Escalating bids or clauses are a bidding strategy commonly employed in auctions or competitive bidding scenarios, including the real estate market. In New Brunswick, this strategy is being used when placing offers on homes. However, it's worth noting that this strategy is not available in the market in Halifax.

The concept of escalating bids involves potential buyers submitting offers that increase incrementally in response to competing bids from other buyers. With an escalating bid clause, the buyer agrees to automatically increase their offer by a predetermined amount above any competing bids. This allows the buyer to maintain a competitive edge and increase their chances of securing the property.

There are pros and cons associated with escalating bids. On the positive side, this strategy can give buyers a better chance of winning a bidding war by outbidding competitors. It also provides transparency in the bidding process, as buyers are aware of competing offers and have the opportunity to adjust their bids accordingly.

However, there are also potential drawbacks. Escalating bids can drive up the price of a property, potentially leading to overpaying. It can also create a sense of urgency and pressure among buyers, potentially causing them to make hasty decisions or exceed their budget. Additionally, this strategy may not be favorable for buyers who prefer a more cautious approach or have budget constraints.

Meet Dwayne Snell, team lead of the Snell Group out of Rothesay NB