On this podcast, episode 132, Adrian and Ariel discuss what an Escalation Clause does for homebuyers while also diving into the potential disadvantages they can bring when looking to buy a home. With the competitive real estate market, buyers always try to find a way to one up their competitors' offers. One of the ways they do this is by having an escalation clause in their contract. An escalation clause in a real estate contract basically states that “I will pay X price for a home , but if the seller receives another offer higher than mine, I’m willing to increase my offer to Y price.” This allows the buyer to always be one step ahead of their competition. For example, buyer 1 offer can be 900K + an escalation of 15K. If buyer 2 offers 1M , the escalation matches that and increases it 15K so buyer 1’s offer is now 1M (original offer) + 15K. The problem with the Escalation Clause is that it often puts distrust within the seller because all the money they are willing to spend is not being offered upfront. This leads some sellers outright declining any escalation clauses because they would simply want a proper submission of what a buyer is willing to spend. All of that and more on KT Confidential - Real Estate Podcast. **************************** Feeling tight on money? Want to save an extra $100 a month? Check out our tips on how to reduce your spending! Money Saving Tips Guide: http://kormendytrott.com/money-saving-tips/ Money Saving Apps: https://kormendytrott.com/top-apps-to-save-and-earn-money/ **************************** Catch clips and highlights of the show here: http://www.instagram.com/kormendytrott **************************** Our social: Instagram: http://www.instagram.com/kormendytrott YouTube: https://www.youtube.com/user/kormendytrott Facebook: http://www.facebook.com/kormendytrott Twitter: http://www.twitter.com/KormendyTrott Soundcloud: http://www.soundcloud.com/ktrealty LinkedIn: https://ca.linkedin.com/company/the-k... Pinterest: https://www.pinterest.ca/KormendyTrott TikTok: https://www.tiktok.com/@kormendytrott?lang=en **************************** Check out our teams social: Adrian Trott - https://instagram.com/adriantrott?igshid=18kslmk0i2wfu Ariel Kormendy - https://instagram.com/arielkormendy?igshid=b7w4whjxdmhl Steve Bruman - https://instagram.com/stevebruman?igshid=1xotcg46zw1gx Chris Behie - https://instagram.com/cbehie?igshid=16au6wqst1bqq Jennifer Singh - https://instagram.com/jennys_here?igshid=g1b3dw6y1yp6 Steve Cecchetto - https://instagram.com/stevececchetto?igshid=l4hic3nku2xb Joanna Venditti - https://instagram.com/nestingstory?igshid=1k50dl3be8y65 Vishal Kapoor - https://www.instagram.com/vishforyourhome/?igshid=y3cr57ylfbst Robin Dasilva - https://www.instagram.com/robin.dasilva22/?igshid=tkcjfqzgv1iw Leni Klippenstein - https://www.instagram.com/leni_yang/?igshid=1wlqns04c5n02 **************************** The founders, Ariel Kormendy and Adrian Trott, started The Kormendy Trott Team, a real estate team based out of Halton region in Ontario, after both being in need of a change from their successful careers in the automotive industry and both experiencing the lack of service being provided in the real estate industry. They kicked off their careers in 2011 and quickly became a top-performing team in the country, ranking 17th of approximately 200 for Century 21 in 2017; as a team of just the two of them compared to much larger teams. They decided that they needed to take their team from being real estate agents in Milton to the rest of the GTA and beyond by expanding and servicing more areas. The team has since grown to have an administrative arm, media department and successful sales team operating a smooth running and successful business. Follow them on social for behind the scenes info, real estate tips, industry secrets and more.