Let's talk escalation clauses.

So to be fully transparent, as of two years ago no one was using escalation clauses because we didn't have this much competition. Now that we have a competitive buyer's market, almost everyone, meaning agents and buyers are using the escalation clause.

So an escalation clause is set forth so that you can start at a certain price but if another buyer should come in and beat that price by however much, you're able to then escalate by a specific amount. Of course, you’re going to set the top dollar that you want to be at, but this gives you a better chance of getting that home.

So, for example, let's say the home is listed at $500,000; You would then come in with a purchase price of $515,000, but you could say I'm willing to escalate up to six hundred thousand dollars if there is another offer that should escalate me to that price. Then the seller must send you the contract that escalates you.

I hope this helps! If you have any questions about escalation clauses, give me a call. Thanks so much, and I’m glad you stopped by.