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