Escalation Clause in Bay Area

[Anonymous]

In the DMV we used an escalation clause when buying our house. Is this a thing in the Bay Area? We are having such a hard time determining what to bid on houses without going $500,000 over asking. Prices seem so variable. Anyone know if it is legal in CA and/or have experience including it in their offer for a house? Our realtor is unfamiliar with it and said it might be a turnoff for selling agents. Thanks!

[Anonymous]

I moved to the Bay Area from DC. When I purchased my condo in DC I had an escalation clause. It does not exist out here in the Bay Area. Just purchased a house here. It's a bummer. You gotta just pick a number, basically the most you can afford.

[Anonymous]

Anonymous wrote:I moved to the Bay Area from DC. When I purchased my condo in DC I had an escalation clause. It does not exist out here in the Bay Area. Just purchased a house here. It's a bummer. You gotta just pick a number, basically the most you can afford.

+1 yep, former Bay Area resident.

I'm sure you've heard of some houses going for $500K over asking. Back in 2000 when I sold my home there, all the bids were over asking by $100K or so. Again, this was back 2000, for a 1700sqft house. It's way worse now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I moved to the Bay Area from DC. When I purchased my condo in DC I had an escalation clause. It does not exist out here in the Bay Area. Just purchased a house here. It's a bummer. You gotta just pick a number, basically the most you can afford.

+1 yep, former Bay Area resident.

I'm sure you've heard of some houses going for $500K over asking. Back in 2000 when I sold my home there, all the bids were over asking by $100K or so. Again, this was back 2000, for a 1700sqft house. It's way worse now.

oh my.. it was 2010 not 2000. I keep thinking we are still in the 2010s. lol

[Anonymous]

OP here. What a bummer to hear. One of the houses we just bid on went for $800,000 over asking. Guess we will continue to lower our standards or rent.

[Anonymous]

We recently sold a house in Berkeley. There were 9 bids. One of them increased their bid unprompted. We countered the three highest, which were all within $100k of each other and ended up selling for $1 million over asking. We were totally shocked.

[Anonymous]

Anonymous wrote:OP here. What a bummer to hear. One of the houses we just bid on went for $800,000 over asking. Guess we will continue to lower our standards or rent.

Rent until the bubble implodes.