SPREADING CHEER! One of the best gifts that Santa Clause is delivering to everyone this year is a healthier real estate market. Hooray Santa! Most experts now agree that we have turned the corner from the past 6 years of decline.
Our local Portland, Oregon market is experiencing inventory shortages in the mid to lower price ranges. Prices are increasing for sellers in certain price ranges and locations. Multiple offers are common. This inventory shortage can make it more competitive for buyers.
“TIS THE SEASON FOR THE ESCALATION CLAUSE? Because properties are receiving multiple offers, some Realtors may advise their buyer clients to include an addendum with their offer that is called an “Escalation Clause”. This addendum states that the buyer’s offer price will automatically increase above any competing offers by a specified amount (usually $100-$1,000) up to a maximum purchase price offered. Not all Realtors recommend this technique and buyers should consult with their Realtor and real estate attorney.
For a peak at a sample of a blank escalation clause look below.
To track Santa’s delivery schedule on Christmas Eve…. click: HO HO HO
All my best to you and your families for a fun holiday season.
* Buyers should consult with a real estate attorney before using an escalation clause in their offer to purchase.