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.⁣
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What is an escalation clause? Let me explain.⁣
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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.⁣
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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.