If you've spent time seeking a new home in Montclair the current real estate market it isn't unusual to have lost a home you were interested in to another buyer. They may have offered better terms than you were comfortable offering. They may have simply offered more money.
The minimal supply of homes for sale has certainly left more buyers finding themselves competing for less houses! Your local marketing specialist is the best source for gaining an advantage in this marketplace.
In seeking your new home, you definitely shouldn't let yourself be spooked into losing your head and end up paying more than a house is worth. However, to make certain you avoid emotional reactions to an already stressful circumstance, you may want to consider adding this special caveat to any offer to purchase you are considering making.
This special caveat would be an escalation clause. An escalation clause may very well head off a bidding war that leaves you in an awkward position, and just may land you the home of your dreams without you having to walk through a nightmare to get there!
Here's how this would work in your favor when you add it to an offer to purchase.
By including an escalation clause as part of the original offer you make, you clearly signal to the seller that you intend to close on this transaction without wasting their time on endless back and forth while dealing in advance with any competing offers they may receive at the same time your offer is presented.
In practical terms, it would look like this:
- You offer X amount to purchase the home along with all other normal terms and conditions
- The specific escalation clause should state clearly that you will beat any legitimate competing offer by X amount up to the maximum you have determined beforehand based on market values and conditions including the actual appraised value
- Include language outlining proof necessary to determine a legitimate competing offer
Although an escalation clause should make your offer far more attractive to the seller, there is no guarantee of a sale until a fully executed Purchase and Sale agreement is completed at closing. Ready to bid on and win the home of your dreams?
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