What to do if several buyers are bidding on the same property (bidding war)?

In Calgary, especially during peak seasons, properties can quickly find themselves in a situation where multiple offers are made on the same home at the same time. This type of competition, known as a bidding war, increases stress and can cause you to make impulsive decisions. However, there are clear steps and strategies you can take to help you identify the true value of a property, make a strong offer, and avoid overpaying.

Understanding market realities

When homes in desirable neighborhoods such as Altadore, Inglewood, or West Hillhurst come on the market, the likelihood of multiple offers increases. In such cases, the seller has the freedom to:

  • accept the most advantageous price offer,
  • reject all offers,
  • or request improved terms from selected buyers.

Agents are bound by a code of ethics to act honestly and impartially, so your chances depend directly on the quality of your offer.

Preparing financing and documentation

Before participating in a bidding process, you must obtain preliminary mortgage approval. A confirmation letter from your lender:

  • demonstrates your financial capacity,
  • is one of the key factors for the seller,
  • reduces the risk of the deal falling through.

Also, make sure you have a lawyer or notary ready to check the title and identify any encumbrances on the property.

Structuring your offer to win the competition

To make your offer stand out from the rest, you need to not only raise the price, but also optimize the terms:

  1. Increase the deposit amount A larger amount in escrow emphasizes the seriousness of your intentions and your financial stability.

  2. Shorten the terms of fulfillment

  • Reduce the financing period from 10 days to 5–7 days.
  • Conduct an inspection within 48–72 hours instead of seven days, after agreeing with the inspector in advance.

  1. Flexible transfer of ownership date Agree on it with the seller — this can be a decisive factor.

  2. Limit additional requests Waiving requirements for minor repairs, tree trimming, or removal of items reduces risks and speeds up approval.

Use the “escalation” mechanism

The escalation condition allows you to automatically increase your bid above the highest competitive bid up to a set maximum.

Example:

  • Starting price: $530,000

  • Maximum: $550,000

  • Bid increment: $2,000 You remain in the game without revealing your maximum amount right away.

Personal approach and strategic negotiations

Finances are important, but the human factor also plays a role. Write a short, sincere letter to the seller:

  • express your appreciation for their home,
  • tell them about your plans,
  • emphasize that you want to create a cozy family space.

It is important not to overdo it — excessive “sentimentality” can come across as speculation.

The role of a professional agent

An experienced licensed real estate agent is your main ally:

  • knows the specifics of the area,
  • analyzes previous sales,
  • advises on which aspects of the offer to emphasize,
  • monitors the submission of documents to avoid technical errors.

Risk management and avoiding overpaying

  • Always set a clear budget.
  • Before each bid, check the market value of similar properties.
  • Do not exceed your financial limits — overpaying can negatively affect your mortgage and well-being.

Conclusion

Competition among buyers in Calgary can be fierce, but clear financial planning, the right strategy, and professional support from a real estate agent greatly increase your chances of success. By securing reliable credit approval, optimizing your deposit and terms, and adding a personalized appeal to the seller, you significantly increase your chances of winning a bidding war.