Escalation Clauses in contract offers

[Joseph D.]

Hello all,

I have a question about escalation clauses that I was hoping someone could shed light on. We live in an area with limited inventory right now. Houses are getting 15+ offers, 25-20k over asking (approx. 8%-10% above asking). It;s my understanding that the seller will see the amount that I am willing to escalate to if I include an escalation clause in my contract. What stops them from just choosing the contract that is willing to escalate the highest, and then countering that price? Any advice and insight is appreciated. Thanks to all!