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Montana Call Back Escalation Form
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Multi-State
Control #:
US-125-AZ
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Word;
PDF;
Rich Text
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Description
How to fill out Call Back Escalation Form?
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FAQ
Here is an example of a real estate escalation clause. Buyer offers to pay $ for the home, but if the seller receives a bona fide offer that is higher, buyer will increase the price to $ above the amount of the other offer. This is a very strong option for writing winning offers!
How to Structure Your Escalation ClauseThe original purchase price offer.The increments by which the offer escalates (example: $5,000)The maximum purchase price - keep in mind your pre-approval letter, because the maximum price should not exceed this (or be prepared to make up the difference in cash)
While an escalation clause can make an offer more attractive, it also shows the seller exactly how much you're willing to pay. You may come out with a better deal if you negotiate with the seller. The escalation clause also doesn't account for other points of negotiation.
This is the amount by which your purchase price will increase above the competing offers. For example, if your escalation amount is $3,000 and the competing offer was $300,000, the escalation clause would automatically increase your offer to $303,000.
Escalation Clause Example For example, you may offer $300,000 on a home with an escalation clause stating that you will outbid other offers by $5,000 up to $321,000. So if another buyer makes an offer of $305,000, your escalation clause means that you will pay $310,000 for the home.
Generally, escalation clauses and offers are communicated between the buyer's REALTOR® and the seller's agent. An escalation clause is triggered when the seller has proof of a bona fide offer from another buyer. This means that the offer is legitimate and enforceable. Essentially, a seller cannot make up another offer.
Using an escalation clause might give you an edge; or, it might just be table stakes. On the other hand, an escalation clause would be a bad idea if you can't cover the difference between your pre-qualified loan amount and the escalation price.
For buyers, escalation clauses are a useful tool to make their offer stand out in a competitive market. For sellers, they can be a great way to lock in a higher sale price.
Your real estate escalation clause should indicate:The original purchase price offer.The increments by which the offer escalates (example: $5,000)The maximum purchase price - keep in mind your pre-approval letter, because the maximum price should not exceed this (or be prepared to make up the difference in cash)
What is an escalation clause and how does it work? An escalation clause is language written into a purchase offer that automatically increases your purchase price by a certain amount above competing offers, until the offer reaches the maximum price you are willing to pay for the home.
