Home buyers often prefer to start looking first at the lower priced homes because they want to see the best possible deals.
Buyers want a good deal, so they will check out the bargains to see if they are attractive, and they can always go see higher price properties and offer more later if necessary. Buyers can sometimes find money to go up in price if the cheaper properties are too much of a compromise. But they never want to waste money by offering too much. #escalationclause #millsact
When a buyer finds a property they like, additional items sometimes included by more advanced buyer’s agents in the offer are: Letter to seller, letter from a reference, escalation clause (based on the buyer’s agent conversation with the listing agent), appraisal clause, inspection (advanced agents will make sure it is focused on safety and health), post occupancy, also based on a conversation with the agent.
The escalation clause is often used in today’s market because the good deals go very quickly, often with many competing offers from other buyers.
Buyers want to offer the lowest amount that they can and sellers want the most amount they can get; but in a competitive market where there may be multiple offers, buyers may lose out of the home they want if they are outbid by another buyer.
The option sometimes used in today’s hot markets is the escalator clause of a real estate contract. An escalation clause states how much the offer will go automatically above the highest offer received by the seller from other buyers. It also states a ceiling price that it will not go over. Besides being a faster ways to negotiate, the escalation clause reduces the chance that a buyer will lose out to a competing higher offer from another eager buyer.
Before using an escalation clause, the buyer’s agent should ask the listing agent if multiple offers have been received, or if they are likely to be multiple offers received before the seller choses whom to sell to.
Also, the buyer’s agentmust be able to confirm and validate any competitive bids that are received. A down side is that, by including an escalator clause with an offer, the buyer will show their hand as to how much the buyer is willing to pay. Some sellers may thus raise their expectations of how much they demand for the property.
Some sellers do not like escalator clauses and may reject them. They would rather have a potential buyer offer their highest and best offer from the beginning.
In addition to powerful tactics in a purchase offer, the buyer’s agent also matters: Advanced buyers agents know that the listing agent would like to know why it is an advantage to work with the buyer’s agent, such as years in the area. Buyer’s agent may include in the offer reasons why the buyer’s agent will be extra likely to help get the transaction done successfully. The Corey Chambers Team, for example, has the unique ability to make transactions successful because the team gives the buyer a no-risk guarantee, and therefore the buyer is more likely to perform and to be satisfied with their purchase.
Another way to save money on a beautiful home with amazing character is to look at Mills Act historic lofts with savings on property taxes. Get a free list of Mills Act lofts for sale. Fill out the online form:
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Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.
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