In a sellers’ market, an escalation addendum is critical for outbidding others. If there are no other bids, then it does not come into play.
An escalation addendum asks for the increments of bidding over others and a $ amount as the lid. ( I suggest $2100 increment ) The lid is usually about $10,000- $20,000 over offered price. But it can be anything buyer wants and can afford. The lender letter should include the lid price.
Addendum choices are found on the last page of the sales contract. #39. When these boxes are checked they become part of the offer. For escalation you would have to write in escalation.
In addition to the Sales Contract, these two addendums would need to be added.
Property Disclosure form on all Virginia contracts stating seller is selling as is. Financing contingency addendum for conventional, VA or FHA.
If you are a listing agent be sure to upload your sellers signed property disclosure addendum into the MLS so buyers agent can pull it up.