How Escalation Clauses Work and What Home Sellers Should Do With Them | Episode 107

“Sometimes an escalation clause is one of the most revealing pieces of information a buyer will ever voluntarily give you.”

https://youtu.be/m2aphTz93FY

A buyer offers you $500,000 for your house, but their escalation clause says they’ll go as high as $550,000.

They just told you there could be another $50,000 available.

Now what?

Do you wait for another offer to trigger the clause? Counter them? Ask for their maximum? And what happens if you push too hard and lose the buyer completely?

In this episode of Talking Realty, Glen breaks down escalation clauses from the HOME SELLER’S side: what they mean, how the math works, what buyers are really telling you when they include one, and how to use that information without blowing up a good deal.

You’ll learn:

How an escalation clause works and the three numbers every seller needs to identify

Why this can be some of the most valuable information they voluntarily give you

How competing escalation clauses can trigger one another

What to do when you get an escalation clause but don’t have another offer to trigger it