So what is shadow inventory? 

 

This sounds scary, but it’s really not. Shadow inventory is a term we use in Real Estate to identify property that's not active on the market but we know it's available. For instance,  say I know that John Smith is going to be transferred next month. He's called me about listing his property, but he's not quite ready- he hasn't got it painted and touched up or done some minor repairs. It’s going to be a few more weeks before the home is technically “market ready.” But, as your agent, I may be able to show you the home anyway, especially if I think it’s perfect for you. 

Just about all agents in the industry have a list of this “shadow inventory,” especially  in a market where supply is so tight. It's important to…

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What is an Escalation Clause?

 

Today’s market is definitely seller-oriented. That means that oftentimes buyers are finding out that they have to compete when buying a home. On of the ways to be competitive is to write an escalation clause.

 

An escalation clause  is simply a clause that states that your offer is “x” amount, but you will increase your offer by a certain increment up to a maximum amount. For instance let’s say the property is  listed $250,000. We make a full price offer,  but then put a clause that says “I'll pay a thousand dollars above any other offer up to a maximum of $275,000.” 

Should the seller receive multiple offers, they can take the highest one (they must show you proof of the offer!) and you can purchase the…

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