Win the Home Bidding War

The most important first step is to win the home bidding war is to consult your real estate agent, who knows the local market and has the expertise to guide you through the buying process. Below are a few general tips to then follow after speaking with your realtor about to help you win the home bidding war:

Make your best offer. If you want to win a bidding war, offer something attractively above the asking amount. This is a sure way to get the seller's attention because most sellers who receive multiple offers only seriously consider those at the top of the price heap.

Cover the seller's costs. Of course, price is only part of the equation when it comes to the seller's net proceeds from the sale. An offer with a slightly lower price can triumph if the buyer agrees to incur more of the transaction costs, like the penalty on discharging the seller's mortgage.

Show you're serious. Offer to make a large money deposit and as large a down payment as you can. Putting more money on the table up-front shows the seller you're serious about the transaction and willing to put your money behind your intentions.

Get pre-approved. Attach a copy of your mortgage pre-approval letter to your purchase offer. A pre-qualification letter is helpful, but a full approval, subject only to an appraisal of the property, is even better. Sellers favor buyers who demonstrate that they're financially able to close the transaction.

Don't add unusual or unnecessary contingencies or requests to your offer. Sellers know extra contingencies (e.g., the approval of in-laws, the sale of another residence) can delay the transaction or create a loophole for the buyer to bow out of the agreement. Special requests (e.g., the right to purchase appliances or move in early) complicate the offer and distract both sides from more important elements.