Updated almost 10 years ago on . Most recent reply
Escalation clause with offer
I'm looking to buy a rental property in the Boston area / north shore which is a very competitive market right now. It is definitely a sellers market and difficult to not get outbid on everything you offer on. I'm considering putting in an escalation clause with my offer on a property that's listed at $400,000. My escalation clause would go up to $430,000 in increments of $5000. Do you think adding an escalation clause is a good/bad idea. I'm concerned that it possibly could weaken the strength of my offer in a situation where there are several good offers. I feel that the property is underpriced and will easily go over asking. Would it make more sense to just bid 425-430 straight up?
Most Popular Reply
I'm responding with my broker hat instead of my investor one. Instead of doing what's expected why not come right out of left field and do a live offer presentation? As you know people tend to work with those they know and trust. So run your numbers every which way to Sunday. Know them inside out and backwards and put together a strong offer. Request to present it live and turn on the charm. I think you will be pleasantly surprised.