Recent Experience - Seller Hedging their Bet
If you're familiar with price escalation clauses as a seller, you may know how powerful they can be. Price escalation clauses tip the hand to a seller of what a buyer is actually willing to go up to if another buyer has a higher offer.
➡️ In our present market, there may be 1 super aggressive buyer willing to go exponentially over ask, while other buyers stick to asking price. If there are 2 other offers at asking price, how can you get the aggressive buyer to invoke their escalation clause to the max if the other buyers have much lower prices.
➡️ In a recent multiple offer situation my seller was able to get the aggressive buyer to max out their escalation by doing one strategic tweak. Here's the situation.
▪️3 days on market
▪️2 offers at asking price
▪️1 offer willing to escalate 15K over asking
➡️ Once we had enough sample size we decided to hedge our bet.
Knowing we weren't getting more offers and there was also no more showings scheduled....
➡️ We went to escalating buyer and stated "if you give the seller your max escalation, we won't go back to any other offers AND we will cancel all of our future appointments"
🔦Since all other options were exhausted, there was nothing to lose. It's an aggressive move and if you as a seller like to take on some risk to gain a favorable reward, this is a strategy you may want to try, if you ever find yourself in a similar situation. Oh yeah....Buyer agreed and everyone was happy.