House Offer With Escalation Clause In Chicago
Description
Form popularity
FAQ
Many states, including Texas, California, Illinois, and Massachusetts, recognize escalation clauses as a matter of contract law.
Escalation Clauses: what has been your experience the last year? For example with a house going for $300K, you may add an escalation clause to your $325K offer saying you'll offer $10K more than any other higher offer up to a max of $355K.
Question: The general formula for an escalator clause adjustment is: new = original × (original year index / current year index).
Escalation clauses in my area are very common and have been quite successful, but $1000 is pretty much the standard.
Escalation clauses in my area are very common and have been quite successful, but $1000 is pretty much the standard.
The reason why sellers don't want escalation clauses is simple: It introduces the risk that they'll sell the house for less than what would be your best and final offer.
