Escalation Clause Real Estate:
Many have been asking me lately what is an escalation clause attached with an offer to purchase a home. An escalation clause is an addendum attached to your sales offer for a home you would like to purchase. This addendum should only be used when a home has multiple offers and it’s your way to be more competitive with your offer. The addendum states you (the buyer) will increase your offer amount by $XYZ amount above any other offer but not to exceed a maximum amount of a sales price of $XYZ. The use of addendum can be an invitation for the seller to wait for more offers to try and obtain more. There is a lot to go over and discuss before using this addendum but this gives you a simple idea on what an escalation clause is. If you would like to discuss the current market and how you can be as competitive as you can in this market, I am more than happy to discuss the options with you!
All the best, Lisa Joy