Selling
06/26/17 | Liz Lyster
In a competitive seller's market (which is exactly what we have in the Greater Boston area), buyers sometimes write escalation clauses into their offers. But when we're working with sellers, we recommend that they not consider offers with an escalation clause. We will explain why we avoid them, but first let’s talk about what an escalation clause is, and how it works.
As a seller, you will sign a listing agreement with your agent. You have three options regarding how you want any offers on your property disclosed to buyers:
Ellie and I suggest our clients choose #2. This allows us to build excitement about your listing by disclosing the existence of other offers. (Sometimes we have more than a dozen offers on a home—recently we had 18!) However, by not publicizing the proposed offer amounts, buyers are encouraged to create the best possible offer, which tends to push the offer amounts up. You often receive the strongest, most straightforward offers this way, and can move forward with the sale of your home without the hassle of analyzing and breaking down escalation clauses.
The bottom line? If you consider offers with an escalation clause, you risk leaving money on the table. Don’t do it!
If you have additional questions or want to get started selling your home, please contact Ellie and me. We’re here to help.
Fall has arrived, and with it is the idea of “Harvest Season,” bringing to mind images of abundant produce at farm stands and overflowing grocery store aisles (not to mention the ubiquitous Pumpkin Spice in everything from donuts to sausages). Yet, this time of supposed plenty contrasts sharply with the reality that nearly two million people in Massachusetts—about 18% of the population—experience food insecurity. We at Liz & Ellie Local don’t just help people buy and sell houses; we aim to educate people on the issues that affect where we live, too. In a state with so many resources, we feel moved to help our neighbors gain access to healthy and delicious food.
You may have heard or read about a recent settlement between the National Association of Realtors (NAR) and the Department of Justice that resulted in several significant changes to how real estate commissions are handled. We’d like to address how we are responding to the settlement, and how changes may affect you.
You may have heard or read about a recent settlement between the National Association of Realtors (NAR) and the Department of Justice that resulted in several significant changes to how real estate commissions are handled. We’d like to address how we are responding to the settlement, and how changes may affect you.
With their complementary communication styles, responsiveness, competence, and ability to truly listen, Ellie and Liz enable their clients to feel at ease throughout any real estate transaction. They would welcome the opportunity to be your next real estate advisors.
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Cambridge, MA 02138
