Bidding Wars Are Down but Not Gone. Here's How to Win One

It's important to have the right strategy.

There's a reason buying a home has become such a stressful endeavor these days. Not only are housing prices through the roof, but there's a glaring lack of inventory on the market (and there has been for months on end). That's forced many buyers into a situation they'd rather avoid -- a bidding war.

The good news is that 44% of real estate agents say bidding wars are on the decline, according to a recent HomeLight survey. But that doesn't mean they're gone for good. And seeing how there's still not enough housing inventory to meet buyer demand, anyone looking to purchase a home in the near term should go in with a solid bidding war strategy. Here are a few tactics that could help you emerge a winner.

1. Pay cash if possible

Most people don't have hundreds of thousands of dollars lying around to pay for a home outright. Rather, the typical buyer ends up taking out a mortgage.

But if you happen to have a pile of cash on hand -- maybe you just got an inheritance -- then making a cash offer could be your ticket to winning a bidding war. That's because any time a seller works with a buyer who needs a mortgage, that home loan has the potential to fall through. With a cash offer, that's not a concern.

And also, cash purchases can close much faster than those that hinge on financing. For sellers looking to move in a hurry, that could be huge.

2. Get pre-approved for a mortgage

Getting pre-approved for a mortgage doesn't guarantee you a home loan. But what it does do is send home sellers the message that you're a serious buyer whose finances have already been looked at.

Say you're looking to buy a home that will require you to take out a $400,000 mortgage. If you go in with a $400,000 pre-approval letter in hand, a seller might not worry so much about your financing falling through. And if you're the only buyer with pre-approval, you might edge out the competition and get to purchase the place you want.

3. Be as flexible as possible with your closing date

You may come across a seller who wants to close on their home immediately. Or, the opposite might happen. You could find a seller who specifically does not want to close for a good four or five months (say, to wait out the school year). If you're willing to give a seller the flexibility they need, you could end up winning a bidding war.

Granted, in that situation, you might have to make adjustments to your own plans or figure out temporary housing. But if the home in question is priced right and it's a property you really like, it may be worth that sacrifice.

While bidding wars may be on the decline, you can't assume you won't land in one. But if you employ these strategies, you might manage to emerge victorious with a home to call your own.