A "bidding war" occurs when multiple buyers compete to purchase an item, property, or service, driving the price higher. This situation often arises in real estate, where interested buyers submit increasingly higher offers to outbid one another. The competitive nature of a bidding war can lead to significant price increases beyond the initial asking price. Bidding wars can also happen in auctions, where participants raise their bids in real-time to secure an item. Factors such as market demand, rarity of the item, and buyer motivation can influence the intensity of the bidding war. Ultimately, the highest bidder wins the item or property.