In a multiple offer situation what would prevent a seller from countering one buyer who has no escalation clause in order to trigger another buyer's escalation clause in an effort to run up the price? I feel I feel that it would be unethical, but wouldn't it be a possibility? I hope that made sense.
Thank you for this information Matt. Not sure whom the '6' were that provided thumbs down to the great education you provided, but then don't care. Great knowledge transfer, I really appreciated this information.
As the seller we did exactly that. The buyers’ escalation was triggered by a much much higher bid, but that offer had risky contingencies. So we went back to the offer with the escalation, and countered their cap, removing the escalation clause. We close in 30 days!
@@juliamundt101 So sounds like an escalation clause is really just showing your hand and they will counter you back at the highest amount possible, so it seems the escalation clause is more a benefit to the seller than the buyer.
You can search 'escalation clause' followed by your state and you should be able to find an example addendum that way. Here's the one for VA (I'll also put the link in the description) -- imgur.com/a/VH4gx
I hear what you're saying. Technically if the seller uses your Escalation Clause, they have to show proof of the second offer. However, they could always just counter you at the top price and just throw away the Escalation Clause..I have mixed feelings on it
@@TheMattLeighton I know that the listing agent already has one offer and based on the price and pool of buyers in this price range more offers are coming. I've used an escalation clause several times in the past and won because of it. I always get a copy of the competing offer that capped the bidding. When I've lost then my buyer knows we went to the limit and appreciate that the escalation clause kept them from paying more than they would've had we got into a bidding war.
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How do i know for sure there are other offers on the table!? I ask the seller agent!?
Thanks for this useful information. Great video! Always looking forward to learning more from your channel.
Thank you. This information was perfect. Exactly what I needed to know about escalation clauses.
In a multiple offer situation what would prevent a seller from countering one buyer who has no escalation clause in order to trigger another buyer's escalation clause in an effort to run up the price? I feel I feel that it would be unethical, but wouldn't it be a possibility?
I hope that made sense.
Thank you for this information Matt. Not sure whom the '6' were that provided thumbs down to the great education you provided, but then don't care. Great knowledge transfer, I really appreciated this information.
Tried using an escalation clause, seller rejected it and countered at escalation clause cap, aurgh :(
As the seller we did exactly that. The buyers’ escalation was triggered by a much much higher bid, but that offer had risky contingencies. So we went back to the offer with the escalation, and countered their cap, removing the escalation clause. We close in 30 days!
@@juliamundt101 So sounds like an escalation clause is really just showing your hand and they will counter you back at the highest amount possible, so it seems the escalation clause is more a benefit to the seller than the buyer.
Great information. Highly needed for today
Thanks a lot man, helped me out while I'm studying my class!
Awesome! Best of luck on your test
How do you get the forms to do this. I use a lawyer and do the negotiations myself then have him close the deal and check over all paperwork
Dam I'm an investor and I had no idea. Thank u
Thanks this was awesome ! Well needed knowledge
Thanks Daron! 🙏
How do you know for sure there is another offer? Do you just take the word of the listing agent? Is there a way to find out for sure?
You never know 100% for sure. You have to take the word of the listing agent...who may or may not be telling you the truth
Great information! Thank you
Glad it was helpful!
How do you word the escalation clause in the offer?
You can search 'escalation clause' followed by your state and you should be able to find an example addendum that way. Here's the one for VA (I'll also put the link in the description) -- imgur.com/a/VH4gx
Matt Leighton Mahalo Matt
This sounds great in theory but useless in practice, you can’t know that there is another offer on the table
I hear what you're saying. Technically if the seller uses your Escalation Clause, they have to show proof of the second offer. However, they could always just counter you at the top price and just throw away the Escalation Clause..I have mixed feelings on it
@@TheMattLeighton I know that the listing agent already has one offer and based on the price and pool of buyers in this price range more offers are coming. I've used an escalation clause several times in the past and won because of it. I always get a copy of the competing offer that capped the bidding. When I've lost then my buyer knows we went to the limit and appreciate that the escalation clause kept them from paying more than they would've had we got into a bidding war.
It is helpful in markets like the bay area. There are always at least 4-5 offers on the table, especially since inventory is so low