Although they are still not very
common, buyers are increasingly asking about escalation clauses, especially
when they expect to be competing against many other buyers for a hot luxury home for sale in Brookline, MA. An
escalation clause consists of three main components – the initial offer price,
how much all the buyers are offering, and the maximum that a buyer is willing
to go to or capped. The escalation clause looks attractive to many home buyers because
it allows offering a price to potentially beat out the competition without
paying much more than needed to win the deal.
Should you use an escalation
clause? The answer is, it depends. It should definitely be considered as part
of your overall strategy but this is something that you should discuss with your
agent. The buyer’s offer is based on there being another bona fide offer, which
can also be an offer just made up by them. Some sellers are so adamant against
the escalation clauses that it would hurt the buyer to use one. This is where
the advice of your agent; knowing the particular situation, the seller and the
listing agent is crucial. It is also crucial to discuss and understand the
possible benefits and challenges that come along with escalation clauses.
Looking to choose from homes for sale in Brooklyn, MA? Do
take escalation clause into
consideration and discuss it with a real estate expert.
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