Bidding Wars Are Still Everywhere. Here Are 3 Strategies for Winning One

Give yourself an edge in today's tight housing market.

Today's housing market is a tough one for buyers to navigate for one big reason. There are a lot of people looking to purchase homes, and not enough available properties for sale. It's no wonder, then, that so many buyers are getting stuck in bidding wars.

In February, almost 72% of homes were subject to bidding wars, according to Redfin. In March, that number dropped slightly to a little over 69%. What this means is that you're more likely than not to encounter a bidding war in today's market, since housing inventory is only up modestly from several months ago.

Of course, bidding wars can be problematic for a number of reasons. First, they're just plain stressful. It's disconcerting to have to duke it out with at least one other buyer for a home you know you want.

Then there's cost to consider. A big reason home prices are so inflated right now is that bidding wars keep driving them upward. And seeing how it's gotten more expensive to take out a mortgage, you may not be able to afford a higher purchase price on a home. 

If you're worried about winning a bidding war, you're in good company. But here are some tricks that might work. 

1. Offer to pay cash

Sellers tend to favor cash offers for home purchases for one big reason -- you never know when a mortgage might fall through. If you're able to pay cash for a home, a seller may be more inclined to work with you off the bat rather than take a chance with another buyer.

Now you should know that paying for a home in cash carries risk -- namely, that you'll be tying up a lot of money in an asset that's not necessarily easy or quick to sell. But if you can afford to do that, you might easily beat out other buyers.

2. Get pre-approved for a mortgage

Getting pre-approved for a mortgage makes it more likely that you'll manage to actually close on one. That's something sellers are apt to take comfort in. And if you present a pre-approval letter when you make your bid, you might edge out other buyers who didn't take that step.

3. Appeal to your seller

Maybe you want to buy a given home because you're in love with its huge yard and can see your kids enjoying it. There's no harm in sharing that when you make your offer. It's actually common practice for buyers to write letters to sellers appealing to them for different reasons. Granted, in some areas, this practice may be banned, but your real estate agent can tell you if that's the case.

Entering a bidding war can be a frustrating, harrowing process. But unfortunately, it's something you may not be able to avoid this year if you're intent on buying a home. And so your next best bet is to give yourself the upper hand in a bidding war -- and make yourself more likely to emerge a winner.