Initial bid placed with the intention to increase the bid if another bid comes in higher. Basically it shows very strong intent on the buyer to purchase the property.
As SIGfourme said, you would put an offer with an escalation clause that says something like...
"Purchase price $500,000 with escalation of $2000 over the highest offer up to $520,000." Obviously you choose the numbers. In my example, pretend they have another offer $510,000. Your offer automatically goes to $512,000. It's a good tactic if everything else is equivalent, such as financing, inspection requirements, etc.
These go to eleven.
Posts: 12606 | Location: Westminster, MA | Registered: November 14, 2006
Initial bid placed with the intention to increase the bid if another bid comes in higher. Basically it shows very strong intent on the buyer to purchase the property.
It basically sounds like an auction. I have no problem with real estate auctions so long as they're advertised as such, and conducted by licensed auctioneers. I'm not a big fan of properties being listed at prices the owner is unwilling to accept in order to create an auction.
