Vanguard Realty Associates

Vanguard Realty Associates


Escalation Clause Can Win the Bid

Filed under Buying a home on Aug 25,2020 | Tagged in: , ,

With so much competition in the housing market, your first offer may be your last chance to edge out other buyers.  One tactic you can use to keep your bid under consideration is by adding an escalation clause to your offer – if you can afford it.

According to this article from Bankrate, an escalation clause is designed to edge out competing bids by automatically raising an offer when a competing bid comes in. For example, if you bid $300,000 for a home, your escalation clause may say that you will meet or exceed all other bids up to $350,000.  Sellers would  need to prove that a credible competing offer was received.  This eliminates the bidding back and forth.  If you can afford a higher price, it’s an option you might consider.

For additional insights on winning a bidding war, talk to the professionals at Vanguard Realty Associates.  We’ll give you a fighting chance to come out on top.

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