Our Escalation Clause in Northern Va area uses increments and up to such and such price over other offers.

Typically my advice to my Buyer Clients is to make the incremental increase between 1/2 and 1% of the LP above other offers, up to the maximum they are comfortable with offering (after we review recent comps and consider the current market conditions).

The reason I suggest this percentage incremental increase is that if the increase is too small above other offers top offer it may not be significant enough to make a difference to the sellers particularly because there maybe other beneficial terms offered by other would be buyers that this client can not offer. So the increment needs to make an impression on the offer. For example a $3000 dollar increase in the offer on a $300,000 property will have more influence on the offer than a $3000 increase on a $900,000 home would.

I don't use escalation clauses with buyers.  I tell them to come in with their best foot forward.  There is too much room for abuse with an escalation clause and who wins if two offers have them for the same dollar amount (assuming all other items are equal)?

I don't use them. But you can bet I have a discussion with the buyers about the market conditions, their competition, and coming up with the strongest and cleanest offer we can from the beginning depending on their financials and what they are willing to do. We also talk about the possibility of appraisal issues.

I use no increments - the clause reads, "up to ____" (one number). 

As to the variance, yes, it depends upon the price range AND the 'hotness factor' of the property.

All bidding wars are not created equally - you have to tailor your Offers, according to area, seller and price (as well as other factors)!

I have not used them. Submit your best offer and move on if it is not accepted.

I do not use escalation clauses. You've got some interesting comments here. 

  I neither use them nor recommend them.  Come in with your highest and best at the beginning.

We discuss the options and will vary depending on the situation. I once lost a sale where we were the highest offer, but our escalation increment was only $1000.  The other offer had been out there a while and the seller felt obligated to them more than $1000.00 worth. It's the buyer's choice, we provide our experience and options. 

I guess it would depend on purchase price right? Normally I say $1000 over highest buyers purchase price. Would be kind of lame with a $1M property wouldn't it? 

I don’t use an escalation clause strategy. In fact, I think it is a very poor strategy. While it seems clever and different, it is really too clever. If I am presented with an escalation clause offer on my listing that contains a range up to which the buyer is willing to go…what amount do you think will be the automatic counter?

I do not like esculation clauses for my buyers, i can tell you as a listing agent, the buyer with one will most likely be paying their high amount and not inital offer. 

We only used to use those during the great appreciation market 2006-2011.

Haven’t been in a situation that requires it to be dusted off and brought back out as a viable method call and I never really felt 100% grade about them because you’re to some extent basing it on the integrity of the other agent

David's answer make sense to me if you're going to do it.
However, a really smart RE attorney (Colorado Florida and Connecticut) I know who is a no BS guy said don't mess with escalation clauses; you give away control and your clients will end up overpaying and/or regretting it.
Just tell your clients to take their best shot out of the gate!

This depends on our buyer. Often it is $1000 over the next best offer up to a limit of a certain figure.  However, we have had one recently accepted which had no top, but the final figure was subject to buyer's approval. It worked!

Ours is similar to Dave and Debe's

You have great answers here.  A

I do not use escalation clause.

In Texas we are not allowed to use "escalation clauses", I would recommend to my client that they see a real estate attorney.

If I do, I use only a specific amount and not something like ''500 over the highest offered price''. 

Never did.

I don't use them but had a buyer ask for one. Turned out we didn't need it as there were no other offers.

I always have this discussion with the buyer, and stay within their comfort zone.  ALWAYS have a maximum price too.

 very seldom use one.  But I am not above calling my client and telling them what they need to be at

I usually recommend $1,000 increment.

Many good responses.

we go $1000 over the best offer but put a cap on it.

I think escalation clauses are a very slippery slope..... 

Put your best foot forward and accept the fact you may not be the winner. Not a fan of bidding contests!

I don't use escalation clauses very often.  Though, I assume I would recommend different increases for different properties and situations.

This isn't ebay. My seller will counter with the highest price on the buyer's escalation clause.

I don't use escalation clauses. I've never figured out how they can really be enforced and validated. When you come in with one you are already telling seller you are ready to pay more. I recommend that buyers come in with their best offer upfront. If a highest and best bidding war ensues they still have the ability to up their offer or just stay where they are.

There are so many offers the seller is interested in a clean offer.  Esclation clause is discouraged. If countered back they want a finite number often way way over (say 50-300K over).

No.