Escalation clauses come up in almost every competitive Seattle-area offer conversation, but most buyers have never seen how one is actually structured. Here’s how they work, what they protect you from, and where they can work against you.
If you’ve written — or lost — a competitive offer anywhere in King, Pierce, or Snohomish County, there’s a good chance an escalation clause was part of the conversation. It’s one of the most common tools buyers use to compete on price without having to guess the exact winning number upfront. It’s also one of the most misunderstood. [Read more…]
Editor’s note: This post was originally published in July 2024. The example scenario below uses appreciation and payment figures that were accurate at that time — the underlying math still holds, but if you want current numbers for your own situation, I’m happy to run a personalized analysis.
