Offer Form Real Estate With Escalation Clause
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FAQ
An escalation clause (also called a relative bid or "sharp" bid) is a provision added to an offer or counter offer where the buyer offers "X dollars more" than the next highest offer. For example, an offer that states, "The purchase price shall be $1,000 higher than any other offer," contains an escalation clause.
An escalation addendum is a specific form added to an offer, that speaks for you, the Buyer, and it says to the Seller, ?We're offering X price on your house. We'd like to buy it for that initial offer price of X? BUT? if another buyer should happen to also offer X, or more, we'll BEAT THAT OFFER!
Start With the Initial Purchase Price Offer. A real estate escalation clause should always start off with the initial offer. ... Write Details on Escalation Increments. Another key element of an escalation clause is the increments by which the offer will escalate. ... Include Your Maximum Purchase Price.
An escalation clause has three basic elements: Bona fide offer price: your initial offer. Maximum amount: the highest price you're willing to pay (also called a price cap) Escalating factor?the amount your offer will increase to beat higher offers.