Back To Blog

Explaining Real Estate Contracts in Maine

Are you a buyer that is frustrated by multiple offers in the current real estate market? Consider using an "Escalation Addendum" to submit with your offer.  Let's take a look at and explain what an Escalation Addendum is:

Escalation Addendum- Part of a purchase and sale agreement for an offer to purchase property. Using the addendum above; Let's say that a home is for sale for $400,000, but there are other competing offers for said home. You would be willing to pay as much as $450,000 for the home. Should you just offer $450,000? Not necessarily.  In the example above, the Escalation Addendum automatically escalates your offer by $3,000 above the next highest offer. This ensures that you have a higher offer than others, while also capping what you are willing to pay.

Explaining the above Addendum:

  1. If the seller receives other offers for the property this addendum escalates your offer to $3,000 higher than theirs (escalation amount).  There is also a spot to specify what your maximum offer would be.  In this case, the max offer will be $450,000.
  2. The competing offer must be a bona-fide, arm's length offer, not a fake offer from seller's brother Bill.
  3. Seller's acceptance and escalation of this offer must be accompanied by the competing offer.
  4. This paragraph helps to assist with calculating the new offer amount.
  5. This paragraph covers financing terms, if not a cash offer.

Thinking of buying real estate in Maine?  We saved our buyers over 16% off asking price in 2021; meanwhile the statewide average purchase price was 100% of list price last year!

Add Comment

Comments are moderated. Please be patient if your comment does not appear immediately. Thank you.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.


  1. No comments. Be the first to comment.

Recommended Searches