Home Price ProtectionHome SellersBuy Now
Home Price ProtectionHome SellersBuy Now

How to Enter Bidding Wars With Confidence

Be prepared with these strategies

How to Enter Bidding Wars With Confidence

Article summary

You found the home of your dreams, now it’s time to buy the home of your dreams. When other buyers are interested in the same house it can cost you if you’re not prepared to act strategically. Don’t let the competition of those buyers scare you away. Here are proven strategies you can use to enter -and win- a bidding war with confidence.

Get Pre-approved

Some buyers choose to be pre-qualified, in which the bank estimates how much home they can afford and shows that they’re already working with a lender. Pre-approval takes the process one step further. During the pre-approval process, lenders verify your financial information, adding credibility to your offer. An offer with pre-approval behind it will typically carry more weight than one without.

Search for Homes at the Low End of Your Budget

Bidding wars are going to raise the price of a home anywhere from a few thousand dollars to even a hundred thousand dollars, depending on buyers, the market, and the original home price. A bidding war that begins on the low end of your budget gives you more wiggle room to raise your offer. You never want to end up spending so much that you ultimately become house poor.

Make an All-cash Offer or Increase Your Down Payment

An all-cash offer isn’t feasible for most buyers. However, if this is something you’re able to provide, it signals a few things to the sellers. First, it eliminates all of the go-between that typically occurs with a buyer and lender, making the selling process short and sweet. Additionally, it proves the seriousness of your offer and intent to move forward very quickly. If an all-cash offer isn’t an option, consider increasing the amount of your down payment to catch the seller’s attention.

Include an Escalation Clause

An escalation clause is an incredible tool to utilize in a bidding war. It allows you to raise your bid in increments up to a maximum price you set. It streamlines the bidding and counter offer process, so you aren't constantly in touch with your agent for renegotiations.

For example, you make an initial offer of $290,000 on a home that you’re willing to pay a maximum of $350,000 for. If you know the sellers are receiving other offers, you can include an escalation clause that raises your offer by $5,000 more than competing offers. If another buyer offers $300,000, your offer is automatically raised to $305,000. This continues until (hopefully) your offer is accepted or the price is raised past $350,000.

Begin the process of new home ownership with confidence by utilizing Home Price Protection from REZITRADE. For around the cost of homeowner’s insurance, Home Price Protection can help you protect your home’s value if local home prices decline by making a monthly payout when home prices drop past a certain percentage.



  1. As you begin your home search, get pre-approved by your lender and consider looking for houses at the lower end of your budget.
  2. Cash is king. A large down payment or all-cash offer will spark a great deal of interest in your offer.
  3. An escalation clause- when used correctly- can be essential in helping you win the home of your dreams.

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