Reply to Escalation Clauses- Bidding wars

Forum Index » Real Estate

Reply to "Escalation Clauses- Bidding wars"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]Maybe things are different now, but when we bought our current house eight years ago, there were enormous crowds at every open house and very clearly multiple bidders for everything. On one house, we went to the very top of our escalation clause and were the sixth-highest bid in the end. When we sold our previous house, around the same time, we got five bids, all with competing escalation clauses.

It’s possible that some agents in some cases might be ginning up straw bidders to push escalation clauses up, but the risk/reward calculus seems off to me, aside from the fact that I know many houses really do get multiple bidders. [/quote]

Exactly! In certain markets, escalation clauses go ridiculously high.  We had friends list house for 3 days (weekend with open house) at $1.4K, they got 15 offers and sold for $1.85M (and they had purchased the home 7 years before for $850K). 
We also got out "escalation clauses" on a home.  We were willing to go up to 250K over (original price was $1.4M) and we got into a bidding war/escalation clause.  The other buyer got it, and supposedly were willing to go much higher than it went (for some very specific reasons).  We happily walked away[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics