In this market, buyers are wising up to ways they can make their offer stand out above the rest. One strategy? Including an escalation clause.
What is an escalation clause? Let me explain.
An escalation clause automatically increases a buyer’s offer by a certain amount, for example $2,000, each time another buyer makes a higher bid up to a predefined cap (set by the buyer). It essentially eliminates the back and forth of offers and counteroffers.
This is a common practice in this current market where so many buyers are competing for the same property. Is it always the best strategy?? Not always! Make sure that you hire a Realtor that has a lot of experience competing in this market. They will be able to guide you to which negotiating strategy is the best for your scenario!
Looking for more ways to write a competitive offer? See my article on Tips for Winning in a Bidding War.
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