The Hidden Dangers of an Escalation Clause

In real estate contracts, an escalation clause—sometimes called an escalator clause—allows a buyer to increase how much they’re willing to pay if a seller receives a better offer. On the surface, this can seem like a good option when you have a client who is determined to have their offer chosen in a seller’s market. Though legal, escalation clauses can result in some serious issues that may end up in a disciplinary case or worse, a lawsuit. Your Offer May Not Be a Binding Contract For offers that include an escalation clause, the sales price in the offer itself tends to be vague, and according to attorneys representing the Tennessee Association of REALTORS®, some courts may consider it a deficient contract. Even with a price cap, it would be up to the court to decide if the contract constitutes a firm and statuary offer. Your Final Price Could Be Higher Than Your Appraisal In Nashville’s booming real estate market, prices are known to increase significantly when multiple offers are on the table, oftentimes going beyond the appraisal limit. As a buyer’s agent, you’re responsible for making sure your client knows they will have to make up the difference (with cash), [...]

By |2017-06-07T20:35:52-05:00June 7th, 2017|Agent Blog, Agent Education, Blog, Consumer Blog, Real Estate Ethics|Comments Off on The Hidden Dangers of an Escalation Clause

5 Statistics You Can Share With Prospective Clients

By |2016-05-18T13:02:52-05:00May 18th, 2016|Agent Blog, Agent Education, Agent Productivity, Blog, Buying and Selling Tips, Featured Blog Posts, Marketing, Real Estate, Selling Real Estate|Comments Off on 5 Statistics You Can Share With Prospective Clients

The Most Common Real Estate Objections- and How to Handle Them

By |2016-04-05T17:16:46-05:00April 5th, 2016|Agent Blog, Agent Education, Agent Productivity, Blog, Buying and Selling Tips, Featured Blog Posts, Listings, Marketing, Real Estate, Selling Real Estate|Comments Off on The Most Common Real Estate Objections- and How to Handle Them

Should You Text-Message Your Clients?

By |2016-03-30T22:01:11-05:00March 30th, 2016|Agent Blog, Agent Education, Agent Productivity, Blog, Buying and Selling Tips, Featured Blog Posts, Lead Generation, Listings, Marketing, Selling Real Estate|Comments Off on Should You Text-Message Your Clients?

Gen Y- Taking the Market by Storm

By |2016-03-15T15:16:58-05:00March 22nd, 2016|Agent Blog, Agent Education, Blog, Buying and Selling Tips, Featured Blog Posts, Lead Generation, Marketing, Real Estate, Selling Real Estate|Comments Off on Gen Y- Taking the Market by Storm

Hard Time Blogging? This Will Get You Started

By |2016-03-02T15:20:46-06:00March 2nd, 2016|Agent Blog, Agent Education, Agent Productivity, Blog, Buying and Selling Tips, Featured Blog Posts, Lead Generation, Marketing, Selling Real Estate|Comments Off on Hard Time Blogging? This Will Get You Started
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