When the real estate market has such short supply and high demand, buyers can experience hardships securing their purchase.
What is an escalation clause? During the offer process, the agent writing the offer for the buyers can include this clause. It essentially shares with the sellers you are willing to spend more money on the property if competing against a higher offer. Notated will be a cap and an incremental increase so the seller’s agent can assess the best offers and better advise their clients.
When the market is this tight, sellers have to make a tough decision. They are typically supplied more offers and have to rely on their agents to help determine the nuts and bolts of those offers to determine the optimal choice. By having a buyer’s agent include an escalation clause, they are streamlining the process, so multiple backs and forth don’t have to occur, and all of the upfront details are there for consideration. Sellers appreciate the transparency, and it helps them spend the time focused on finding the right buyers for them. Buyers can then rest knowing they put their best foot forward for consideration in their first offer and realize it was a competitive offer.
Are you a buyer ready to secure your dream home? Then make sure to consult with your real estate professional about the possibility of including an escalation clause and determine what you are willing to offer for a property. You may have to speak with a lender too, so starting with your agent will be a great first step.
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To be competitive in our current market it is important to find an agent who understands the steps needed to help find success for buyers. Your real estate agent at RE/MAX Capitol Properties can help reduce some of these challenges by visiting with you about a potential escalation clause, especially when you are up against a cash offer. Call 307-635-0303 to schedule an appointment with Christina Walton of the Cheyenne Dream Team featured in our video below on escalation clauses.