Escalation Clause


An escalation clause is a real estate contract that states that the buyer is willing to go a certain amount higher than the highest offer.  The clause can be constructed so there is an upper limit that sets the absolute maximum the buyer is willing to go.  This will prevent escalating the price such that it is out of your buyer's comfort zone.

Click here for an excellent article that goes into more detail and gives real world examples of escalation clauses.

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