House Offer With Escalation Clause In Texas
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However, buyers need to be careful with these clauses as they can sometimes backfire. “An escalation clause needs to be in conjunction with a really good offer,” said Madani of Room Real Estate. “It's really the whole package to get your offer accepted.”
However, buyers need to be careful with these clauses as they can sometimes backfire. “An escalation clause needs to be in conjunction with a really good offer,” said Madani of Room Real Estate. “It's really the whole package to get your offer accepted.”
Bidding higher is the best way to beat an existing offer with an escalation clause. In most cases, the seller's agent won't and can't reveal the highest offer in an escalation clause, so you may have to guess.
The Texas Real Estate Commission (TREC) warns against them TREC has instructed agents & brokers specifically not to enter escalation clauses into special provisions & instructs that any escalation clause must be written by an attorney.
An escalation clause is triggered when the seller has proof of a bona fide offer from another buyer. This means that the offer is legitimate and enforceable. Essentially, a seller cannot make up another offer.
The seller could accept one of the offers, deliver it back to the buyer and create a binding contract with that buyer. Another option for the seller would be to issue a counter-offer to a buyer and negotiate with just one buyer using counter-offers until they have a meeting of the minds and a binding contract.
However, buyers need to be careful with these clauses as they can sometimes backfire. “An escalation clause needs to be in conjunction with a really good offer,” said Madani of Room Real Estate. “It's really the whole package to get your offer accepted.”
