Relocate to Wisconsin : "I'm sending an Offer With an Escalation Clause" said the Agent

"I'm sending an Offer With an Escalation Clause" said the Agent

 In these days of Thinventory in many parts of our market...multiple offers are the name of the sale...and we Thinventoryalways, as a courtesy, let every agent know that we have received more than offer and when the offers will be presented.  The agent can go back to the Buyer and has thhighest and beste option of countering their own offer to a higher price if they wish...or leave the offer they wrote as their "highest and best."  The decision is the Buyers to write and the Sellers to choose which works for them. The Sellers may choose one of the offers submitted...OR do a Multiple Counter. A multiple counter can mean that each offer received is sent a counter offer...Labeled MULTIPLE counter offer...and can each be countered for a different reason...the price, the  closing date,   the inclusions...no Buyer will now what the terms are for countering the other offer.

   Escalation Clause   Escalation clauses in our experience, are to some ceiling above the asking price.  The Buyer is agreeing to pay $X Dollars over the asking price up to $X when given proof by the Seller of  another legitimate offer.

    It seems that with a couple of offers this week....the mentality of Buyers has changed with Buyers believing that an escalation price...or offer...the BEST price is cash...regardless of whether it is at the list price, claiming to escalated but still below a shiny new list price....we are in their minds to the "CCash is Kingash is King" mentality.  If a quicker closing is included and that is the fondest desire of the Seller(s), that MAY be true.  Did the agent ask before writing..."What is most important to the Seller(s) ?"  No....they "knew" ....it had to be all about the money and not having to wade thru the financing contingency.  Many Sellers look at the Price as being just that...the price...they will get money whether it is cash or financed.  The "winner" is the agent who bothered to ask the question in our opinion....and echoed by our Sellers. 

   Before you assume...Ask...tailor the offer (if you can) to the Seller's desires....they make the choice of who gets the house.

    If you want to make the best choice for a Realtor in southeastern Wisconsin...Call the Hansons, we are honored to be of service.

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Comment balloon 13 commentsSally K. & David L. Hanson • February 16 2017 11:29AM

Comments

Buyers have to submit highest and best offer if they want home in my market.

Posted by Harry F. D'Elia, Investor , Mentor, GRI, Radio, CIPS, REOs, ABR (Real Estate and Beyond, LLC) about 1 year ago

I hope home buyers will read this post and learn.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) about 1 year ago

Great information here!  It's all cash at closing.  Knowing the "hot button" is the best way to position yourself for success. 

Posted by Brenda Mayette, Getting results w/ knowledge & know-how! (Miranda Real Estate Group, Inc.) about 1 year ago

Good morning Sally K. & David L. Hanson ,

It always amazes me when an agent is going to write an offer why they don't call the listing agent to find out what the seller would like..early or later close? A seller lease back? Always best to write a good offer in this seller's market. Just wrote an offer yesterday for my sellers on a home we have under contract with a cash buyer. Just got accepted because I called the listing agent and talked!

Posted by Dorie Dillard, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) about 1 year ago

Good morning Sally and David,

My buyers are armed with information and have the ability to give their best offer in this situation.

Make yourself an astonishing day.

Posted by Raymond E. Camp, Licensed Real Estate Salesperson Greater Rochester (Howard Hanna Real Estate Services) about 1 year ago

Good morning, Sally and David -- whenever possible when you can tailor your clients' offer to what the seller is expecting, you are more likely to find the best fit.   Good advice.  

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) about 1 year ago

Very well written Sally. The winner will be the best price and terms for the seller. I recently had an agent call to find out why her offer wasn't accepted. We never received it and it turns out she emailed to the wrong address....

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Condo & Home Sale Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) about 1 year ago

Good morning Sally and David. It is always prudent to ask. Finding out what matters is the best.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) about 1 year ago

Yes Sally K. & David L. Hanson asking is not like telling and wins hands down!

Posted by Ginny Gorman, Homes for Sale in North Kingstown RI and beyond (RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate) about 1 year ago

Thank you very much for sharing some of your successful business practices and your advice.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) about 1 year ago

The interesting thing, Sally and David, is here in NC you can't force a seller or their agent to divulge the terms of another offer. So these escalation clauses end up being meaningless.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (RE/MAX Executive | Charlotte, NC) about 1 year ago

Sally & David any time my buyers want to do an escalation cause, I reach out to the listing agent and to see how the seller and the listing agent feel about that... and no exaggeration 80% of the time sellers and listing agents do not like that...at least in my experience, Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) about 1 year ago

Good morning Sally and David.  Like you write, the key to getting an offer accepted is to have an idea of what is important for the sellers.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) about 1 year ago

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