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Nailing Your Offer on a Home

In today’s competitive housing market, homebuyers may need to pull out all the stops to be able to buy the home they want. That’s because you may have to compete with other home shoppers who are trying to buy the same house.

Those potential bidding wars are why you want to make sure that your offer stands out above any would-be competition. One way to do this is by putting in an escalation clause in your offer, according to Daniel Hernandez, vice president, international, Realty One Group.

An escalation clause is an agreement that stipulates that if another bidder makes an offer on a home that you previously bid on, you will automatically make a higher offer up to a certain amount.

This will ensure that your offer is always the highest (unless the bidding tops what you’re comfortable paying, of course).