Some would-be homebuyers these days are having trouble even booking a home tour because of the crowds that pounce as soon as good listings go live.

“We are deeply into a seller’s market,” says local Flyhomes agent Jack Schwabeland. “As a buyer, you need to be prepared to compete with other buyers.”

The first thing to know is that competition drives prices up. In May, single family homes in Seattle sold at a median of 107% compared to list price—so a house listed at the median of $815,000 would sell for about $856,000. For the most appealing homes, that percentage goes way up.

“You almost never pay list price,” says Schwabeland. “It’s a marketing strategy, not an indicator of the home’s value. In Seattle, it’s common for sellers to price a home well under where they expect it to sell.”

The good news: competing isn’t only about price. In 2020, 53% of Flyhomes homebuyers who won bidding wars won against higher offers.

As part of the team that prioritizes helping buyers win in competition, Schwabeland shared his tips to become a victorious bidder

1. Keep an eye on local market data. Simply knowing what’s going on will help you set realistic expectations. Aside from sale prices, pay attention to how quickly homes are selling (days on market) and how much inventory is available. Find an online source you trust and dig in.

2. Be absolutely sure of your budget. Many buyers wait too long to start working with a mortgage lender. Getting underwritten as a buyer should be your first step. More comprehensive than pre-qualification, underwriting gives you an on-paper commitment from a lender about a specific loan you qualify for. Then, when you offer, the seller has no reason to question whether your financing is solid.

3. Understand appraisal risk. With homes selling above list price, there’s the potential for an appraiser to value a home well below what you’re willing to pay for it. In turn, the lender won’t give you a loan for more than the appraised value. Plan for this potential gap with your agent to avoid having to back out on an offer.

4. Make your offer a cash offer. Flyhomes has a program that helps buyers make a cash offer without having the cash on hand. Sellers love to receive cash offers because they close quickly and offer the highest degree of certainty about you as a qualified buyer.

5. Talk to your agent about removing contingencies. “A lot of buyers are waiving contingencies,” says Schwabeland. Contingencies protect the buyer in case a certain condition isn’t met. On the downside, they give sellers reason to doubt the deal will go through. Ask your agent for strategies to confidently make an offer with few or no contingencies.

6. Start with your strongest offer. Now isn’t the time to underbid and leave yourself room to negotiate. When sellers receive multiple offers, they often don’t make counter offers. Instead, they choose the best one from the initial batch. Go in with your strongest scenario from the start.