There are several considerations that buyers should keep in mind before adding an escalation clause to their offer that automatically increases the bid by a specified amount in a multiple bid situation. They should receive documentation that the seller has received another contract offer that is higher than theirs, ensure that they will qualify for a bigger loan if their offer is escalated, and include a contingency allowing them to back out of the contract if the lender’s appraisal is lower than their offer. Additionally, they should not proceed without contingencies for home inspections and obtaining financing. | Read More