Navigating the housing market is already tough, but if you’re going through a divorce, it’s even tougher.
Competing against cash buyers, dealing with high home prices, and facing strict lending requirements can make securing your next home seem impossible.
However, with the right strategies, you can level the playing field.
This post will walk you through smart moves to help you compete more effectively—whether that’s by securing full preapproval, using delayed financing, offering leasebacks, and more.
These tactics can help you succeed, even during one of life’s most challenging transitions.
Obstacles for Borrowing Homebuyers
Lending Red Tape vs. Cash Buyers
Cash buyers have a clear advantage—they can skip the lending process, making their offers more appealing to sellers who want a quick, hassle-free close.
For divorcing borrowers relying on financing, the road is a bit bumpier. You’re dealing with lender requirements like credit checks, appraisals, and underwriting, which can delay the process.
Pro Tip:
Work closely with your lender to streamline your paperwork and anticipate lender requests early. This can help shave days off your timeline, helping you compete against cash buyers.
For example, one of my clients was able to secure a home by completing all the necessary paperwork upfront, making their financed offer as clean as possible.
High Home Prices
High home prices can be especially challenging when you’re working with one income post-divorce. It’s not just about affording the monthly payments—it’s also about coming up with a larger down payment and meeting tougher loan qualifications.
Pro Tip:
Consider homes slightly below your budget to allow flexibility for bidding wars.
Also, explore creative financing solutions like using retirement assets or shared equity agreements to meet these price demands. Some clients have also found success purchasing fixer-uppers and investing in renovations over time to lower upfront costs.
High Down Payment Requirements
A large down payment can feel like an impossible hurdle, especially if your finances are strained by divorce. But there are options.
Pro Tip:
Look into gift funds from family or down payment assistance programs that cater specifically to those in transition, like divorcees.
Additionally, using equity from a marital home can provide a down payment boost. One client, for example, leveraged their share of the home’s equity to secure a new property without depleting savings.
Confusing Contracts & Commissions
Recent shifts in buyer agent commissions have added a layer of confusion for many buyers.
Traditionally, sellers covered the buyer’s agent commission, but now buyers are increasingly responsible for these fees. For divorcing buyers, already tight on finances, this can be a shock.
Pro Tip:
Always clarify who’s paying commission upfront and factor that into your overall budget.
Additionally, some buyers have had success negotiating lower commission rates, especially if their offer is strong and straightforward.
How to Get the Upper Hand
1. Drop the Contingency, Secure Full Preapproval
In competitive markets, sellers want certainty.
Dropping contingencies—like inspection, appraisal, or financing—makes your offer more appealing. However, this comes with risks.
Skipping inspections or appraisals could mean you miss costly issues, or you might overpay for the property.
Pro Tip:
Have a full preapproval in hand before making an offer.
This proves to the seller that your financing is secure, significantly reducing the risk of delays. One client used this strategy, securing a home by offering a preapproved, contingency-free bid that was too good for the seller to pass up.
2. All Cash Offer – Delayed Financing
An all-cash offer is incredibly attractive to sellers because it guarantees a fast, smooth transaction.
For divorcing buyers, coming up with cash upfront may seem impossible, but there’s a workaround: delayed financing.
Pro Tip:
Offer an all-cash deal using available funds or bridging the gap with temporary financing, then secure a mortgage after the sale to recoup your liquidity.
This gives you the edge of a cash buyer while still benefiting from traditional financing.
3. Increase Your (EMD) Earnest Money Deposit
A larger Earnest Money Deposit (EMD) signals to the seller that you’re serious and less likely to back out.
It also shows that you have more “skin in the game,” reducing the seller’s perceived risk.
Pro Tip:
If possible, offer a larger EMD to make your offer stand out, especially when competing against multiple bids.
This simple tactic worked wonders for one of my clients, who secured a competitive home by offering an EMD twice the usual amount, showing the seller their commitment.
4. Minimize Your Demands
Sellers love offers that are clean and straightforward.
Avoid bogging down your offer with too many repair requests or demands.
Pro Tip:
In highly competitive markets, consider focusing only on major repairs or structural concerns, and leave out minor requests.
For example, one client chose not to ask for small cosmetic fixes and won the bid by being flexible, while other buyers insisted on minor adjustments.
5. Offer a Free 30-Day Lease Back
Offering sellers a free 30-day leaseback gives them breathing room after the sale.
This is especially helpful for sellers who need extra time to find their next home or move.
Pro Tip:
Including a free leaseback can make your offer more appealing, especially when the seller values convenience and flexibility.
6. Build a Strong Buyer Profile
Sellers are looking for reliable, financially secure buyers.
Have your lender vouch for your ability to close quickly and make sure your credit history is clean.
A strong buyer profile can help you stand out, even against higher offers.
One client won a bid despite not having the highest offer simply because the seller felt confident in their ability to close without issues.
7. Understand the Seller’s Needs
Tailor your offer to meet the seller’s priorities.
Some sellers may want a fast close, while others may need flexibility on move-out dates.
Have your agent ask what’s most important to the seller. By offering what they need most, you can win without necessarily having the highest offer.
One client won their home by being flexible with the closing timeline, which perfectly aligned with the seller’s needs.
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In today’s market, smart strategies can make all the difference.
By dropping contingencies, offering all-cash with delayed financing, minimizing demands, and offering leasebacks, you can position yourself as the buyer sellers prefer.
For divorcing clients, these tactics are even more critical given the complexities of your financial situation.
Being well-prepared and flexible gives you the best chance to secure your next home, even against cash buyers.
At Divorce Mortgage Advisors, we specialize in helping divorcing clients navigate these challenges. Our deep understanding of both the real estate and mortgage process will help you craft a winning offer without sacrificing your financial goals.
Contact us today for advice on standing out in this competitive market and securing your new home with confidence.
We’re here to help you succeed, even in the toughest circumstances.