how to handle multi offer situation when you really want it

[Jay Hinrichs]

I posted earlier this week about a lot that came up in Charleston.. my realtor ( who is awesome) e mails me at a little at 10pm her time.. new lot on a little street I have already built two homes on and have been wildly profitable.. I want this lot its the last one then the street is built out.

she docusigns me 5 minutes later  all cash close as soon as title can be done.. ( takes a while in those east coast states.. here in the west coast we can have title done same day) but thats another story.

by the time I hear from here next morning  2 other offers now we are in Highest and best.

So I put in an escalator clause.. thinking my competition may not know of this or their agents.. I offer 2k more than the next highest bid... 

list price was 150k  I would have gone to 180k... on a highest and best.. 

but i put in I would pay 2k more than then next highest and best.. must provide written proof.  the highest and best was 165k and I got it for 167k close in one week..   DONE deal all signed around.. so I saved 13k on my highest and best and beat two other local builders out of it .. LOL..

so kind of proud of myself today.. 

So for you all in hot markets escalator clause works and may not be known in some markets .

[Russell Brazil]

Sometimes I will also write up an escalation addendum that says we will beat an FHA/VA offer by X amount, and conventional offer by Y, and a cash offer by Z. Ive had a lot of luck with that strategy.