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Old 08-21-2021, 04:44 PM
 
567 posts, read 1,734,162 times
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An escalation clause states that the buyer will pay a certain amount of money above the highest offer the seller receives (i.e. $1,000). It generally includes a ceiling cap to make sure the buyer doesn't agree to pay more than they can afford or are willing to pay. Any lessons learned? Regrets?

Thanks!
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Old 08-22-2021, 11:06 PM
 
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I've offered w/escalation twice. The first there were 37 offers and I wasn't even close to the eventual sale price. The second there were 15 offers and my bid and one other had an identical escalation cap. Owner sent our two bids back asking for highest and best. I left my offer unchanged while the other offer was increase. I lost out on the house. I don't have regrets because I had already escalated to what the house was worth to me.

Don't get caught up in the pressure or emotion that can come w/multiple offer situations and rapid decision-making. Make logical assessments (w/the help of your agent) when forming an initial offer and then stick to them.
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