Blog Stories The Escalation Clause

The Escalation Clause

By Sean Patrick O'Feery, May 19, 2021

Not every listing agent or seller is willing to work with an escalation clause, but when there is an opportunity, we are finding success with them.

 

Here is a real world example-

  • My clients are looking to buy a home that is super dreamy but don’t want to over pay.
  • The comparable sales from six months ago don’t hold up to the market we are in, the pace is too fast for comparable sales to really track with, so the Comparative Market Analysis we would usually use to find our price is less helpful.
  • There is always the question of, ‘what % over list do we need to consider to be successful?’ That would be an easy answer if every home for sale held the same philosophy on pricing. If that was the case we could develop a metric like X% over/under listing price will do the job. The truth is, sellers and agents set the price of a home together and there are many ways to come to  a list price and every home on the market gets a varying amount of interest and therefor offers to compete with my clients offer.
So, what can we do?

An escalation clause can be a great tool in this situation. It simply says, this buyer will beat any competing offer and top it, for example, by $5000 up to $XXX,XXX.  In an effort to start the sale in good faith, you also stipulate that this buyer receive from the sellers agent a redacted page one of the competing offer.

 

There is a bit more to it, but that is the basic outline and, in this case, it worked and our clients are the happy owners of the super dreamy house!

If you’re looking for a buyers agent that utilizes all the tools in this competitive market, don’t hesitate to call!

Sean O'Feery

Broker | Earth Advantage | ADU Specialist | OR

Hello my name is Sean Patrick O'Feery,   I am thrilled to give you the attention to detail and service that you deserve from a skilled, motivated and intuitive Real Estate agent.  I love this work and will make your purchase or sale to be as smooth, rewarding and exciting and it should be.
  • My business has been built on referrals; over 95% of my clients come to me from other happy clients, friends, family or trusted lenders.
  • Integrity is the most important component of my business.  My reputation is a reflection of the integrity I bring to my work and I work hard to earn it.  You can count on me to give you my honest and informed opinion that will serve you first.  My fiduciary responsibly is to you; my client and I hold this ideal to the highest standard.
  • Communication is essential!  I will provide you complete and timely information so you can make good decisions.  I will keep you informed to the next step and beyond at every point of the process from the introduction meeting to the closing and beyond.
  • Negotiation skills in this business are a must; I will be a fierce advocate for you throughout the process.
  • A broad knowledge of homes and their conditions. Whether it is a 1909 Craftsman or a LEAD Certified new construction it is important to have experience of what and where to look for quality or concerns. We have our own experience in remodeling homes and maintain good relationships with inspectors and contractors.
  • I am always seeking to refine my practice, learning new tools or to solidify my knowledge of our market, neighborhoods and the inventory.  You can count on me to be informed, skilled and up to date with the latest search and marketing tools.
  • I want to maintain our relationship to continue and to be a valuable resource for you.  I love to be of service.
As your buying agent: I am dedicated to having you feel cared for before, during and after the purchase.  I meet clients where they are at and find out how I can provide the best service. Every purchase is individually tailored to each buyer. My priority is to find the home you love in the best condition for the best value. As your selling agent: I am dedicated to having you feel cared for before, during and after the sale. I will work closely with you to identify your priorities. A complete marketing plan supported by the brokerage best known in Portland for marketing tools, skills and style that will serve you well. My consistent focus on every sale is to get you the best return from the most qualified buyers for the sale of your home. My neighborhoods: I live on the East Side and know the areas from Gresham to the inner East Side like a well worn glove. I love to work, shop and spend time on the West Side. I know the nuances of the West Side communities from downtown to Hillsboro. Oregon City is a great community and Tigard is no stranger. For me, it’s about finding what is best for you in the greater Portland area. I am happy to introduce you to the unique communities that make this area so great! If you want to know a little more about me- I love, live and breathe Real Estate. & I built a home with my dad. I know what a quality build looks like and some things to watch out for. The inspection period in sale or purchase of a home is an opportunity for me to shine. I have recently remodeled two homes with my wife and we own a couple of great rentals. Maintaining great relationships with vetted contractors is a must in my life and work.   I spend winters watching the snow reports of Baker, Steven’s, Crystal, Brundage, Meadows and Mt. Bachelor. Photo is circa 1993 coming down from Camp Muir on Mt Rainier… in Oakley Blades.   This is my wife. This is my child. My pets. My family. If you would like genuine, focused and sincere representation in the sale or purchase of your home please call or email, providing excellent service has been a long-standing source of pride. Sincerely, Sean O’Feery (206) 795-0703 sean@livingroomre.com
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  • T: 206-795-0703
  • F: 503-961-8224
  • sean@livingroomre.com

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