Reply to Escalation Clause versus waiting to make a counteroffer?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Escalation clauses are for suckers. That gives the seller an incentive to wait as long as possible to shop for better offers. It is better to make a good offer upfront and give them a short deadline to decide like 24 hours. If they are not willing to do that you would have gotten screwed using an escalation clause anyway, so just move on and find another property. [/quote]

My agent advised me against using short deadlines when buying. However, as a seller, I have to admit that it probably would have worked on me when I sold this past summer. I was very uncertain about the value of my house and anxious to be done with it. Thinking back, there was a number that I would have accepted if it came in on the first day with a deadline. Over the next few days, lots of bids came in and I ended up getting 23k more than that number.[/quote]

These strategies sometimes work and sometimes don't, depending on the seller. My nephew got a place by offering a little below asking with a 24 hour deadline when it first came on the market.

My sister and her husband got a place by making an offer at list price with a 24 hours deadline within one day of it coming on the market.

We didn't even respond to someone who gave us a lowball offer with a 24 hour deadline. It really depends on the micro market and how badly the seller wants to sell quickly vs. wait for a better offer.[/quote]

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