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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I would advise them AFTER I've confirmed whether the listing agent acknowledges that the sellers will consider an Offer with an Escalation Clause. (Some don't here - the Commission doesn't encourage it and many agents don't know how to utilize them. Our area brokerage attorneys have written them for the agents to use and they have been quite effective for many buyers.)

Advise them of your conversation with the LA as well their options and proceed as directed by your buyers.

Aug 28, 2018 07:44 PM
Rainmaker
3,241,809
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Explain the sellers request and share what you believe will be winning strategy and let the buyer decide. 

Aug 28, 2018 07:27 PM
Rainer
222,527
J.R. Schloemer, CRS
Kentucky Select Properties - Louisville, KY

If they want the escalation clause I will let them have it. I do not want them to do the best & final only to be way out of the park. I also do not want to not use the clause and they lose the house by $1,000 they were willing to pay over the closing price.

Whatever they feel comfortable with is what I would have them go with.

Aug 28, 2018 07:07 PM
Rainer
136,963
Richard L. McKinney P.A.
Atlantic Shores Realty Expertise - Port St Lucie, FL
For Results that MOVE you on the Treasure Coast!

I would present the offer as the listing agent requests.... the buyers highest and best offer. 

Aug 28, 2018 08:08 PM
Ambassador
2,344,489
Fred Griffin presently on Leave of Absence
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  Offer their highest and best.  

   There are lots of houses for sale in Tallahassee in every price range.  If the Seller doesn't counter, we can move on to the next one.

Aug 28, 2018 07:46 PM
Rainmaker
984,759
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

In here escalation clause often interprets buyer is not serious. It is not $1K or $5K that makes the difference. Often accepted offer is way way way over what your client can afford or a clean offer.  No loan, no inspection, remove all the contigiencies at the time of making an offer. Free rent back. 

Aug 28, 2018 07:33 PM
Ambassador
4,056,637
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Escalation clause can be one way of getting to the best and final, sellers may disagree though. 

Aug 28, 2018 07:20 PM
Rainmaker
911,242
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

The escalation clause is fraught with abuse unless you structure it correctly; best offer period.

Aug 28, 2018 08:42 PM
Rainmaker
1,024,297
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Our Brokerage does not accept escalation clause.

Aug 28, 2018 08:33 PM
Rainmaker
2,942,512
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

As a listing agent, i am frustrated when buyer agents are asked for highets and best and play games like that. Often that buyer will not be getting their offer accepted. It is not always price but contingencies, inspections, closing date and type of mortgage vs cash

Aug 29, 2018 04:51 AM
Rainmaker
2,975,713
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

If the seller has indicated how they want to receive offers, I suggest you follow those instructions if you want a chance of getting the property. What's so complicated about best and final? The buyer needs to put his money where his mouth is. I've represented sellers who have decided on a strategy to evaluate multiple offers and when they receive offers that don't fall in line, they tend to toss those offers into the reject pile.

Aug 29, 2018 04:39 AM
Rainmaker
2,896,275
Richard Weeks
Dallas, TX
REALTOR®, Broker

Agents in Texas are not allowed to write an escalation clause; therefore, I would tell them to speak to a real estate attorney.

Aug 29, 2018 04:30 AM
Rainmaker
651,711
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

The “escalation clause” in not often used in our market. I have never used one. I am not sure that I have ever been on the receiving end of one…in 20 + years.

Isn’t “highest and best” the max that an escalation clause would offer? Why would a seller not automatically counter to the top of an escalation clause. The buyer has stated that they are willing to pay that amount. So…write that up as highest and best.

Aug 28, 2018 10:01 PM
Ambassador
2,849,880
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I generally explain stragies to buyers and let them make the decision. But in a competitive market price isn't always what the seller is looking for

Aug 28, 2018 08:46 PM
Rainmaker
733,341
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Follow directions while explaining to your buyer. Highest and best is highest and best having an escalation clause indicates highest and best was not presented.

Aug 29, 2018 06:48 AM
Rainmaker
4,796,551
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I would probably advise they submit their best offer without an escalation clause.

Aug 29, 2018 05:38 AM
Ambassador
3,981,962
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Since my market is so limited by appraised values I would suggest submitting the best offer the first time.

Aug 28, 2018 08:15 PM
Rainmaker
4,314,873
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

I agree with Michael Jacobs 

Aug 28, 2018 08:11 PM
Rainmaker
442,931
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

All things are "negotiable" in real estate and so I would do my best to consult and advise my buyer on all the options and then let them make the decision based upon the knowledge they were given.

 

Aug 28, 2018 07:40 PM
Rainmaker
1,027,287
Valeria Mola
SIB REALTY - Sunny Isles Beach, FL
305-607-0709 SIB Realty

Submit their best offer and go from there.

Aug 29, 2018 07:52 PM
Rainmaker
2,764,167
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

I would advise that I will talk with the listing agent.  An escalation clause could knock a buyer out of the running because not all agents understand them or know how to use them effectively. I would then make my recommendation based upon my discussion with the listing agent. Much the same as Debe Maxwell, CRS would do.

Aug 29, 2018 07:33 AM
Rainer
139,277
Byron K . Jones
Coatesville, PA
List Today - Sold Tomorrow!

Plenty of Good Answers Here, I Perfer Seeing what My Buyer can do that the Seller "Needs" or "appreciates", No Contingenices, Maybe Rent back for short Period of time .... they have a value but not on the sales price

Aug 29, 2018 06:07 AM
Rainmaker
3,168,586
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Offer highest and best based upon the comps! Then roll the dice and be prepared to move to the next table!

Aug 29, 2018 05:55 AM
Rainmaker
1,505,617
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

If there isn't another offer I would ignore the listing agents giant ego.

If there was one, I'd use the clause. Object being you want to win or what?

Aug 29, 2018 05:21 AM
Rainmaker
1,450,662
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

Submit the best offer your buyer can do.

Aug 29, 2018 08:48 PM
Rainmaker
667,316
Sharon & Bruce Walter
Keller Williams Realty Lafayette, IN - Lafayette, IN
West Lafayette homes for sale

Funny you should ask as I just had this happen to us!!!

This house went on the market on Friday and the listing instructions and follow up phone call verified that all offers should be highest and best and they would be presented to the seller at noon on Monday.  From talking with the listing agent I  knew that three offers were already in by Saturday morning( I predicted nine total offers-LA said 13 came in by presentation time) and advised my buyer this would be a great opportunity to use our escalation clause.  The listing agent has great integrity so I trusted her to handle everything in an ethical manner.  I explained the pros and cons of the escalation clause and the buyer wanted to use it.  It got us the house just $250 over the best net offer and yet was $6,000 under the maximum cap. 

The escalation clause is a great tool as long as the buyer understands the pros and cons.   The ultimate decision belongs to the buyer if the seller/and or listing agent do not respect the terms of the addendum, and disregard the final escalation price and go to the cap.

If the buyer submitted his gut feeling offer he would have lost the house.  By using the escalation clause he got the house but did not pay the additional $6,000 up to his cap.  It worked well for the buyer!  He was very happy!   

Aug 29, 2018 10:49 AM
Ambassador
1,612,049
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

You obviously are not in real estate otherwise you woul;d be talking to a broker.

Aug 29, 2018 07:09 AM
Rainmaker
5,264,692
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Submit your best offer.

Aug 29, 2018 05:49 AM
Rainmaker
4,431,983
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Call the listing agent and ask

Aug 29, 2018 05:00 AM
Rainmaker
2,704,337
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Many great responses.

Aug 28, 2018 08:35 PM
Rainmaker
1,211,314
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

No escalation clause.

Aug 29, 2018 03:20 PM
Rainmaker
729,945
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Here, escalation clauses don't mean much. There is no requirement that the seller has to accept the highest offer price. Submit best offer, and don't waste a lot of time on an escalation clause.

Aug 29, 2018 12:43 PM
Rainmaker
1,069,564
Gary Frimann, CRS, GRI
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

I don't think I'd chase that one.  People already feel they pay too much, and I'm pretty sure they think they will too.

Aug 29, 2018 12:31 PM
Rainmaker
983,278
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

If their interest is limited then use the escalation clause. If they truly want the home then they'll need to put in their best offer and hope that it is.

Aug 29, 2018 10:34 AM
Rainmaker
4,870,363
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

I like Debe Maxwell, CRS answer....

Aug 29, 2018 07:50 AM
Rainmaker
4,021,900
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I agree with Debe, some don't like them.   Best of luck.

Sep 03, 2018 06:46 AM
Rainmaker
3,977,611
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

A call to the listing agent would be in order

Aug 30, 2018 06:37 AM
Ambassador
4,298,246
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

I prefer the escalation clause - however, if the listing agent insisted on the highest and the best, write that way.

Aug 29, 2018 10:04 PM