What’s your approach to managing escalation clauses in a luxury deal?

Escalation clauses — where a buyer automatically increases their offer to outbid competitors — can be both a gift and a gamble.

I begin by clarifying terms upfront: maximum cap, increment size, and proof of funds. Transparency prevents confusion or resentment later.

For sellers, escalation clauses can create momentum but must be verified with real value. I cross-check comparable offers to ensure increases are legitimate.

Used correctly, they can simplify bidding wars. Used poorly, they sow mistrust.

My rule: clarity first, competition second. The cleanest offers usually create the best outcomes.