What is an Escalation Clause? | Ukiah Real Estate

I bet you've been wondering what an escalation clause is, well I have been too and then I gave it a goog, so I'm just gonna tell you what google said. Stay tuned if you want to hear my explanation and how I reiterated it from google. I'm just kidding! I literally just came up with that I don't even know why what's wrong with me. Okay, let's get started!

Hi, my name is Kasie Gray, I am your broker associate, and now I am a broker associate in Ukiah. Today we're talking about an escalation clause with the market and the condition. It is a lot of people are offering escalation clauses. So I'm gonna explain what it is so you can understand what an escalation clause is because everybody wants to know what they are because like does anybody really know what they are I don't. I'm just kidding! I don't know why I keep saying that because I do know what they are and it's it's just funny.

So if you've ever shopped on eBay there's a way that you can set your bid to increase every time. Someone else makes a bid so that's essentially what an escalation clause is so in your offer you have the right buyer to purchase a house for five thousand dollars over the highest offer you know pending they see the written offer with the written pre-approval or bank statement.

So what this essentially does is eliminates you know the counter offers so say your offer is $450 and you are willing to go up to $475. You'll write that into your offer so if someone else does offer $470 then the listing agent knows that you're willing to go up to $475.

This is essentially what an escalation clause is it's pretty easy and standard to write into your purchase agreements. If you have any questions about it just hire me as your buyer's agent. If you are not in my area give me a call and I can refer you to someone amazing!