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  • Writer's pictureNancy Moeller

Escalation Clauses

While every offer term is important, let’s face it – price is the most important. Most properly priced properties are getting multiple offers, often dozens. The question becomes, “How do I offer the most, but not too much?” The answer may be an escalation clause.

An escalation clause is a contract provision where the buyer offers to pay more for a property than any other prospective buyer without knowing the price offered by the other buyers. For example, "The purchase price will be $5,000 higher than any other offer.” As not to get out of control, a buyer may add, “but not to exceed X dollars”. While this is useful in case there is an outrageously higher offer, it does reveal the maximum price the buyer is willing to pay. Either way, when using an escalation clause, it should include a requirement that the seller provide proof of the highest offer received.

If you are ready to start your real estate search, give us a call to discuss this and other methods we employ to help our buyers stand out and get accepted.

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