I have shared some tips on how to make yourself, as a buyer, more appealing and less risky to a seller. We have talked about how everything has changed in the past couple of years in Real Estate. So what we are seeing are “escalation clauses” written into offers in a multiple offer situation [which is every offer I have written in the past 2 years].
An escalation clause can help a buyer compete, and ultimately offer more than the highest bidder. For a seller who is mainly interested in their bottom line, the highest bidder might be the one to win the house.
This is of course not always the case but it is most common these days. Here is an example:
PRICE ESCALATION: Buyer offers $449,000 as the Purchase Price. However, Buyer will increase Purchase Price over any other written and signed Offer that Seller receives, to exceed any other such purchase price by $10,000, up to a maximum Purchase Price of $552,000. Seller agrees to provide a copy, with appropriate redactions, of the competing offer within 2 calendar days of MEC (mutual execution of this contract). Upon acceptance of this Offer, Buyer and Seller agree that the final offering price, up to a maximum of $552,000, will become the contractual Purchase Price.