We understand that being a buyer in this real estate market can be incredibly frustrating and stressful. Have no fear, we are here to help guide you through the process and teach you a few things along the way to set you up in the best position possible to win an offer! Have you ever heard of an escalation clause? Maybe you have, maybe you haven’t! This is something we have seen being used more in this competitive market.
How an Escalation Clause Can Benefit You in a Competitive Market
The option to add an escalation clause into a sales contract is just one more tool that allows buyers and sellers with differing opinions on the worth of a home to come to an agreement without having to resort to a bidding war. An escalation clause allows the buyer to win an offer over other buyers by allowing them to make a higher bid if the price of another home in that area rises. It’s beneficial because it can help you get your dream house before it is sold to another person, but there are cons too. Some real estate agents say this type of clause lowers the real value of a home.
Pros and Cons to an Escalation Clause
Benefits of having an escalation clause in your sales contract: It can help you get your dream house before it’s sold to someone else. You’ll save time and money from having to keep bidding on a home.
Cons of an escalation clause: Some real estate agents think this type of clause lowers the real value of a property. Escalation clauses can be difficult to find in a sales contract, and some agents may not agree to use them at all.
There are a variety of ways to do escalation clauses, so it’s best to talk to your real estate agent about what an agreement would look like in your unique situation before you agree on anything. Some agents will use certain data points as triggers to determine when the bidding war occurs, while others will put an end date on the bidding war. Some clauses allow for automatic increases in price but don’t automatically end after a set amount of time.
Why You Should Use a Real Estate Agent to Buy Your Home
Using a real estate agent is important because they do all of the heavy lifting for you, and can advise you on what to look out for in a new home. They’re experts on the legal aspects of buying and selling properties and have years of experience dealing with buyers and sellers. When you buy a house, it can be very stressful trying to find the right property in the right location for the right price. If you have a family, it can also be hard to juggle everything including work and your life outside of work. The role of an agent is to take care of all this so that you don’t have to.
We hope this information was helpful and you learned something today! If you are considering buying or selling, we would love to get you in touch with one of our legendary agents and create the best experience possible for you.
