Here’s what an escalation addendum is and how it can be used.
What is an escalation addendum, and how is it used? In a competitive real estate market, a buyer can use an escalation addendum to make sure they aren’t outbid for the home they want to purchase. For example, if a home is priced at $500,000, and the buyer is willing to pay up to $550,000 but doesn’t want to offer that immediately, they can add an escalation addendum to how much they’re willing to bid. In this example, they may say they’re willing to pay $1,000 more than the highest offer up to $550,000. The beauty of the escalation addendum is that the listing agent is required to disclose the terms of the offer that cause the escalation and send a copy of that offer.
If you have questions about escalation addendums or any other real estate matter, please don’t hesitate to contact me via phone or email.
