So....I have a lender guru friend that has a package deal for larger home purchases. As prices continue to raise, it only benefits to educate yourself on some or all of the options. Most
Escalation Clause To Win A Home Or Is It Even Worth It
What is an escalation clause?
It's Buyer 1 saying I will pay X amount of dollars above your highest offer.
Buyer 2 is at 250k
Buyer 3 is 255k
Means at the end of the negotiations we are paying X dollars above 255k.
What if the home is on the market for 250k and buyer 2 thinks their offer is the strongest because, 'hey, we came in at list price?'
255k is willing to pay 5k above list price, they think they got the home.
But..... We get it for paying 2,000 above the highest offer in the escalation clause.
Now it only appraises for 250k, what happens next?
Does the seller and buyer agree to sell it for appraised value, meet in between, or the 257k? That's where great negotiations comes in and having an experienced realtor on your side of the transaction can make you a happy buyer or seller.
We, at the Cotton Group of West USA, have several experienced realtors on our team that specialize on the buy side, the sell side, and a few that do both. And we have experience clauses in the contract that have proven time and time again to work, to get you the best deal for the home, or the highest net. Specifically if the home doesn't appraise for the 257k, will the deal stay alive? With us, you have a better shot.
Click here to find us on Facebook, and let's start the talk about buying, selling, negotiating, or anything in between. We look forward to hearing from you.
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What is an escalation clause?It's Buyer 1 saying I will pay X amount of dollars above your highest offer. Buyer 2 is at 250kBuyer 3 is 255kMeans at the end of the negotiations we are paying X