Dear Monty: We are looking to buy. We've lost out on five homes. We currently own a home with about $270,000 in equity. In making offers, we've included the home sale contingency. Sellers don't like that. We've tried offers without a home sale contingency but with only a small down payment (conventional loan — we're already through underwriting and everything, but depending on timing, we may only have 5% to 10% down). We've seen that sellers also don't like small down payments when they have buyers with 30% to 50% or more down. We are looking at around $280-$350k. If the home sale contingency works, we can possibly pay cash. We're looking at older homes that are dated. We live frugally and want to prioritize something we could pay off within a couple of years. Additionally, these homes would likely have less competition since they're pretty ugly and not move-in ready. The reason for the move is to be in a specific area (and school district), get a brick exterior and have a flatter yard. These are our ultimate goals, so if the numbers make sense, we'd love to do it. Which would be the best offer to give us the best chance at going under contract: the home sale contingency or just a small down payment?

Monty's Answer: You have tried several options that have not worked for reasons you described correctly, and you have learned you have slight chance of winning in a seller's market. Here are several suggestions that may improve your odds dramatically:

No. 1: Check out for-sale-by-owner (FSBO) homes. Many agents avoid FSBOs because they are seen as a waste of time. Over 10% of all U.S. home sales are FSBO, and the percentage will continue to rise. Besides opening up more inventory to see, considering an FSBO can help you avoid paying a real estate agent commission.

No. 2: If you are working with an agent, ask them to search for expired listings or homes on the market for extended periods. Some home sellers need time to let the market wear them into reality.

No. 3: Refrain from letting the agent convince you to waive the home inspection. Since the bidding craze started, I have seen an uptick of buyers asking DearMonty what they can do to recover significant expenses that a home inspection would have uncovered. Be on high alert that you may have the wrong agent if they suggest waiving the home inspection. Many home sellers feel that an independent inspector's pre-sale home inspection shows they are transparent and have nothing to hide.

No. 4: Speak with a commercial lender at a bank instead of a residential mortgage lender. A typical mortgage lender does not have the tool you need to improve your chances. That tool is a personal note or a line of credit to free up your equity. The bank secures the loan with a first mortgage (or a second mortgage) on your home. Then, you can make a cash offer. You must demonstrate to the commercial banker that you have the income to carry the note for some time if your old home doesn't sell quickly. This suggestion originates from your estimate of equity in your home.

This final option defeats your initial options but is subject to obtaining the note on your current home.

Richard Montgomery is the Founder of PropBox, the first advertising platform in history to bring home sellers and buyers directly together to negotiate and close the sale. He offers readers solution choices for their real estate questions. Follow him on Twitter (X) @rmpropbox or DearMonty.com.

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