Reservations in an Offer to Purchase reveal themselves when compared to terms which express commitment. Contingencies are reservations. Reservations are included to give a person an exit opportunity. As long as the buyer may exit the transaction, the seller is at high risk. A committed person has no need for reservations. She is recognized by what she has not included in her Offer.
I’ve written about the escalation clause and how it’s morphed into one cumbersome clause of if, and, or but. It’s a giant maybe. I wonder if psychologically the escalation clause may be working against the buyer by revealing the buyer’s reluctance and suspicions. When you think about it, the buyer who writes the Offer to give the Seller the buyer’s highest price and most favorable terms is the buyer who is in control. When a buyer writes an offer holding back on the price, but suggesting they will go higher if they have to, that buyer is giving control to the seller, and every other buyer who is willing to be the buyer everyone else has to beat.
When an accepted offer is more important than a few thousand dollars, close the door on the competition by being the Offer that can’t be beat. If you would do it if you have to, why not just do it and move on? Good chance you will eventually over commit for your second choice house.
