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A Win-Win for Home Buyers and Sellers
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In today’s market, buyers are searching for a way to stand out, especially in a competitive home sale with multiple offers. Sellers, on the other hand, want to get the highest possible price for their property. That’s why an escalation clause can be so attractive to both parties. It’s a negotiation tool that helps buyers potentially beat out the competition while letting sellers know they have a buyer who is willing to drive up the price of the home.
What is an escalation clause?
It’s a provision in a home purchase agreement that automatically increases a buyer’s offer. When Buyer A’s offer is topped by Buyer B, Buyer A’s original bid is automatically triggered to "escalate." Here’s how it works:
1The buyer determines their initial offer as well as an escalation amount, which is the amount they’re willing to automatically boost their offer by. For example, if the escalation amount is $3,000 then the clause will automatically outbid competing offers by $3,000.
2The buyer sets their final price cap. It’s the most they are willing to pay for the home.
3The buyer’s agent writes the contract with the buyer’s initial offer and includes their escalation clause in the documentation.
4The seller’s agent provides proof of all competing offers, obscuring the personal information of the other buyers.
When a buyer uses an escalation clause, they make it clear to the seller that they are a serious contender, motivated and financially prepared to outbid higher offers, up to a pre-determined, maximum amount. The escalation clause also brings some peace of mind to the seller, especially if they want to avoid drawn-out, stressful negotiations. 

Now more than ever, it’s vital that you work with a trusted advisor who can manage your real estate experience from start to finish. If you need an expert in your corner, one who has mastered real estate strategies and negotiation technique, please contact me. It would be my pleasure to support your journey home.
Weichert Realtors
Equal Houseing Opportunity2020 Weichert, Realtors®. Each Weichert® franchised office is independently owned and operated. Weichert® is a federally registered trademark owned by Weichert Co. All other trademarks are the property of their respective owners. REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is a Member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics. If your property is currently listed with a real estate broker, this is not intended to be a solicitation of the listing. Information herein is deemed reliable but not guaranteed.

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