Bidding wars. Just the words alone are enough to give buyers nightmares, and make sellers jump for joy. Let's say you've finally found your dream home, but it just so happens that your dreams are in high demand. You know that money talks, but remember that bidding wars can be nerve wracking for the seller too. A seller wants to net as much as possible, but they also want to get the deal closed quickly and easily. Your job is to make an offer that is more attractive than the competition, and offers clear benefits to the seller. Here's how it's done:

1. Decide how much you can afford. It's easy to get caught up in the competition and emotion of a bidding war. If you have a firm limit set ahead of time, it's easier to avoid this pitfall. Do your research ahead, and pay special attention to the area's most recent sales.
2. Get pre-approved. Hopefully, you have already done this with your Loan Agent. Getting a letter of pre-approval tells the seller that you are ready to go and qualified to buy. Pre-approval alone may propel your offer to the head of the line.
3. Avoid contingencies. Contingencies are basically conditions on the sale, or in other words, ways you can get out of the deal. The most common contingencies are related to your ability to get financed and your physical inspection of the property. If you have serious concerns about the condition of the property, it may be best to hold out for an inspection, but weigh your options. An offer with fewer contingencies closes faster, has fewer loopholes, and can often be more attractive than other, higher offers.
4. Don't low-ball your offer. When competing against other offers, submitting an offer lower than the asking price is not just insulting, it's a waste of your time. It's best to offer your maximum bid, or close to it, because there's no way to know if you will get another chance. If you know there are going to be multiple offers and you are offering the asking price, be sure to sweeten the deal in other ways, such as requesting a quick closing, and waiving contingencies.
5. Offer a tempting deposit. An Earnest Money Deposit is a token of good faith, and a tool in securing your offer. There is no set amount, making this a good way for your offer to stand out. In a bidding war, offer no less than $5,000. 5-10 percent of the list price is generally considered to be a good guideline for aggressive offers.
6. Make it personal. Get to know your sellers. Ask them about the lives they've lead in the home and the ins-and-outs of the property. Make sure they know how much you love the neighborhood, the morning sun that comes through the kitchen, and the fruit trees they planted in the backyard. A little emotional investment goes a long way, especially when your sellers are sifting through offers from 'strangers'.
7. Give a quick closing date. When you make an offer, you will be asked to provide a suggested closing date. Make it quick. The seller may choose to change the date before accepting your offer, but faster is almost always better.
8. Don't haggle over details. Decide what really matters to you, and forget the rest. Small details like appliances, fixtures, and repair allowances can break a deal. In a bidding war, there's usually a backup offer waiting, so don't get too headstrong over small issues.

With a little thought and some tricks of the trade, your offer has a good chance of becoming a deal.

At the end of the day, remember to keep your cool. Make the best offer you can, and let go of emotional attachment. Win on your terms. If the deal starts to look less than attractive, don't be afraid to let it go. Play the game right, and you're sure to walk away a winner.