Should You Use An Escalation Clause?
Posted by The Cobb Group on
An escalation clause is language inserted into a purchase offer for a home that's intended to make sure a buyer is the highest bidder. It's typically used when a buyer and their real estate agent strongly believe a house will receive multiple offers.
An escalation clause states that the buyer will pay a certain amount of money above the highest offer the seller receives. It generally includes a ceiling cap to make sure the buyer doesn't agree to pay more money than they can afford.
Learn more about escalation clauses and how they work.
What Is an Escalation Clause?
An escalation clause improves the odds that a home buyer will submit the highest offer. It typically includes three parts:
- Proof of an offer: Sellers can only use the…
466 Views, 0 Comments