is real if you don’t understand bump clauses. Most people overlook it, but knowing how it works can save you from losing your dream home or your sale. So what exactly is a bump clause, and why does it matter so much in South Central Wisconsin’s market?

What is a bump clause? Also known as a 72-hour clause, it’s used when a seller accepts an offer from a buyer who still needs to sell their home. The seller can still market the property and accept backup offers.

If a stronger offer comes in, the first buyer has a set window (often 72 hours) to either drop their home sale contingency or withdraw from the purchase. It keeps sellers flexible while giving buyers a chance, but only on a deadline.

What buyers should know. If you’re a buyer making an offer with a home sale contingency, you’ll likely be asked to agree to a bump clause. That means your deal isn’t guaranteed. If another buyer steps in, you’ll need to decide fast: remove your contingency (and maybe carry two mortgages) or back out.

Before making a contingent offer, talk to your lender about bridge financing or backup options.

What sellers should know. A bump clause gives you leverage. You can accept a contingent offer and still consider better ones. But you must disclose the clause to new buyers and manage timelines carefully. An experienced agent helps keep things on track.

In competitive markets like Madison, bump clauses matter. Buyers need a financial plan; sellers need to weigh flexibility against clean offers.

Whether you’re buying or selling in South Central Wisconsin this year, I can help you understand your options and avoid costly surprises. Reach out at (608) 345-6594 or debbielind@kw.com. I’ll help you make sure your next move is smart, strategic, and secure.