Here is a tip about escalation clauses that can help you win deals.
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When you’re putting in an offer as a buyer, there are two routes you can take in this multiple-offer climate that we’re in. You can put in your highest and best offer to start with in order to win the deal. Otherwise, you can include an escalation clause. An escalation clause is a provision you can put in the contract that says you’re willing to go up to X amount over the highest offer given, up to a certain dollar amount.
There are three things you need to include:
1. What is your original offer price?
2. How much are you willing to go over the highest offer that a seller may receive?
3. Up to what price are you willing to go?
“An escalation clause might put you in a position where you can win the deal.”
If a house is listed at $300,000 and you’re willing to go up to $310,000, you may put in an offer that says you’re offering $300,000 but you’re willing to go $1,000 over any other offer that is provided up to your limit of $310,000.
It might put you in a position where you can win the deal. Be cautious, though, and be sure not to put out a number that you’re really not comfortable going up to. If it gets bumped up to that price, you have to go to that price.
If we can help you in buying or selling down the road, give us a call at 803-278-1818. We’re here to help.