As you may know, the RVA area is experiencing what is known as a “seller’s market”. We have around two months of supply in the real estate market; six months is considered an even or “normal” market.
As a Realtor representing a buyer, what options do I have when making an offer on a house that has has high potential for multiple offers?
The answer is: An Escalation Clause!
An escalation clause will allow us to make an offer for what the property is worth, based on opinion and comps (a competitive market analysis), but also let us increase our offer automatically! As an example, we make an offer of $200,000 for a home, because we believe that is a fair market price for the property. But, we are willing to pay as much as $210,000 for the same property. We can write an escalation clause, stating we are offering $200,000, but we are willing to increase our offer a set amount over the best offer received, in a set increment. If we make the $200,000 offer, we state we are willing to increase the best offer by $2000 (or whatever increment you want), to a maximum of $210,000!
I have successfully used this clause on a home. The listing agent has to provide the best offer on which we are escalating.
In this market it’s important to look out for our client’s interests. This is one way I can do that for you, in the right situation!
David J Hebel, Realtor
The Sanders Group of Hometown Realty
5326 Twin Hickory Rd
Glen Allen, VA 23059
Cell (voice or text): 804.672.8045