We just completed our business meeting for mid June…Our office manager presented an addendum named PRICE ESCALATION ADDENDUM TO CONTRACT made for us by our legal department that basically affirms the following agreement between a seller and a buyer…If a competing offer/offers is/are submitted on the subject property, the buyer (the one who already has an executed, in force contract) agrees to “beat” that/any offer by (Insert dollar figure here – Typical is $1000) until any competing offer/offers reach (Insert dollar figure here) above the current, in force contract!! Essentially the on paper buyer is agreeing to continue to raise their offer in $1000 increments 1, 5, 10, 20 times (translated that means $1,000, $5000, $10,000, $20,000!) So as NOT to lose the property!
We have been saying for many months that we have an inventory problem. Listings are like GOLD and sellers are beginning to really take advantage…Wow!