The person who offers the most money usually wins the bidding war. To prepare for a bidding war, you can make sure you are pre-approved for a mortgage, have cash on hand for the downpayment, make a competitive offer, and waive contingencies, like a home inspection. Many sellers prefer buyers who can pay all cash versus using a mortgage, so even if you offer less than the highest bid, you might win the war if you can pay for the home in all cash.