How to win a bidding war

In today’s competitive real estate market, bidding wars are common—especially in hot markets like San Diego. With low inventory and high demand, buyers often find themselves competing against multiple offers.

So, how do you stand out and win the home you love?

In this guide, we’ll break down proven strategies to win a bidding war, even when competing against cash buyers and higher offers.

🏡 Why Are There So Many Bidding Wars?

Before diving into winning strategies, it’s important to understand why bidding wars happen.

✔ Low Inventory – Fewer homes for sale means more competition.
✔ High Demand – Buyers are eager to lock in homes before prices rise.
✔ Cash Buyers & Investors – Many buyers are offering cash, no contingencies.
✔ Move-In Ready Homes Sell Fast – Updated homes in good locations attract multiple offers.

💡 The bottom line? If a home is priced right and in good condition, expect competition. You need to be prepared.

🔑 10 Winning Strategies to Beat the Competition

1. Get Pre-Approved (Not Just Pre-Qualified)

A pre-approval letter from a lender shows sellers you’re financially serious and ready to buy.

📌 Pro Tip:
✔ Get a fully underwritten pre-approval, not just a basic pre-qualification.
✔ Work with a reputable local lender—sellers prefer local lenders over big banks.
✔ Ask your lender to provide a customized pre-approval letter for each offer.

2. Offer Over Asking Price (But Smartly!)

✔ Research comparable sales to determine a strong but reasonable offer.
✔ Consider offering at least 3-5% over asking in high-demand areas.
✔ Ask your agent about an escalation clause (automatically increases your offer if another buyer outbids you).

💡 Pro Tip: Offering a round number (like $700,000) is common—instead, offer $701,500 or $703,200 to stand out.

3. Increase Your Earnest Money Deposit (EMD)

✔ A higher earnest money deposit (3-5% instead of 1-2%) shows you’re serious.
✔ Earnest money is credited toward your purchase at closing.

💡 Pro Tip: Make a portion of your EMD non-refundable after contingencies are removed—this gives sellers confidence in your offer.

4. Shorten or Waive Contingencies (Safely!)

Sellers prefer offers with fewer contingencies. Here’s how to make your offer stronger without taking on too much risk:

✔ Inspection Contingency – Instead of waiving, offer a shorter inspection period (5-7 days).
✔ Appraisal Contingency – If possible, offer to cover a gap if the home appraises low.
✔ Loan Contingency – If you’re pre-approved, shorten this to 10-14 days instead of 21 days.

📌 Warning: Never waive contingencies without understanding the risks. Talk to your agent before making a decision.

5. Be Flexible with the Seller’s Needs

Sometimes, it’s not about the highest price—it’s about convenience for the seller.

✔ Let the seller pick the closing date (offer flexibility).
✔ Offer a free lease-back (if the seller needs extra time to move).
✔ Keep the offer terms simple—avoid excessive requests or repairs.

💡 Pro Tip: Have your agent call the listing agent before making an offer to understand what’s most important to the seller.

6. Write a Personal Letter (With Caution)

Some sellers are emotionally attached to their homes. A well-written letter can help make your offer more memorable.

📌 What to Include in a Buyer Letter:
✔ Why you love the home (mention specific details).
✔ How you envision your life there.
✔ A sincere thank-you to the seller.

🚨 Note: Some areas are discouraging personal letters due to fair housing laws—check with your agent before submitting one.

7. Make a Strong First Offer (No Lowballs!)

Lowballing in a bidding war? Not a good idea.

✔ Come in strong right away. Many homes are selling above asking price.
✔ If you love the home, don’t play games—submit your best offer upfront.

💡 Pro Tip: If there’s no counteroffer, assume the seller went with a better offer. Make your first offer count!

8. Use an All-Cash Offer Program (If Possible)

💰 Want to compete with cash buyers? Some lenders offer cash-backed programs that allow you to make a cash-like offer even if you’re financing.

✔ Cash offers are preferred because they close faster with fewer risks.
✔ Some programs let you secure financing after closing, so you don’t need liquid cash upfront.

📌 Ask us about cash-offer programs for buyers!

9. Work with an Experienced Local Agent

🔥 In a competitive market, you need an agent who knows how to WIN.

✔ An experienced agent knows how to structure a winning offer.
✔ A strong agent has relationships with local listing agents—this can help sway a seller’s decision.
✔ They’ll advise you on when to be aggressive and when to pull back.

📌 Need a top agent? Let’s chat!

10. Don’t Get Emotionally Attached (Be Ready to Walk Away!)

💡 Winning a bidding war is exciting, but don’t overextend yourself.

✔ Set a firm budget before making an offer.
✔ Be prepared to walk away if the price gets too high.
✔ There’s always another home—don’t feel pressured to make a decision you’ll regret.

💰 Pro Tip: Just because you can afford it doesn’t mean you should pay it. Stick to your financial goals.

🏆 Final Thoughts: How to Win Without Overpaying

✔ Get pre-approved before house hunting.
✔ Make a strong, competitive offer from the start.
✔ Be flexible & strategic—it’s not always about price.
✔ Work with an expert real estate agent who knows the market.

💡 The good news? Even in a competitive market, buyers win homes every day—and you can too with the right strategy.

📞 Need Help Winning a Home in San Diego? Let’s Talk!

Bidding wars can be tough, but you don’t have to go through it alone. We’ve helped countless buyers win homes in San Diego’s competitive market, and we can help you too.

📩 Contact Trupp Real Estate Group Today!

📞 Call/Text: 801-647-7292
🏡 Visit Our Website

Let’s make your dream home a reality—even in a bidding war! 🏡💪