Escalation Clause in Real Estate - how it's like Ebay bidding

Wondering what an Escalation Clause is? Why serious home buyers need to include this in their bid / offer on houses. If you are buying a house in this competitive market, you’ll need to be prepared to pay above asking price for the home in most cases. One term that is often heard is the importance of an escalation clause. But what exactly is an escalation clause and how does it work? As the real estate term sounds, it makes sure that if you are outbid by another offer, you can go higher by bidding higher in increments through your realtor. Think of it like bidding on an item on Ebay. You set a reserve price and Ebay bids on your behalf each time another buyer outbids you. Watch the video for a real life example. For North Atlanta real estate questions reach out to bruce@brucebo.com. Bruce serves Alpharetta, Cumming, Milton, Suwanee, Sugar Hill and Forsyth County and he specializes in luxury home communities. www.brucebo.com.