An escalation clause automatically increases a buyer’s offer by a certain amount, say $5,000, each time another buyer makes a higher bid. It essentially eliminates the back and forth of offers and counteroffers.
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? Consider it the eBay of real estate. Let me explain.
You can start your offer with a lower bid, but include an escalation clause up to whatever maximum price you choose, to increase your chances of winning without putting all your cards (or dollars) on the table up front.
If you’re looking to sell, it’s highly likely an escalation clause will come your way—which means top dollar for your home! Got questions? Reach out and let’s connect.
This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.