8 ways to win a property bidding war

Here are our top tips to help you make a winning offer and secure your next home.

1. Show you mean business with a Mortgage in Principle

A mortgage in principle (MIP) is a document that indicates how much you might be able to borrow to buy a property. While it’s not a guarantee you’ll be able to get a mortgage for the same amount, it does show sellers and estate agents that you’re a serious buyer. This can put you in a great position if you’re up against other prospective buyers.  

After all, if you were selling a property, would you rather sell to someone who a lender has already assessed versus someone who simply told you they could afford to buy your home? 

2. Lead with your strongest offer

Keen to avoid a bidding war altogether? Offer your best price at the start. If someone goes higher, you’ll know it’s time to walk away. This can be less stressful than bidding in small increments, which can sometimes lead to buyers being tempted to go over their budget.  

Note: If you are the only buyer interested in a property, it’s generally acceptable to offer 5-10% lower than the asking price. But we’re talking about bidding wars, here, so if you know there are other offers on the table then there’s often little room for negotiating below the asking price. 

3. Don’t make an offer you can’t afford

This is, possibly, the most important tip to remember: set your buying budget, and stick to it. 

It can be easy to get carried away when you’re competing against other buyers, but overpaying could cause problems later. Whether you struggle to get mortgage approval at valuation stage or regret stretching your finances too thin, it’s always worth ensuring you only pay what you can comfortably afford. 

Unfortunately, 8% of first-time buyers do see their mortgage application rejected - even after successfully getting a MIP. So it’s important your house buying budget is realistic, and you’re financially ready before putting in an offer.

You should also make sure the price you’re offering is reasonable and realistic. Take a look at how much comparable homes have sold for in the local area or use Zoopla’s instant house valuation to give you an idea of the property’s value. 

4. Bid an odd number

Offering a more precise figure is more likely to be accepted, according to psychological studies. Sellers might place more value on a specific number rather than a round number, which suggests you’ve chosen a figure from random rather than working out those numbers. 

So, for example, instead of offering a nice neat £250,000, consider giving £250,500 a try instead. 

Top tip: It’s worth adding on top of a precise figure rather than falling below it, just in case another buyer offers that nice round number. 

5. Match the seller’s timeline

It’s not all about the money. Many sellers would love a stress-fee, straightforward process! 

If you can, find out why and when they want to sell. This could help you to offer flexibility, which may well persuade the seller to choose you over other buyers who may have their own set timelines in mind.

For example, the seller might be keen for a quick sale or they might actually need extra time to move out and be looking for a more patient buyer. This is, again, where being chain-free can be advantageous as you won’t have any additional pressure from your own buyer to worry about. 

6. Be responsive

Waiting around a week or two to put in an offer will likely see you lose out to another buyer who’s ready to make a quick decision. Of course, don’t rush into your decision, but don’t ghost the seller either. Poor communication is a big red flag. After all, this gives the seller an idea of what it’ll be like to deal with you throughout the process. 

It’s also worth remembering that estate agents play a key role so, while they won’t be able to influence the sale, it can’t hurt to be polite and pleasant to deal with. 

7. Sell yourself… but be realistic

Some homeowners may be more motivated to sell to a buyer they connect with. So, when providing your written offer to the estate agent, consider including a short note explaining your position and why you want to buy the house. 

A word of warning, though. Overly emotional letters may feel manipulative, and are often unlikely to even make their way to the seller. Stick to the facts and highlight why you’d be a great, reliable buyer. For example, if you’re a first-time buyer or coming to the sale chain-free, make sure your seller knows about it! 

8. Be a ready-to-go buyer

If you already own a home, you’ll have a better chance of having your offer accepted if it’s ‘sold subject to contract’, which means you already have a buyer lined up. It’s not unheard of for some buyers to sell up and move into rental accommodation before searching to improve their chances of securing their perfect home, though this comes with its own risks. Our guide on how to buy and sell at the same time goes into more detail. 

If you’re a first-time buyer, you have a natural advantage here as you’re not part of a chain. Sellers love a smooth sale, and a chain-free buyer reduces the risk of delays or deals falling through.