- Getting preapproved for a VA loan and leading with a strong, well-informed offer can make you more competitive in a bidding war.
- Flexibility with contingencies, communication and understanding the seller’s needs can help your VA offer stand out.
In today’s competitive real estate market, finding your dream home is only half the battle. Securing it can be an entirely different challenge. In many areas across the country, homebuyers are facing bidding wars, where multiple offers drive up home prices and put added pressure on buyers.
The good news? VA buyers are in a strong position, even in tough markets. But understanding how to avoid, or win, a bidding war on a house can make the difference between a successful purchase and starting your home search all over again.
Whether you're buying your first home or your third, preparation and strategy are key. Below, we’ll walk you through what a bidding war looks like with a VA loan and share nine actionable tips to help you stand out from the crowd and potentially avoid the bidding war altogether.
What is a Bidding War and How Does it Work?
A bidding war occurs when multiple buyers submit offers on the same home, often driving the final sale price above the initial listing price. These situations are especially common in hot markets with low housing inventory but high buyer demand.
When it comes to a bidding war on a house, sellers may set a deadline for offers or allow negotiations to continue until they select the strongest offer. While price is a major factor, other elements — like contingencies, closing dates and even how easy the buyer is to work with — can help tip the scales.
Bidding Wars With a VA Loan
VA buyers may feel hesitant competing with conventional or cash buyers in a multiple-offer situation. But VA loans have strong advantages, such as no down payment and limits on closing costs, that can make your offer highly attractive when presented the right way. Working with a trusted VA-savvy agent and being proactive with your offer are key to success.
Tips to Win a Bidding War
Don’t be discouraged if you find yourself in a competitive situation. Whether you’re trying to avoid a bidding war or strengthen your offer in one, these strategies can help you win, especially with a VA loan.
1. Get VA Mortgage Preapproval
Before making an offer, ensure you’re preapproved for a VA loan, not just prequalified. A preapproval shows sellers that you’re already vetted by a lender and a serious, ready-to-act buyer. A prequalification does not take as much work to receive and holds less weight with the seller.
VA loan preapproval letters are powerful tools in a competitive market and can make your offer more appealing from the start. If you work with Veterans United as your lender, getting your preapproval is simple – you can log in to your MyVeteransUnited® account, download your letter and print it.
2. Submit a Strong Offer Upfront
In multiple-offer situations, you may not get a second chance to negotiate. Lead with your best and most competitive offer. This doesn’t always mean offering far above the asking price. It can also mean being flexible with the seller’s needs or limiting contingencies.
If you're unsure how to tailor your offer, ask your real estate agent to find out what matters most to the seller. They may need a fast close or prefer a longer move-out window.
3. Ask About Competing Offers
Your agent should reach out to the listing agent and ask if other offers are on the table. While sellers don’t always disclose that information, especially in states where it's not required, knowing whether you’re in a multiple-offer scenario can help shape your strategy.
In some cases, the seller’s agents may speak more specifically to what the seller wants and what other buyers can offer, so you can craft your most compelling offer. Just be sure your agent is respectful and follows state-specific guidelines when inquiring about competing bids.
4. Limit Contingencies
Sellers often prefer clean offers that come with fewer potential roadblocks. While it’s important to protect yourself with essential contingencies, like financing and inspections, try to avoid including cosmetic repair requests or other nonessential conditions. In a bidding war, you need to present the most convenient offer for the buyer.
Flexibility can go a long way here. For instance, being open to the seller’s preferred closing date or offering to handle minor repairs can help your offer stand out.
5. Amp Up Earnest Money
Earnest money is a deposit you put down to show you’re serious about buying the home. While this isn’t specific to VA loans, it can be a powerful tactic in a bidding war on a house.
Talk with your agent to figure out what level of earnest money deposit is considered competitive in the local market. Offering more than the standard amount can demonstrate your commitment and reassure the seller that you’re unlikely to back out without cause. Just be sure not to overextend yourself financially.
6. Be Available and Communicative
In a competitive market, responsiveness matters. A buyer who’s quick to respond and easy to work with can be more appealing than one with a slightly higher offer but slower communication. Efficient communication also shows you are an interested buyer, not one who will try to get out of a sale.
Let your agent know you’re available for questions or decisions, and make sure they’re in regular contact with the listing agent. Sellers want a smooth transaction, and reliable buyers help make that happen.
If you’re looking for an agent well-versed in VA loans, Veterans United Realty can connect you with trusted professionals across the country.
7. Consider a Personalized Touch
Sometimes, adding a personal letter with your offer can help humanize your bid. Let the seller know why you love the home and how it fits into your family’s future. While this won’t work in every situation, and some agents advise caution due to Fair Housing concerns, it may be worth discussing with your agent.
8. Understand Your Local Market
Each housing market is different. In some places, offering $5,000 over asking might win the deal; in others, you may need to go significantly higher. Working with a knowledgeable local agent can help you make informed decisions based on current market conditions.
Understanding comparable home prices (“comps”) can also help you decide how aggressive your offer should be.
9. Stay Calm and Be Ready to Walk Away
While getting emotionally attached to a home is easy, it’s important to set a budget and stick to it. A bidding war can easily stir emotions and tempt buyers to stretch beyond their financial comfort zone. Don’t let the pressure of competition override your long-term goals.
By being prepared and working with a trusted VA lender and agent, you’ll be ready when the right opportunity comes along.
Bottom Line on Bidding Wars
Navigating a bidding war with a VA loan isn’t just about offering the highest price – it’s about showing sellers you’re serious, prepared and easy to work with.
When you take the right steps early, you put yourself in the best position to win – or avoid – a bidding war on a house. With the unique advantages of a VA loan, you have powerful tools on your side.
Looking for guidance on your next move? Veterans United is here to help you confidently navigate the journey to homeownership. Reach out to a Veterans United home loan specialist today at 855-870-8845 or get started online today.
How We Maintain Content Accuracy
Our mortgage experts continuously track industry trends, regulatory changes, and market conditions to keep our information accurate and relevant. We update our articles whenever new insights or updates become available to help you make informed homebuying and selling decisions.
Current Version
Oct 27, 2025
Written BySamantha Reeves
Reviewed ByTara Dometrorch
Updated article for readability. Content reviewed and fact checked by team lead underwriter Tara Dometrorch.
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