Here’s a quick primer on how the price escalation addendum works.
What is the price escalation addendum to the agreement of sale? It’s the super tool we’re using to get our buyer’s offers accepted. This document says that the buyer is willing to pay X dollars over any other offer up to a maximum of X dollars.
“We know specific strategies for how to use this form to win the home you love.”
As an example, a home is listed for $200,000, but in this real estate market, you would be willing to pay $210,000. So we might say you’re willing to spend $2,000 over any other offer up to a maximum of $210,000. If another offer comes in at $203,000, then you would be willing to pay $205,000. It doesn’t automatically escalate to your maximum, it just increases incrementally higher than the other offers.
We also work with many sellers and list plenty of homes, so we receive escalation clauses all the time, and we’ve found that certain methods tend to win. We know specific strategies for how to use this form to win the home you love.
If you’re considering buying a house and want to know how the process works and how we strategically utilize the escalation addendum or just have questions, give us a call or send an email. We would love to help you.
