I'm running out of adjectives to precisely describe the Route One Corridor real estate market these days. Words like “active,” “busy” and even “bustling” just don’t capture the spirit of the barreling price escalations and sales activity.
From the lovely Tudor-style home in University Park to a stunning Craftsman Bungalow "Kilbourne" model situated on a gorgeous .35 acre lot in Hyattsville. There have been escalations ranging from $50,000 to a whopping $165,000!
4427 Underwood Street, University Park, 4 bed, 2.5 bath - Sold price $685,000
4219 Nicholson Street, Hyattsville, 5 bed, 2 bath - Sold price $788,000
3107 Laurel Avenue, Cheverly, 4 bed, 3.5 bath - Sold price $565,000
5910 Cleveland Avenue, Riverdale, 4 bed, 3 bath - Sold price $565,000
What is an escalation clause?
An escalation clause is a clause or addendum to a real estate contract that indicates that the buyer is willing to raise his or her offer price if the seller receives a higher competing offer.
The buyer typically identifies a specific amount above a competing offer that the buyer is willing to go, up to a stated maximum.
Stated a little more simply, an escalation clause lets a home buyer say: “I will pay x price for this home, but if the seller receives another offer that’s higher than mine, I’m willing to increase my offer to y price.”
Escalation clauses have long been a part of real estate contracts in seller's markets, but they have gained particular popularity during our current real estate boom. Here is a recent post I wrote about the current seller's market.
How we won!
My clients had been searching for their dream house for months. Late one Wednesday evening the ad popped up for a dreamy, white clapboard house with a deep front porch. They knew this could be "the one."
Acting quickly, the next day we toured the house and they were in love. They were also anxious. They had lost out before and knew that we would have to be strategic to have any chance.
We needed a plan. I called the listing agent to introduce myself. After a pleasant conversation I knew her clients wanted a quick settlement and they had a preferred title company. We would definitely be writing an offer with those elements in mind!
The sellers agreed to allow my clients to conduct a home inspection prior to making an offer. We had a great inspector out to the house by Friday. In the meantime, I had been doing in-depth market research to help my clients determine how much more than the asking price they were willing to pay. After a careful study of the comparable recent sales, my clients determined that they were willing to go 7% over the list price of the house.
By Saturday afternoon we had submitted an offer for significantly more than the asking price, with no home inspection contingency, settling on the date preferred by the sellers and using the sellers' preferred title company. Late that evening, I received the call that our offer was selected. My clients were overjoyed!
I love this story because we acted fast and decisively. At the same time, my clients protected themselves. We were able to write an offer without a home inspection contingency because they inspected the house ahead of time. My in-depth market analysis gave them substantiation that the price that there were willing to pay was not putting them at risk of grossly overpaying for the house. In a hot market, it is important to act with confidence, not recklessness.
What are you waiting for?
There is a lot of interest in homes in our Route One Corridor Communities but a shortage of any for sale. If you are thinking about selling, now is a great time to do so. Contact me today to discuss your home’s value and how to take advantage of this great market.
Looking to buy? I will guide you through this intense market and give you the inside edge to make sure that you win the house that you love. Contact me today to find out more.
Free Resource for Sellers!
Click here for your own copy of the Home Sale Pre-market Checklist.
I created this helpful resource to help you prepare your house for the market. It contains helpful reminders about:
windows, doors and wood trim
Free Resource for Buyers!
Click here for your own copy of the House Hunting Worksheet.
I created this helpful resource to help you keep track of the essential details of each house that you visit. It has places to keep track of:
house facts (square footage, bedrooms, baths)
commute time, schools, restaurants
pros and cons
furniture fits guides (bed and tv)
Who am I and how can I help you?
I'm Tamara Beauchard - realtor, architect and right-fit specialist
As a top-performing realtor with Re/Max Professionals, I handled nearly $12 million in real estate transactions this past year. I stay on top of the market to ensure that you are confident about the price and the process from our first meeting to the settlement table.
You have an architect on your side! My experience in the design and construction industry means that we can talk about renovations and improvements that will both beautify your home and improve it's resale value.
I'm a right-fit specialist who provides consulting services for people who are not ready to buy or sell right now, but need advice on where to start with renovating or downsizing.