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Is It Worth the Gamble?

By
Real Estate Agent with CR Property Group, LLC

                                                                                                              

Is it worth the gamble when a house has just been placed on the market, and you as the selling agent can show your buyers justification of value based on local comparisons, not to have your buyers offer full price?  I don't think so, but in their eyes it sometimes is, as they don't want to part with their hard earned savings.

Many buyers have to live and learn and lose a couple of places as they are like everyone, they want the best bang for their buck.  I recommend if they do want to make a full price offer, then put an escalation clause addendum in with the agreement of sale.

I am not sure if all areas in the country allow this, but an escalation clause states that your buyer is willing to pay x amount of dollars over and above any other offer that comes in, up to a maximum selling price of x.  There is good and bad about escalation clauses because if the seller does not receive any other offers along with yours, they now know what you are willing to pay up to, and may counter back at full price.

If your buyers truly want the house, it is an ideal way to go.  If the seller is motivated, they will either take the reasonable offer or counter back mid way between the listing price and the offer.  If the buyers do lose the property because of being to conservative, they will know better next time, as not to have such an emotional roller coaster ride.

Posted by

Country Home Real Estate, Inc.

1911 East Market Street

York, PA. 17402

717-755-1800

Don Spera, GRI, CSP, ABR, Associate Broker

717-577-8981 cellular

donspera@comcast.net

www.donspera.com

 

Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

That is so interesting, I have never heard of this but it should work.

Apr 07, 2010 04:05 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker

The Texas Real Estate Commission has advised Texas agents that esculation clauses are not to be used.

Oct 17, 2013 09:56 PM