Can you do your inspection prior to offer? By eliminating that contingency from your offer you will show you are serious and it will give the seller peace of mind that you aren't going to ask for repairs. I agree with eliminating the appraisal contingency if you are comfortable making up the difference in cash. The fewer the contingencies the better.
Another creative approach is to pay some of the seller's closing costs. In my state, transfer and recordation taxes are traditionally split between the buyer and seller, but offering to pay 100% of those charges can make a big difference to the seller's bottom line.
I'm not a fan of escalation clauses, but if you decide to include one, the increment should be at least $2k.
Write the letter. Flatter the property (layout, condition, upgrades, cleanliness, proximity to work) and explain your relationship to the lender. Explain your flexibility with settlement timeframes. Include a very strong comittment letter from your financial institution. Have the president/loan officer call the seller's agent explaining how great you are as a buyer prior to the offer being presented to the seller. Consider giving a very large earnest money deposit with the offer...some buyers even agree to forfeit the deposit if they should pull out of the contract for any reason.
These are some of the tricks to winning an offer. When I was a buyer's agent, I also asked the listing agent if I could present my clients offer in person (to the seller and listing agent)...with my client in the car waiting to sign any changes and ratify the offer. This showed my dedication...and my client's seriousness about getting the property. I rarely needed to pull out the escalation clause if I was the only agent presenting in person and my client was right outside ready to sign.