When a seller doesn't want to take an offer in the hopes of getting a better deal - what to do? Put in a "bump clause."
A bump clause allows the seller to continue to market the property even while it's under contract with a buyer in the hopes that he/she will get a better offer. In the event that they receive a better offer, the seller must notify the buyer about the new offer, or that they've decided to waive the contingency and if they decide to take the new offer, the buyer under contract "gets bumped."
These situations usually occur when the market is hot and the seller doesn't want to wait to see if the buyer will get financing.
This tactic can be used as leverage in negotiating with other buyers. The sellers can try to get more money or better terms.
There are special ways to handle this and buyers and sellers really need an experienced agent who knows how to negotiate these deals. Be careful!