The term " bidding war " is often used by buyer's and seller's, but the term implies that each buyer knows the amount of the other buyer's offer, which should not be the case, this is not an auction.
The correct term is " multiple offers " and although more often than not, the highest price offer wins, but this is not always the case.
These are some of the strategies that you can use, to get your offer accepted, when you are competing for a property against multiple other buyer's.
Offer Presentation - Ask the listing agent for the time and date that offers are to be presented, and ask if the seller is willing to look at offers prior to that date. If the seller will not look at offers prior to offer presentation, then it is a good practice to hold off on submitting your offer until the date of offer presentation. This way you will be armed with the most current up to date information, such as, how many other offers you will be competing with. If the seller has only one offer besides yours, then it is safer to assume the final sale price will be closer to the asking price, when competing against several other offers you can reasonably assume the home will sell over the asking price.
Clean Offer - Come in with a clean offer, meaning fewer or no subject conditions. Bring your home inspector with you to the showing, so that you don't need to be subject to an inspection. Have your financing pre-approved. Read all documentation such as strata documents prior to writing your offer. Sign off on the Title Search and Property Disclosure Statement and incorporate these into the offer. All things being equal, if it comes down to your offer and one other buyer's, and the offered prices are the same, the offer with the least amount of subject conditions should be the offer that gets accepted.
Offer Your Absolute Best Price - Put your best foot forward. If you truly are in love with this property, will you be angry at yourself if you find out the final sale price was only $5,000 above your offer? Money comes and goes but your dream home only comes along every so often. If this is just an investment property then feel free to negotiate, but if you love this home, come in with your absolute best price you can offer.
Dates - Contact the listing agent prior to writing your offer to find out what dates for Completion, Possession and Adjustments the seller would prefer. You may have to find temporary accommodations while you wait for the sale to complete, but this is a relatively small price to pay, if you love the property.
Deposit - Include a copy of your deposit cheque when you submit your offer, this will show the seller just how serious you are.
Included Items - Was there items you saw during the showing that you want to be included in the sale, such as furniture, decorations or tools? In a multiple offer situation, it is not a smart idea to ask for things to be included. The seller could be reviewing several offers and if your offer has a list of items that you would like, this can make your offer seem too convoluted. Wait to see if your offer can get accepted first, once you have an accepted offer, then you can negotiate for any items you want.
Heartfelt Letter - Write a heartfelt letter. This will not always pay off, but sometimes it helps if you write the seller a heartfelt letter. In your letter you can describe yourself and your family and why you love this property so much. People have a sentimental attachment to their homes and sometimes they want the home to go to someone who will love it as much as they have.
You might only have one shot at being the winning offer, do not assume you will get a counter offer. The seller has the upper hand in this situation, not the buyer. Don't be afraid to pay the above asking price, it's only money. Keep your offer clean. Don't ask for too many items to be included. Submit your deposit with your offer. Let the seller choose the dates they want. Include a heartfelt letter with pictures of your family, hopefully this will help to pull on the heart strings of the seller. You should have your own Realtor, working with the listing agent as an unrepresented buyer will create a conflict of interest for the listing agent, and real estate services are free to the buyer.
Now you know how to give yourself the best chance of being the winning offer and I wish you the best of luck!