For home buyers locked in a heated bidding war, there is one weapon that may help ensure victory: an escalation clause. Jumbo Jungle Tips Here are some things to consider if you’re thinking of using an escalation clause. If an escalation clause is invoked, buyers may need additional cash on hand for a larger down payment. For example, the escalation clause could specify that the seller must provide a copy of the highest offer received. “If you’re talking about a $15 million house, the X amount needs to be substantial enough to be material.

Source: Wall Street Journal February 14, 2018 15:37 UTC