An escalation clause is a real estate contract, sometimes called an escalator, that lets a home buyer say: "I will pay x price for this home. Let's say there's an escalation clause in what is accepted as a backup offer.An escalation clause is an addendum submitted in a multiple-offer situation to improve the odds that you will outbid other buyers. The escalation clause increases a buyer's offer to a stated dollar figure above the highest competing bid. An escalation clause is a rider written into a purchase offer to assist an individual in beating out competing offers in real estate. You can write your offer with an escalation clause contingent on the seller requirement of providing you a copy of the other offer. Certain contracts may include a price escalation clause. In the event of more than one offer, an escalation clause allows a buyer to make their offer amount dependent on the offer of others.