Learn how real estate agents use a real estate escalation clause to write winning offers on homes that get accepted.
Have you ever used a real estate escalation clause before? Today we are going to talk about how to structure a winning offer and how to avoid being the target offer to beat. We’ll touch on how to use an escalation clause, as well as several other tips to get a seller to accept your client’s offer.
VIDEO: Real Estate Escalation Clause — How to Write Offers That Get Accepted
TIPS: How to get your offer accepted in a hot market
- Shorten contingencies or in some cases remove contingencies. (Watch the video above for some great examples of this.)
- Ask pointed questions to the selling agent. If my client offers x, will they be in the running? (Note: there is nothing legally preventing a listing agent from providing you with details on current offers.)
- Escalation clauses. Let’s dig deeper on this one.
Real estate escalation clause
You can write an escalation clause into an offer. It states that your client is willing to go a certain amount higher than the highest offer. In addition, you can build into the escalation clause an upper limit or a cap. This will prevent “escalating” the price too high, reaching an amount your client can’t afford.
Here is an example of a real estate escalation clause. Buyer offers to pay $____ for the home, but if the seller receives a bona fide offer that is higher, buyer will increase the price to $____ above the amount of the other offer.
This is a very strong option for writing winning offers!
Need a coach?
For more help learning how to compete in this hot market, get an ICC coach in your corner. Whether it’s real estate escalation clauses or contingency removal, there are many strategies for making your offers stronger. Our coaches can help you create a custom plan to reach your goals. Get more offers accepted in 2021! Set up your free consultation call today.