I once had a seller who agreed with my position, and when the buyer tried to insert such a clause, he had me tell the other agent he wanted to be fair to the other person who was bidding, and asked simply for a highest and best offer...with no tricky clauses...........why should someone be able to buy a house off of the back of another bidder......
and besides........what IF the other bidder had the same clause in his offer!!!
Try figuring that one out!
is that the Offer Price will automatically escallate, determined by a competing Offer:
This sounds pretty slick, and underhanded, and, probably in most States, illegal!
The reason that it should be illegal is that competing bids are supposed to CONFIDENTIAL.
If someone is disclosing other offers, they would be in violation of the law.
In California, I am pretty sure that the offending Realtor would lose their license, I don't know about other States.
Another recommendation I make, which is perfectly legal to include in a sales agreement in PA, is to include a clause or addendum stating that "Buyer agrees to increase the purchase price by $XXX over the highest offer up to a maximum sales price of $YYY." I've used it quite often in such situations with the Buyer's consent. I've won some and I've lost some. It's not a good feeling to not get the agreement signed when you've made your best offer, but such is life. Now, it would be considered unfair if you wrote your offer and you, or or agent, were never informed of the existence of a competing offer.