Sharp or Relative Bid Offers | Escalation Clauses

Sharp or Relative Bid Offers | Escalation Clauses

Keller Williams Policy is for an Agent NOT to write “relative bid” or “sharp offer” language in an Offer. This is also called an “Escalation Clause.”

EXAMPLE:

1. “Buyer willing to pay $1,000 over highest offer presented to Seller.”
2. This leaves Buyer open to accepting a sales price that may be far beyond the Buyer’s means.
   1. What if another offer is $100,000 over list price?
   2. With this type of language is in the Offer, then Buyer has already agreed to pay $101, 000 over the list price even if they can not afford to go that high.

Refer to CAR Legal Q & A “Escalation Clauses.”