Buying
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4 min read
The offer letter nobody reads
Escalation clauses, appraisal gaps, and the two lines that decide whether your offer survives a Sunday review.
Most offers are lost in two lines nobody reads carefully: the escalation clause and the appraisal gap.
The escalation clause
An escalation clause says you will beat any competing offer by a set amount up to a ceiling. It is useful when there are genuinely other bidders and expensive when there are not — you have shown your maximum before anyone asked for it.
The appraisal gap
If the home appraises below your offer, someone has to cover the difference. Saying you will cover a fixed amount in cash is often more persuasive than raising the price, because it removes the seller’s financing risk rather than adding to their number.
Written by
Marcus Dale
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