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The Escalation Clause
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When you’re making an offer on a home, especially in a competitive market, you may hear the term escalation clause. Here’s what it means and how it works: An escalation clause allows a buyer to automatically increase their offer price if the seller receives a higher competing offer. The clause states how much the buyer is willing to increase their offer above another offer and sets a maximum purchase price they won’t exceed. For example: A buyer offers $400,000 with an escalation clause of $2,00
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Escalation clauses can make the difference when bidding wars arise
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