Winning a home-buying bidding war often means breaking the rules. Discover five unconventional strategies that can help you secure your dream home in a competitive market.

One summer Saturday, Beverly Harzog and her husband stumbled upon their dream home at an open house just as it was closing. Within moments, they were smitten. The size was perfect, the amenities were stunning, and the backyard was incredible. However, the next day, they learned they weren’t alone in their interest; 28 other potential buyers had the same idea.

Welcome to home hunting during the pandemic. With fewer houses available during COVID spikes, the U.S. housing market has soared, with home prices hitting unprecedented highs in early 2021.

Home inventory isn’t likely to return to pre-pandemic levels soon. A Zillow report revealed that only about 15% of homeowners plan to sell within the next three years.

In Harzog’s case, she and her husband had no real estate agent, weren’t pre-qualified for a mortgage, and their current home wasn’t ready for sale. Despite only casually looking, they decided to take a chance, backed by solid credit and determination.

“There are always alternatives,” Harzog, a credit expert, explained. “I informed the agent about my high credit score to assure them financing wouldn’t be an issue.”

In 2021, it seems all’s fair in love and bidding wars. If you're aiming to triumph in a bidding war, here’s how Harzog and other eager buyers have defied traditional real estate wisdom to achieve success.

BROKEN RULE 1: SKIPPED USING A REAL ESTATE AGENT

Since they weren't actively searching for a new home, Harzog and her husband didn’t have an agent ready. “We had done our research, and being a credit expert, I felt capable. You can begin your search even without an agent.” When the opportunity arose, Harzog sent her offer directly to the seller’s agent.

They don’t dismiss real estate agents altogether; they just found themselves in a unique situation. Impressed with the seller's agent, they later hired her to sell their previous home once their new purchase was finalized.

BROKEN RULE 2: DIDN’T GET PRE-APPROVED FIRST

After learning about the 28 competing offers, Harzog shared her impressive credit score with the agent, which exceeded 800, to assure the sellers of her financial ability to close quickly. The seller’s agent even connected them with someone who could pre-approve their loan on a Sunday.

This method may not be feasible for everyone. Those with lower credit scores might face months of waiting for loan approval. However, if you have good credit, this process can be expedited significantly.

BROKEN RULE 3: WAIVED INSPECTION AND USED AN ESCALATION CLAUSE

Having owned homes for nearly 30 years, Harzog and her husband spent about 90 minutes thoroughly inspecting the property that Sunday, confident enough to waive contingencies like a home inspection. “We knew what to look for. We decided to take the risk,” she shared.

Jeremy Schneider, a broker, notes that minimizing contingencies can be crucial in standing out against other bidders. “Buying as-is or conducting an inspection solely for informational purposes can definitely enhance your chances,” he advises. However, this approach depends on the property’s age and condition, as well as the buyer’s readiness to handle repairs.

BROKEN RULE 4: TURNED DOWN LEASE BACK, OPTED FOR 90-DAY CLOSING

While cash often reigns supreme in offers, it’s not always the deciding factor. Mark Dimas, a broker in Houston, recounted a client who refused to increase their offer price due to appraisal concerns. The seller wanted a 60-day lease back while relocating, but the buyer’s flexible closing timeline allowed them to bypass this request.

Instead of upping the offer, the buyer committed $20,000 in earnest money. Ultimately, they closed on their dream home, sticking to their budget and accommodating everyone’s timeline.

BROKEN RULE 5: HELD BACK $100,000 ON THE HIGHEST OFFER

Although Harzog and her husband were eager for the house, they chose to start lower than their maximum budget to save room for a potential bidding war. “We initially set a lower target, reducing it by $100,000, knowing that in our area, offers often exceed the list price by that much,” she explained. “We had a limit, but we began with less than we could spend.”

Ultimately, Harzog attributes the success of their offer to the escalation clause and her genuine love for the property. “I communicated to their agent how much I adored their house and my intent to cherish it.”