Realtor Lingo: Escape Clause
Wondering how you can make your conditional deal more appealing to a seller?
An escape clause could be the answer
Now that the market is cooling, we are seeing more conditional deals. We are also seeing more buyers wanting to sell their own home before firming up on a new one.
If you want to make an offer on a home that requires a long conditional period - 3 weeks to sell your current home for example - you can put in an escape clause!
An escape clause allows the seller to continue to offer their home for sale, while you do what you need to in order to feel confident in firming up.
Scenerio:
Susan wants to buy Claire’s house, but wants to make sure her current home sells first.
Susan makes an offer on Claire’s house with a 3 week Sale of Buyers Property condition, paired with a 48 hours escape clause.
Claire accepts and keeps her home on the market as “conditionally sold, with an escape clause”.
Claire receives an offer from Sarah 1 week later that she wants to work with and prefers over Susan’s offer.
Claire alerts Susan that she has 48 hours to firm up their deal, or it is voided and she can accept Sarah’s deal.
Susan and her Realtor chat about options and makes a decision best for her.
Do you have questions regarding navigating the current market? Head on over to our contact form here and we will be in touch!