Well if you are buying a home right now you should definitely not only care but know how to use an escalation clause to win the home of your dreams in a MULTIPLE OFFER SITUATION. If you selling, get ready you will be calculating escalation clauses shortly! An escalation clause is used to state your intent to pay an increased amount for a home on top of a competing offer up to a pre set limit. We are seeing it frequently so let's learn how it works!
Here's an example....The home you fell in love with is $200,000 (fat chance I know) . You offer that you will escalate $2000 over a competing offer up to $210,000. That way if the seller receives an offer for $202,000 from another buyer in a multiple offer scenario then your offer automatically becomes $204,000 BUT if some one offers $209,000 then your out because it would have exceeded your limit of $210,000. Soooo how do you put this to use?
So we know a lot of buyers going to want to use these escalation clauses, in fact on my last listing with multiple offers 6 of the 8 offers had an escalation clause. So then what, how do you win your dream home then? Watch for my top three tips on how to make an escalation stand out. Or you can go to the website and cheat.! :) www.homematchnw.us