An escalation clause in Washington State real estate allows a buyer to automatically increase their offer if another competing offer comes in—helping them stay competitive without guessing how high to bid. Using the NWMLS Form 35E, buyers set a maximum price they’re willing to pay, and sellers must show written proof of the higher competing offer. This strategy is often used in multiple-offer situations and can be a powerful way to win a bidding war while still protecting your budget. Understanding how escalation clauses work can help both home buyers and sellers in Washington make smarter, more confident real estate decisions.