Answers by Marty Griffith

An escalation clause isn’t a trap. It’s a genuine tool used by savvy agents who represent serious buyers that don’t want to over pay for the property. It requires full disclosure. Meaning, in order for the seller to participate in the escalation they must show evidence of the competing offer in writing. This is then followed by the option for the buyers to apply the escalation clause to win the highest and best offer. At which point buyers can choose to move forward or not. Generally, the clause exceeds the highest offer by a few thousand or more. It works well in highly competitive markets with one caveat. The sellers agent has to understand how it works and the seller has to be willing to accept it.