Life in Portland

Urban Nest Agent Insight: Munir Henry on Reframing Escalation Clauses

Munir Henry - Munir believes that being Realtor is about much more than houses. It’s about the people.

Munir Henry - Munir believes that being Realtor is about much more than houses. It’s about the people.

Reframing Escalation Clauses With Urban Nest's Own Munir Henry

In this series, we share home buying and selling advice, insight, and trends from our esteemed agents that keep their fingers on the pulse of Portland's real estate market.


Sometimes buyers ask about using escalation clauses as an offer strategy -- this is where you offer a base price and then offer to beat a competing offer by a certain amount up to a max price -- but many often worry that they're tipping their hand to the sellers by letting them know what they would really be willing to pay. 

There is a chance that the seller would counter the buyer at their max price, without a competing offer being present. 

However, I like to reframe this idea as a chance to 'get the house for less.' For example, say a buyer was going to offer $375k on a house with no escalation clause. Using this strategy, they could instead offer $350k and promise to beat a competing offer by, say, $5,000, up to a max of $375k. 

This leaves them no worse off than if they went with the original offer with no escalation, but gives them the opportunity to possibly get the house for less.