PRICE ESCALATION ADDENDUM TO AGREEMENT OF SALE - parealtor 2025

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  1. Click ‘Get Form’ to open it in the editor.
  2. Begin by filling in the property details in the designated section, including the property address.
  3. Next, enter the names of the seller and buyer clearly in their respective fields.
  4. Specify the date of the agreement to ensure all parties are aligned on timelines.
  5. In Paragraph 2, indicate the maximum purchase price you are willing to offer above any competing offers. This is crucial for clarity.
  6. Review and check any applicable options regarding mortgage contingencies in Paragraph 3, ensuring they reflect your financial situation accurately.
  7. Complete any additional sections as required, including signatures from both parties at the end of the document.

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With an escalation clause in place, a competing offer will automatically increase your offer depending on the contracts terms. The seller must show proof of a real bona fide offer to increase your final purchase price, so you dont pay more unless someone else offers a higher price.
Example 1: The parties hereto agree to, from time-to-time, but in no event more than once per [insert time period monthly, quarterly, yearly, etc.], adjust upward the price to Buyer of the Equipment in the event of a Significant Cost Increase, as defined below, in an equitable amount to such increase, for so long as
Understanding the Purpose and Timing of the Escalation Addendum. The Escalation Addendum is designed to automatically increase a buyers offer to outbid competing offers, up to a specified maximum price.
Escalation Clauses: what has been your experience the last year? For example with a house going for $300K, you may add an escalation clause to your $325K offer saying youll offer $10K more than any other higher offer up to a max of $355K.
The reason why sellers dont want escalation clauses is simple: It introduces the risk that theyll sell the house for less than what would be your best and final offer.