What the heck is an escalation clause?!

What in the world is an escalation clause and how does it work?

An escalation clause is used when you really want the home you're putting an offer on. It is essentially a way to tell the seller exactly how high you're willing to go with your offer. Say the house is listed at $100,000.00 and you are willing to go up to $115,000.00. With an escalation clause you can say your offer is $100k but you will go $1000 over the highest offer up to your $115k price that you set forth. If the highest offer only happens to be $105k then you only have to pay $106k which is a win considering you were willing to go up to $115k! This is a little trick that we as your buyers agent can put in the contract to help your chances of winning the home!

On the other hand, there are some agents who advise their sellers not to deal with escalation clauses. The sellers could come back and say that you have to have your highest and best by a certain time of the day. In that case we have a few other tricks we can use to help you get the home of your dreams!

Call us today to ensure you're best positioned to win the bidding war!

Thank you for reading.

L+H Homes, ERA Great American Realty

316-365-7767

"Your Realtors That Care!"