Escalation clauses have become the norm in the Seattle area real estate market, especially in the most desirable neighborhoods. They are are a boon for sellers but can be a bane for buyers. While the offer price is never the only criterion in evaluating an offer, it is the most important. With multiple offers, it is helpful to create a spreadsheet to compare all aspects of each offer.
Round 1: Multiple Offers without Escalation Clauses.
This is the real story of a multiple offer scenario. For the sake of privacy, the names of the buyers and the dollar amounts have been changed. In reality, there were four offers and two had escalation clauses. But what if there had been no escalation clauses? What would have been the outcome? The listing price of the home was $518,000. [Read more…]