Three different tools: a counter changes the terms, a backup waits in line, and an escalation clause raises your bid automatically. - Counter offer. The seller responds to your offer with different terms. You can accept, counter again, or walk. This is the normal back-and-forth of reaching a deal. - Backup offer. The seller is already under contract with another buyer but accepts yours in the number-two position. Nothing happens unless the first deal falls through; if it does, the seller is contractually lined up to move to you without going back to market. Sitting in backup costs you little and can pay off. - Escalation clause. Language in your offer that automatically raises your bid to beat competing offers up to a ceiling you set. Offer $500,000 (illustrative) with a term that you will pay $500 more than any verified higher offer, up to a maximum of $510,000, and you stay competitive without blindly overpaying. One caution on escalation clauses: some listing agents dislike them and will simply ask everyone for highest and best instead, so they are not always the winning move. Your agent can tell you which tool fits the situation in front of you.