What is an Escalatory Addendum?

Category: Writing a Winning Offer

The escalatory addendum is an addition to the contract that states the Buyer is willing to pay a certain amount over the highest offer the seller has received, up to a certain amount. 

For example, $400,000 list price, offer is at $400,000 and the seller has multiple offers. Your escalatory addendum could read that you are willing to pay $1,750 above the highest offer, up to $410,000. If the highest offer was $405,000, your offer becomes $406,750. If the highest offer was $415,000, your offer would go only as high as $410,000

Thomas Scott, REALTOR
Thomas Scott REALTOR®, GRI®

Thomas Scott, REALTOR
Thomas Scott REALTOR®, GRI®

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