When you find the home of your dreams, you might get lucky and learn that your offer on the property will be uncontested. It's entirely possible, however, that you'll have to compete with others to make the residence your own.

A bidding war may be limited to you and one other party, or there may be several buyers scrambling for the same property. No matter what the circumstances are, you'll want to avoid the errors that might cause a seller to discount your offer entirely.

If you don't know the market conditions ahead of time, you can easily get caught off guard by a bidding war. Craig Dinofrio, writing for the National Association of Realtors, says you're most likely to face competition if the market is popular among buyers and has limited inventory.

There are many sources of information you can look to when researching the market. Glenn Kelman, writing for the real estate company Redfin, says you should look into the listing agent and their sales history. You'll also want to look up recent sales in the neighborhood and among comparable properties to get an idea of what offers are being accepted.

Don't ignore an opportunity to attend an open house. In addition to the benefit of viewing the property in person, you can see how many other people have been drawn to the listing. While not everyone who comes to tour the house will make an offer, Dinofrio says the chances of a bidding war will increase if a big crowd attends the showing.

Sellers will want to know that you have the ability to purchase their home, so they're more likely to favor offers accompanied by some financial assurance. Donna Fuscaldo, writing for the financial site Bankrate, says a pre-approval letter from a lender will come in handy, especially if you are competing against cash offers.

Paying with cash is certain to catch a seller's attention, though if you choose this option you'll want to provide a bank statement demonstrating your ability to use this method. A significant down payment or large earnest money deposit are also likely to impress a seller. Dinofrio says a large earnest money deposit should be at least 1 percent of the offer.

One of the surest ways to knock yourself out of a bidding war is to make a lowball offer. Even if you write a heartwarming letter about how you love the property and can only afford the lower figure, a seller is more likely to go with a higher offer.

While an unrealistically low offer is likely to offend a buyer, they might still consider you even if your proposal doesn't have the highest dollar amount. Kelman says a seller can find great value in your offer if you are flexible on certain conditions. You might offer to help the seller with the transaction by taking on more of the closing costs or giving them extra time in the home if they need a few days to wrap up a move.

For this reason, communication is key. If you are late in responding to your agent's calls or e-mails, they will have a harder time working with the seller and you might even miss an important deadline. Dinofrio says it is especially egregious if you go on vacation or otherwise disappear in the middle of the proceedings.

Don't let your offer and communications come across as disorganized. Kelman says your agent can prepare a summary of your offer, and you can also write a letter appealing to the seller. Be aware of the seller's needs, make sure you don't miss any deadlines, and double-check your materials for any typos.

While making several concessions to the seller or offering a hefty sum for the property can strengthen your offer, you don't want your victory in a bidding war to be a Pyrrhic one. Dinofrio says your offer should be realistic when it comes to both the home's value and the price you can afford to pay.

If you are especially eager to own a property, you can consider an escalation clause. This condition allows your agent to make incremental increases to your offer up to a certain point, reducing the chance that you'll lose a bidding war simply because another party offered slightly more than you.

Cutting down on the number of contingencies in the offer, such as offering to buy a home as is, can appeal to a seller by speeding up the transaction. Dinofrio says it may even be possible to waive an appraisal if you are making a cash purchase, although you should be confident that your estimate of the home's value is accurate.

Waiving a home inspection is generally not advised, since it can leave you on the hook for some costly repairs after your offer is accepted. However, Fuscaldo says some sellers will offer an inspector's report to any prospective buyers; a follow-up inspection can wait until after your offer to verify the report. If you have a friend who works as a home inspector or is otherwise knowledgeable about structural conditions, ask them to tour the home with you to see if they notice any serious issues.

If a seller informs you that they are going with another offer, don't immediately admit defeat. Michael Corbett, writing for the real estate site Trulia, says there is still the possibility that this offer will fall through before closing.

By simply asking a seller to consider you as a backup option, your offer will remain on the table if their first choice does not work out. Corbett says you should make sure to get this offer in writing.