Most real estate agents don't understand escalation clauses which is a shame because they can be a valuable tool in a buyer's agent tool belt. The problem you run into is listing agents who are clueless about how they work.
I have written a very comprehensive article at Maximum Real Estate Exposure explaining how an escalation clause works. Take a look at the web reference.... more
The comment below echo my beliefs that so many real estate agents are clueless when it comes to an escalation clause. An escalation clause is used for the buyers benefit in a bidding war - the end result of which is the seller getting an exceptional price for their property.
There are many things to understand as an agent, buyer and seller when it comes to using an escalation clause. Take a look at the detailed reference at Maximum Real Estate Exposure that explains in detail the pros and cons of the escalation clause.... more
Typically in this situation, you would apply for what's called a "subprime" mortgage. Lenders consider business owners "high-risk" due to not only a fluctuating income but also because (unfortunately) a lot of business fail. Your income appears lower than it actually is because of business write-offs with your taxes. With a subprime mortgage, the interest rate greatly depends on your credit score. Under 600- it will be pretty high, 700+, it will be comparable to a conventional mortgage. Also, you need to put down at least 10% of the purchase price.
(It's been awhile since I was a mortgage broker, but that is what I remember about sub-prime.. things may have/most-likely have changed).
Another option would be to do a lease purchase/ rent-to-own but sellers willing to do this are hard to come by.
Hope I helped a little.. there are options out there. You could always just talk with a mortgage lender and see if they can offer any other options. Good luck!... more
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