In our overheated market here in the San Francisco Bay Area, we constantly experience competing offers when we write an offer for our buyers.

I always tell my clients that they need to present the most powerful and compelling offer that they can...highest and best...if they really want the house. 

I do not think that I have ever seen an escalation clause as a listing agent and I do not support the idea of an escalation clause with my buyers. If I received an offer which contained an escalation clause on one of my listings, I would simply counter it to the amount of the limit...unless there is a better offer. By including an escalation clause in the offer, the buyer has already said that they are willing to pay that amount. If the buyer wants an escalation clause of up to a certain amount, the offer should be written for that amount. Either that amount wins or it does not. No special gimmick will help the buyer whose limited escalation clause is bettered by another buyer who simply offers a higher price and better terms than an offer with an the escalation limit.

I am from NJ ....you can use baseball bats too!!! joking aside than you for the informative post

I generally have the Buyer pay the inspection costs like well, septic, pest, etc. That helps the Seller know they don't have that burden and it is a cleaner contract.

Great post for buyers.    Every local market is different.    I check with the sellers' agent about the sellers' personal requests - that often helps.   Re: escalation clauses I'll ask: if the agent is used to them and comfortable explaining to their sellers, and if they will provide the price page of the next highest offer to confirm the price.

It continues to be a challenge with multiple competing offers and homes selling for over asking price, although there are exceptions. Buyers must understand they must come in with their best offer, terms and conditions from the start to be in the best position. Even then there is only 1 winner.