Escalation Matters! The Art of Winning in Multiple Offer Situations
Last week, one of my buyers wanted to see a brand new listing in a popular Camas, WA neighborhood. The home, located in Crown Park was priced right - in fact, right for multiple bids. When I called the owner to set up an appointment, she sighed " Oh my, I have one at 9:30, 11:00 and this afternoon at ---, I have a feeling this is only the beginning." She was right.
My buyers have been looking for investment opportunities for quite sometime, but recently got serious about their efforts. We set up an appointment for 10:30 AM, and the property fit the criteria. Great neighborhood, good condition, family-friendly and highly desirable as a rental.
Naturally, we wrote up an offer immediately. I recommended using an Escalation Clause - the document requires the listing agent to submit evidence of a determining offer, therefore I feel comfortable using the form. We capped the offer at $10,000 over the listing price ( from recent comps) and offered $500 increments more than competing offers.
The rest of the offer was solid - no unusual contingencies and proof that my buyers have the financial muscle to perform. I always include a cover letter with my offers, outlining the details and strength of the contract. Still, there is no guarantee in multiple offer situations. And, we had two days to wait.
The Art of Winning an offer in a competitive Camas Real Estate market.
Yesterday, I got the call. "Congratulations," said the listing agent, "Your clients offer has been accepted, well done Debbra." Woo hoo! A properly written Escalation Clause doesn't always guarantee a win, but it when it works, it works well. The important considerations are as follows:
1. Take the time to do the research - make sure the offer does not exceed the recent comparable sales history.
2. Cap the offer.
3. Offer increments that have some weight - a dollar, or twenty dollar increase over a competing offer, is pretty weak. ($500 to $1000 is good)
4. Even with the research of recent sales, make sure there is an appraisal addendum included. This gives the buyers a chance to opt out if the sellers choose not to make price adjustments if the valuation comes in lower.
5. This is "not the time" to ask for extras. Remember, the best "net" is going to win the game. In multiple offer situations the sellers are in the catbird seat.
Carl Group, Serving Clark County, WA
As an EcoBroker, I combine my
love of nature, people and the planet with my job as a Realtor®,
that way, I can help you live in a more beautiful, comfortable and
healthier environment, and save you money. Let me be
In addition, my passion for the Northwest lifestyle and our area's many neighborhoods ensure you a great selling or buying experience.