Multiple Escalation Clauses Push Home Buyer Competition

Multiple Escalation Clauses Push Home Buyer Competition

- With inventory low in some areas of the country, and multiple offers becoming more common, more real estate agents are employing escalation clauses to help their clients win bidding wars.  However, what once was considered a secret weapon in an agent's arsenal has become a more mainstream tool.  Escalation clauses automatically increase a buyer's offer by a set amount -- typically $1,000 -- over the highest competing offer. 

- Coldwell Banker agent Sarah McCarthy in Lincoln Park, Ill., recommended that her clients use an escalation clause because there were seven other bidders but was surprised that three other bidders employed the same strategy. More buyers are agreeing to escalation clauses because of the protections they offer, as they generally have an upper-limit cap and do not kick in unless there are other legitimate, confirmed offers.  

- Moreover, the buyer's lender will not provide financing if the contract price is not supported by an appraisal. 
"In this market that's going crazy, people just want to know that they're not jumping all in and being crazy," says Peter Kozak, an properties agent in Chicago.

– To read the full article click here: “The Competition for That Home You Want Just Got Tougher," Chicago Real Estate Daily 

- To make sure that you get the home you want, with or without using an escalation clause, contact me at:


Philip Crocker
Lead Buyer Consultant
mySanDiegoAgent Realty Group
Keller Williams Real Estate
760.212.7222
CA BRE# 01131961
 


Colleen K. Cotter - BRE #01325265 Headshot
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Phone: 619-804-6840
Dated: May 23rd 2014
Views: 125
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