Patricia Kennedy,  Home in the Capital (RLAH Real Estate)

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Mimi Foster
Falcon Property Solutions - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Ok - I love this question. We had a fabulous lawyer who wrote most of our real estate law in Colorado. He, unfortunately, died in a plane crash. After he died I watched many of his videos, one of which was MYTHS that Realtors believe. He said:

 . . . there's this myth that a Listing broker can't tell a subsequent Buyer's side what the current offer amounts are. Of course they can, they just have to ask their Seller if it's okay. But each of those Buyer's offers aren't confidential and you can't make them confidential. And if you're really helping that Seller, you should be turning to that Buyer and saying, 'I have three at this price, and if you can beat it, then you're gonna to be the one who wins.'

I now use this approach in multiple offer situations. I give them all the same information - The highest bid right now is $387,000 - $17,000 over asking price. Now bring us your highest and best. THAT way, no one is trying to hit the bull's eye but not knowing which wall the target is on. Not trying to guess if $10,000 will do it but willing to stay in the game. And, the ones who don't want to pay that much don't waste their efforts.

May 02, 2016 05:25 AM
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Liz and Bill Spear
RE/MAX Alliance 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Alliance Cincinnati & Dayton suburbs

Pat, I don't think most agents in this area even have a clue about escalation clauses.  Tried to use one a couple of years ago and just couldn't get the other side to get a grip on what it meant.

May 02, 2016 06:56 AM
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Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Highest and best in my market.

May 02, 2016 12:20 PM
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Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Escalator Clauses are not used in my area. I am not sure most agent even understand them. Multiple offers use the highest and best.

May 02, 2016 12:19 PM
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

In Oklahoma there is no escalator clause.

May 02, 2016 10:07 AM
Rainmaker
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Richard Weeks
Dallas, TX
REALTOR®, Broker

Our real estate commission does not allow us as agents to write an escalation clause.

May 02, 2016 07:27 AM
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Pat - We see both. On our listings where we're expecting multiple offers, we're requesting best and final and no escaltor clauses - less buyer (and agent) confusion.

May 02, 2016 04:59 AM
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Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

I do not write offers with Escalator Clause, and I never received any as a listing agent. 

May 02, 2016 07:00 AM
Rainmaker
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Raymond E. Camp
Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

They ask for highest and best and recently are seeing use of the escalator clause.

May 02, 2016 05:27 AM
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Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Escalator Clauses are not used in my area and I doubt many agents even know what they are

May 02, 2016 09:42 PM
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Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Pat. I can count on one hand the number of purchase agreement I have ever seen with an escalation clause.

May 02, 2016 06:30 PM
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Patricia Kennedy not many agents try 'escalator clause'.

Many times the listing agents come back and ask for more even when escalator clause is in the offer - and they wanted the highest and the best on day 1.

May 02, 2016 03:18 PM
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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I haven't hear much about escalator clauses. Usually it's best and final. But of course I don't see what other buyers are doing when offering

Mimi Foster 's comments are interesting regarding confidentiality. The COE addresses this, too

May 02, 2016 02:52 PM
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Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

Highest and best in Indiana

May 02, 2016 02:18 PM
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William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have not seen an escalator clause this year yet

May 02, 2016 01:19 PM
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Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

We see both competing on the same house.

May 02, 2016 11:59 AM
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Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Never seen an escalator clause, it usually goes back and forth to highest and best. But we are not seeing multiple offers except on lower priced homes. And certainly not all the time. 

May 02, 2016 10:43 AM
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Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

We are not in a market that is having many multiple offers now.

May 02, 2016 10:42 AM
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Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Santa Clarita & Aliso Viejo

Best and final offer is the norm.  I prefer to counter with a price though.

May 02, 2016 08:38 AM
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Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Escalators haven't been in use here in a long time.  Maybe if the inventory gets tighter we'll see them again.

May 02, 2016 08:23 AM
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Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

In my situations, first quick clean full price offer gets it

May 02, 2016 07:25 AM
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John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, MD, MT, NC, NJ, NV, OK, OR, PA, SC, TN, TX, UT, VA, WV - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

I've seen both happen.  People are pulling out all the stops in our low inventory marketplace

May 02, 2016 06:46 AM
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Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

They are told to bring in H&B by a certain time. Often times, they do not which makes me wonder their logic or the buyers logic. The market has not been busy enough to use the rabbit out of the hat 'escalator clause' yet.

May 02, 2016 05:34 AM
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Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

I still se a few low ball offers here, not as hot as some areas.

Jun 10, 2017 11:04 PM
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Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I have written more Escalator Clause this year and even that is not working.

May 07, 2016 12:07 AM
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

We are definitely seeing multiple offers, and some escalating clauses.   The ones that are winning the bid are those paying over appraised value.  

May 05, 2016 10:56 PM
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Escalator clauses were being used a lot about a year ago.  I am seeing highest and best these days. 

May 03, 2016 02:33 AM
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Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Highest & Best. Very rare we see Escalation Clauses.

May 02, 2016 11:50 PM
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Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

We have seen both on our listings, and used them when representing buyers

May 02, 2016 11:15 PM
Rainer
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Becca Rasmussen
HomeSmart Cherry Creek - Highlands Ranch, CO

Escalation clauses are used here in CO. Everyone in my classes who mentions them suggests to not bother, go with highest and best, and, as Jon Goodman says (bold added):

"The smart seller, who seeks to avoid all of the uncertainties and complications of an escalation clause, may simply counter the offer from the buyer using the maximum price in the escalation offer as the fixed price in the counter proposal."

May 02, 2016 11:13 PM
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD

The highest and best seems to be preferred.

May 02, 2016 11:01 PM
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Susan Laxson CRS
Premier Sotheby's International Realty - Naples, FL
The Michelle Thomas Team

I have only seen one used once and thought it was a great idea! Evidently it hasn't taken off because I haven't seen one in years.

May 02, 2016 10:47 PM
Rainmaker
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Typically highest and best. We do not see alot of esculation clauses and when i do, they are most often not written in the seller favor. 

May 02, 2016 10:34 PM
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Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

As listing agent, always require highest and best.

Then negotiate.

Escalators on a 250 house will counter at 7 figures, then the buyer agent figures it out.

Representing the buyer I have found escalater cluases useful but escalators are more useful at the mall.

May 02, 2016 09:47 PM
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FN LN
Toronto, ON

Each agent has their own strategy.

May 02, 2016 09:43 PM
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Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Pat -- we see both but typically the escalation clause is not used in the initial but in the case of a multiple counter offer.  

May 02, 2016 09:40 PM
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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

To-date, I've not seen anyone use the "escalator clause" in my market. It always seems to be the "highest and best" route.

May 02, 2016 09:02 PM
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Dennis Swartz
Full Circle Property Management - Columbus, OH
MBA, GRI...experience counts!

Highest and best here

May 02, 2016 07:55 PM
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Dan Tabit
Keller Williams Bellevue - Sammamish, WA

My broker & I wrote an escalator clause ourselves in the mid 2000's. Our MLS later prepared a more extensive version we all use.  Occasionally some sellers, mostly banks won't accept them and just demand highest & best.  I like them as often times, we can achieve a nice outcome where the offer we escalate off of is less than my buyers cap, so we aren't fully escalated, but we still win the bid.  

May 02, 2016 04:49 PM
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

different agents handle differently

May 02, 2016 04:00 PM
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Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

i am a fan of the escalator clause..makes the seller realize there are two sides to every story

May 02, 2016 12:47 PM