Here’s a quick home buyer tip about The Escalation Addendum
In this market it’s very common for several buyers to compete for a single property. To help buyers stay competitive the Maine Association of realtors has created an Escalation Addendum.
This addendum essentially allows a buyer to bid up their offer price incrementally to a maximum amount over the next highest offer.
For example, if you knew you were one of several offers on a property listed at $275000, your escalation addendum could say you’ll pay $2000 over any other offer to a maximum of $295,000.
But look out – it’s entirely fair play to have a seller agent simply counter your offer at the highest amount of your escalation addendum.
If you and your buyer agent decide to use the escalation addendum as a competitive tool, make sure you know that there’s a risk that the seller agent can counter offer this way and you’ll have to answer quickly.
So, give thought to an answer ahead of time to make sure you’re ready.