3,176,576
John, In my area I'm seeing some listing agents refuse escalation clauses outright. Just give us your highest and best, PERIOD. I don't know if it's because doing the math for an escalation clause just makes their heads hurt, or if they just like having the buyers bid against themselves.
We're in a market where the comps mean little to nothing, and what I THINK a home should sell for isn't tied to reality.
Personally, I can't see anything to be gained by a double escalation clause that couldn't be accomplished with a single. You've already tipped your hand as to the max you're willing to go when the listing agent sees the 2nd escalation clause, so what is gained?
-
Debe Maxwell, CRS
Charlotte, NC
-
Don Baker
Eatonton, GA
-
Doug Dawes
Topsfield, MA
-
Candice A. Donofrio
Fort Mohave, AZ
-
Brenda Mayette
Glenville, NY
-
Buzz Mackintosh
Frederick, MD
-
Steve Higgins
Kelowna, BC
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Fred Griffin Florida R...
Tallahassee, FL
-
John Juarez
Fremont, CA
-
Anna "Banana" Kruchten
Phoenix, AZ
-
Greg Large
Grove City, OH
-
Kathleen Daniels, Prob...
San Jose, CA
-
Lyn Sims
Schaumburg, IL
-
Pete Xavier
Pacific Palisades, CA
1,507,073
That's not something I've seen before. Seems counter productive to have two of them. One at the higher number would make much more sense.
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
-
Brenda Mayette
Glenville, NY
-
Buzz Mackintosh
Frederick, MD
-
Steve Higgins
Kelowna, BC
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Fred Griffin Florida R...
Tallahassee, FL
-
John Juarez
Fremont, CA
-
Anna "Banana" Kruchten
Phoenix, AZ
-
Greg Large
Grove City, OH
-
Kathleen Daniels, Prob...
San Jose, CA
-
Lyn Sims
Schaumburg, IL
-
Karen Climer
Orlando, FL
3,350,764
What is the point? The second escalation negates the first one - what am I missing?
-
Signature Homes & Estates
Gilroy, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
-
Buzz Mackintosh
Frederick, MD
-
Steve Higgins
Kelowna, BC
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Jeff Pearl
Lovettsville, VA
-
Gary Frimann, CRS, GRI...
Gilroy, CA
-
Fred Griffin Florida R...
Tallahassee, FL
-
John Juarez
Fremont, CA
-
Greg Large
Grove City, OH
-
Kathleen Daniels, Prob...
San Jose, CA
2,684,769
I've never seen a "Standard Form" for that.
Is the Agent trying to practice law without a license?
-
Joan Cox
Denver, CO
-
Debe Maxwell, CRS
Charlotte, NC
-
Kathleen Daniels, Prob...
San Jose, CA
-
Doug Dawes
Topsfield, MA
-
Candice A. Donofrio
Fort Mohave, AZ
-
Anna "Banana" Kruchten
Phoenix, AZ
-
Steve Higgins
Kelowna, BC
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Gary Frimann, CRS, GRI...
Gilroy, CA
-
John Juarez
Fremont, CA
1,575,122
Seems crazy and may void out the offer all together due to a lack of certainty and definiteness of terms.
-
Signature Homes & Estates
Gilroy, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Kathleen Daniels, Prob...
San Jose, CA
-
Doug Dawes
Topsfield, MA
-
David M. Dwares
Fort Lauderdale, FL
-
Buzz Mackintosh
Frederick, MD
-
Anna "Banana" Kruchten
Phoenix, AZ
-
Steve Higgins
Kelowna, BC
-
Wanda Kubat-Nerdin - W...
St. George, UT
1,326,624
I do not support the escalation clause strategy. As a listing agent, if I receive an offer with an escalation clause, it will get a counter to the max of the escalation clause amount unless I had another offer that was still better than that max. An escalation says to me that the buyer wants to pay less but will pay more if needed. It is a silly way to try to negotiate a lower price while telegraphing the message to the seller that you are willing to pay more if you have to.
-
Debe Maxwell, CRS
Charlotte, NC
-
Joan Cox
Denver, CO
-
Kathleen Daniels, Prob...
San Jose, CA
-
Doug Dawes
Topsfield, MA
-
Margaret Rome Baltimor...
Pikesville, MD
-
Steve Higgins
Kelowna, BC
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Gary Frimann, CRS, GRI...
Gilroy, CA
-
Fred Griffin Florida R...
Tallahassee, FL
420,003
Doesn't seem like it helps buyer get in front of anyone
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
-
Buzz Mackintosh
Frederick, MD
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Gary Frimann, CRS, GRI...
Gilroy, CA
-
Fred Griffin Florida R...
Tallahassee, FL
-
John Juarez
Fremont, CA
-
Anna "Banana" Kruchten
Phoenix, AZ
-
Kathleen Daniels, Prob...
San Jose, CA
808,779
It's not normal here. I have not done it or have I seen it before. Only benefit would be your client may have a better chance of getting the home, however if you come in with your best offer that should be suffice.
-
Debe Maxwell, CRS
Charlotte, NC
-
Joan Cox
Denver, CO
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
-
Buzz Mackintosh
Frederick, MD
-
Anna "Banana" Kruchten
Phoenix, AZ
-
Wanda Kubat-Nerdin - W...
St. George, UT
3,590,666
No I have never seen a double escalation clause. And honestly most sellers in our hot market do not want to see any escalation clause - period. Give us your Highest and Best offer, upfront, including an appraisal waiver addendum etc.
-
Debe Maxwell, CRS
Charlotte, NC
-
Kathleen Daniels, Prob...
San Jose, CA
-
Doug Dawes
Topsfield, MA
-
Buzz Mackintosh
Frederick, MD
-
Steve Higgins
Kelowna, BC
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Gary Frimann, CRS, GRI...
Gilroy, CA
-
John Juarez
Fremont, CA
914,208
No. Doesn't make a lot of sense to me. Just submit your highest and best offer and it will either work or it won't. Many of the escalation clauses I've seen are capped at around $5000.00 above list.
-
Debe Maxwell, CRS
Charlotte, NC
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
-
Buzz Mackintosh
Frederick, MD
-
Steve Higgins
Kelowna, BC
-
Wanda Kubat-Nerdin - W...
St. George, UT
1,847,911
Nope, never seen it but ..... evidently this agent thought that might work. I think it is just starting all over again.
It's not hurting the buyer or seller at all doing this it just seems repetitive. I don't think it is game playing. It's just a strategy.
If a listing agents head is going to hurt adding $15K over the highest offer they should get into another business or bring a calculator.
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
-
Buzz Mackintosh
Frederick, MD
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Gary Frimann, CRS, GRI...
Gilroy, CA
-
Fred Griffin Florida R...
Tallahassee, FL
-
John Juarez
Fremont, CA
907,777
Most agents are refusing escalation clauses because you cannot show the highest offer so you cannot prove to the buyer that you need to go higher. I don't understand the two clauses. Maybe they did one and changed their minds, increased it and accidentally sent both?
-
Debe Maxwell, CRS
Charlotte, NC
-
Steve Higgins
Kelowna, BC
-
Joan Cox
Denver, CO
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
3,142,169
Have never seen or used one John but greed is very prevalent in some markets. Our broker prefers we do not use them!
-
Debe Maxwell, CRS
Charlotte, NC
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
-
Anna "Banana" Kruchten
Phoenix, AZ
-
Steve Higgins
Kelowna, BC
2,073,670
I've never seen the double-double here.
Plenty of escalation clauses, but no preambles.
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
-
Buzz Mackintosh
Frederick, MD
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Gary Frimann, CRS, GRI...
Gilroy, CA
-
John Juarez
Fremont, CA
1,202,697
My seller received an offer with an escalation clause that bettered any offer or counter offer by $1000. I don't like escalation clauses & think the use of should be prohibited.
-
Debe Maxwell, CRS
Charlotte, NC
-
Steve Higgins
Kelowna, BC
-
Joan Cox
Denver, CO
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
2,195,834
If you have 15-25 offers - Which Offer’s Escalation Clause Trumps what other Escalation Clause ( assuming they All have one )
Utter madness !
-
Debe Maxwell, CRS
Charlotte, NC
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
-
Michael J. Perry
Lancaster, PA
853,912
Oh please no! I'm not convinced that agents are properly explaining ONE escalation clause to consumers. I can't imagine adding another!
-
Debe Maxwell, CRS
Charlotte, NC
-
Joan Cox
Denver, CO
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
634,125
No I have not seen a second one before. As a listing agent I call for highest and best. When the Seller counters an offer with an escalation , I recommend they counter the front page of the offer and ignore the escalation addendum.
-
Debe Maxwell, CRS
Charlotte, NC
-
Steve Higgins
Kelowna, BC
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
1,749,275
It's all ridiculous. Might as well just pay double the asking price.
-
Margaret Rome Baltimor...
Pikesville, MD
-
Debe Maxwell, CRS
Charlotte, NC
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
431,162
One of the best offer they can submit. I’m not wasting time and paper on a second escalation clause.
-
Debe Maxwell, CRS
Charlotte, NC
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
-
Buzz Mackintosh
Frederick, MD
-
Anna "Banana" Kruchten
Phoenix, AZ
1,153,794
Using one clause would be damaging enough in my opinion and two escalation clauses is plainly absurd. Keep it simple, give it your best shot and don't get caught up in the game play.
-
Debe Maxwell, CRS
Charlotte, NC
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
-
Buzz Mackintosh
Frederick, MD
-
Anna "Banana" Kruchten
Phoenix, AZ
5,246,557
Not a fan of escalation clauses. Go in with your highest and best and be prepared to walk!
-
Debe Maxwell, CRS
Charlotte, NC
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
3,864,791
I like what Anna Banana Kruchten CRS, Phoenix Broker has to say:
Give us your Highest and Best offer, upfront, including an appraisal waiver addendum etc.
-
Debe Maxwell, CRS
Charlotte, NC
-
John Meussner
Fair Oaks, CA
-
Doug Dawes
Topsfield, MA
-
Buzz Mackintosh
Frederick, MD
5,879,826
I hate using escalation clauses at all, so would never have two of them.
-
Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
-
Steve Higgins
Kelowna, BC
1,057,674
Crazy. I am glad that in my area we don't use AN escalation clause, let alone more than one.
When I worked for Pru during the last boom, our broker said NO escalation clauses, we are not getting in trouble later if someone eBay bids and regrets it. LOL pretty prescient statement in 2004!
Wasn't long after that that Arizona instituted the Market Conditions Advisory.
AKA the 'we don't have a crystal ball and you might have screwed the pooch' advisory.
-
Debe Maxwell, CRS
Charlotte, NC
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
2,785,606
Every piece of Real Estate I ever wanted/pursued etc., was purchased e-z- peasy nice & breezy with emphasis on doing what it takes to get it.
-
Debe Maxwell, CRS
Charlotte, NC
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
1,209,456
Never heard of it, why?
-
Debe Maxwell, CRS
Charlotte, NC
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
5,258,986
Not normal AT ALL! And, it something that we cannot accept here in NC OR SC. When agents present them, I tell them we are not allowed to accept them and their buyers will need to come back, putting their best foot forward. If they're willing to go $X over $X, then state that price on the revised Offer!
-
Fred Griffin Florida R...
Tallahassee, FL
-
Margaret Rome Baltimor...
Pikesville, MD
1,712,030
I've never heard of it before, what is the point? This market is bringing out all the crazy stuff.
-
Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
717,185
Never seen this - although we do use escalation clauses. If I represented a seller in this scenario, I would suggest countering that offer - eliminating the escalation clause - at the highest price the buyer noted they would agree to purchase per the highest escalation clause.
-
Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
381,787
sounds dumb
-
Tammy Lankford,
Eatonton, GA
-
Fred Griffin Florida R...
Tallahassee, FL
6,426,155
Seems unnecessary to use two clauses to get to the same top price.
It could be that the buyer's agent is just trying to soften the number that they know the buyer will eventually have to pay by putting it in stages.
-
Debe Maxwell, CRS
Charlotte, NC
2,380,487
I have not heard that - I don't understand the reasoning! In DC and the area of MD near DC, you submit an escalation clause and the seller must come back to you with the winning bid - and then you have the right to say yes or no to the "winning bid" as it is considered a counter by the seller - in Virginia when the seller comes back to the buyer with a number (as long as it is within the structure of the escalation clause) the buyer is stuck with that number.
766,969
I don't believe in an escalation clause as it presumes that the buyer is the richest person in the world and can out bid everyone.