Buyers of existing homes have been using an escalation clause for several years as a way to win in multiple offers. Said buyer will pay $$ more than any best offer up to $$ amount. Well, builders have a different spin on this as lumber prices nearly doubled in 4 months of 2020. Material costs are forecasted to rise more in 2021.
47% of builders are including a clause related to the final price being subject to material costs. As with any contract read what you agree to and make sure you have a cap amount you are willing to spend.
Happy house building if that is on your bucket list!
Ingrid Friel, Realtor 
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