An escalation clause can make you a stronger buyer.

As a buyer, adding an escalation clause to your offer will make it more competitive in this market.

What’s an escalation clause? It’s a clause that stipulates that you’ll raise your offer automatically in the event of competing offers up to a specified price. The reason this can be beneficial is that you’re able to extend your best offer, which could be significantly higher than other competitive offers.

If, for example, you make an offer of $640,000 on a home and add an escalation clause that increases the offer by $1,000 up to $650,000, and then another offer comes in at $640,000, your offer would increase to $641,000. In that scenario, you’d save $9,000 instead of going all the way up to $650,000.

If you have questions about escalation clauses or how to be competitive as a buyer in this market, don’t hesitate to reach out to me. I’d love to hear from you.