Meet the 'no cap' offer: Escalation clause to win a real estate bid - Business Insider

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Meet the 'no cap' offer: How one of Boise's top real estate agents modified an escalation clause to win his clients a house at $125,000 over ask

make a contractual provision in a home buyer's offer letter that seeks to outbid competition by a designated amount, the "no cap" offer means a buyer is essentially writing a blank check for a home — determined to successfully outbid any other offers on the table.

Bauscher used the example of a house being listed at $1.5 million, for which you could do an escalation clause beating any offer by $10,000, up to a max of $1.7 million. The 'no cap' would mean you are going to beat any competing offer for just what it sounds like, he said — without a cap.

 

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