Beyond what it is, should you use it in your offer to purchase a home? As a REALTOR representing a Buyer, we can get pretty excited about the opportunity to utilize this tactic. Also known as a “Sharp Bid”, an escalation clause is used in the circumstance where multiple offers are highly likely. This likelihood is usually generated when you see a Listing that states something to the effect of, “All offers to be reviewed on Monday at 5pm” or the property has been priced below market. The intent of this competitive bidding strategy is usurp all other offers by offering a $dollar amount (usually $100 to $1000) above the next highest offer received by the Listing Agent with a cap “not to exceed $dollar amount.” I usually recommend that we request proof of the highest bid.
If you’d like to learn more, please don’t hesitate to reach out.