The escalation clause is an additional term that is added to the purchase offer. This term tells the seller of a home that you are willing to purchase the home for more than those buyers who have an interest in the same home.
This clause says we will escalate our offer by X amount of dollars over your highest offer. A buyer can set a maximum amount for the offer as well. Here is an example:
We will pay you $2,000 more for your home than any other buyer. We will pay up to say $12000 over the list price. In addition, you can say that you will pay the increased price even if the loan appraisal does not support the agreed price. That means as the buyer you have to be prepared with more cash.
An experienced agent may suggest an escalation clause be added to your purchase offer to give you a better opportunity to execute a contract.
We continue to stay focused on the needs of buyers and sellers.
Tampa Bay Real Estate