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…]