In today’s hot real estate market, buyers often face stiff competition for their dream homes. With limited inventory and rising demand, bidding wars have become the norm rather than the exception. If you’re planning to buy a house in such a competitive market, you’ll need more than just enthusiasm—you’ll need strategy. Here’s how to win a bidding war and make your offer stand out.

1. Get Pre-Approved, Not Just Pre-Qualified

One of the strongest signals you can send to sellers is a mortgage pre-approval. Unlike pre-qualification, which is only an estimate, pre-approval means a lender has verified your financials and is ready to back your offer. This reassures sellers that your financing won’t fall through.

Pro Tip: Aim for a fully underwritten pre-approval—it shows maximum commitment.

2. Make a Strong First Offer

In competitive markets, lowball offers rarely work. A fair and competitive offer right from the start shows sellers you’re serious. Sometimes, offering slightly above the asking price can help you edge out the competition.

SEO Tip: Buyers often search “how much over asking price should I offer?”—the answer depends on the market, but a 2–5% increase can make your offer more appealing without stretching too far.

3. Limit Contingencies

Contingencies protect buyers, but they can also slow down or complicate the sale. Sellers often prefer offers with fewer strings attached. Consider limiting or removing non-essential contingencies like minor repair requests, while still protecting yourself with vital ones (e.g., inspection, appraisal).

Pro Tip: Instead of waiving the inspection, offer an “informational only” inspection—it reassures the seller while giving you peace of mind.

4. Increase Your Earnest Money Deposit

An earnest money deposit shows good faith. By offering more than the typical 1–2% of the purchase price, you signal confidence in your ability to close the deal. This can help your offer stand out in a crowded field.

5. Be Flexible With Closing Dates

Sometimes, what sellers want most isn’t just money—it’s convenience. If the seller needs extra time to move, being flexible with the closing timeline can tip the scales in your favor. Offering a rent-back agreement (allowing the seller to stay temporarily after closing) can be a game-changer.

6. Write a Personal Letter to the Seller

While not always a deciding factor, a heartfelt buyer letter can help humanize your offer. Share why you love the home, how you envision living there, and your appreciation for their care of the property.

Note: Some states discourage or restrict buyer letters due to fair housing concerns—always check with your real estate agent before sending one.

7. Work With an Experienced Real Estate Agent

An agent with local expertise knows how to navigate bidding wars. They’ll advise on pricing strategies, communicate effectively with the seller’s agent, and help structure an offer that gets noticed.

Winning a bidding war in real estate isn’t just about offering the most money—it’s about being strategic, prepared, and flexible. By combining financial strength with thoughtful concessions, you can rise above the competition and secure the home you want.

If you’re ready to buy in a competitive market, partner with a skilled real estate agent who can guide you through the process and help you craft the winning offer.

Matt Witte strives to be the best realtor in North Andover, MA.

Any questions about real estate, reach out to Matt Witte, North Andover Realtor, MA