An escalation clause is incorporated into a purchase offer for a home that is intended to make sure a buyer is the highest bidder. It is typically used when a buyer and their real estate agent strongly believe a house will receive multiple offers. An escalation clause can be a useful tool, but it has drawbacks for buyers and sellers alike.
4:00 What is an escalation clause?
7:07 Be weary of a poorly described escalation clause? For example, what happens when escalation is triggered? Will offers be shared with other buyers?
10:52 Determining what's important to you? Deposit? Highest price or do you need the money now?
13:07 Realtors beware: Panic buy issue and escalation clause.
15:56 Including indemnity provision in clause to protect agent.
19:13 Confidentiality while under contract.
21:36 Right of first refusal.
23:05 Escalation clause can help both buyer and seller.
24:51 When to reach attorney when drafting addendum?
27:20 What happens when there are multiple escalated offers?
30:51 Cost to work with attorney on escalation clauses.
33:30 Is it better to make a larger offer first?