Escalation Clause

Typically used in WA but can be used in other states. Where escalation clauses are not frequently used we will reach out to the listing agent and ask if they will accept one. If they say no, you can still use one, however, if the agent does not want to accept one or does not understand them it weaken your offer.  We recommend having us ask the listing agent ahead of time if they are OK with us submitting an escalation clause. Even if they say no, you can submit one. 

The escalation clause states the starting price of the offer and then states how much you will beat an offer that is higher than yours by up to a certain price. 

An example of this would be:

Purchase Price = $1,000,000

Beat the best offer by= $10,000 (make sure the number is high enough that it compels the seller to take your offer)

Up to= $1,050,000

If the best offer was $1,025,000 your offer would automatically be $1,035,000.

The seller would provide us with the competing offer in most situations except in some new construction. 

If you want to ensure you get the home you can put a high escalation clause to make sure you beat all offers, but if you do this you have to make sure you are OK with the high number you set. Remember that the only way it will be escalated is if there is another offer under yours that pushed it up.