What if your next home did not come with a mortgage payment? It sounds ambitious. But for many current homeowners, it is completely possible.
Nearly 3 in 10 homes purchased today are bought in cash, according to the National Association of Realtors (NAR). That’s far more than the pre-pandemic norm (see graph below):
So, how are so many buyers pulling that off? The answer is simple: home equity.
During 2020 and 2021, mortgage rates were historically low. Inventory was tight. Demand was strong. That combination pushed prices up quickly.
If you owned a home during that time, there is a good chance its value increased substantially. For some homeowners, that growth created enough equity to purchase their next property outright. NAR explains:
“. . . rising home equity has armed many existing homeowners with the financial leverage to make cash offers, allowing them to convert years of price appreciation into immediate purchasing power.”
Here’s why you may want to go that route yourself, if you have enough equity to do it.
1. Your Offer Stands Out
One of the biggest risks in any transaction is financing. When a buyer depends on a mortgage, there is always the chance the loan does not get approved. As Rocket Mortgage explains:
“Cash offers are attractive to sellers. Sellers often prefer to work with cash buyers if they can because they don’t have to worry about a buyer’s financing falling through at the last minute.”
Removing financing from the equation can make your offer stronger, especially in competitive markets.
2. You Can Close Faster
Without underwriting and lender conditions, the process moves faster. Cotality puts it this way:
“Cash buyers have always enjoyed an edge over borrowers. They remove financing risk, reduce delays, and often close in days rather than weeks.”
For sellers who need to move quickly, that speed can make a meaningful difference.
3. No Mortgage Payments
When you buy in cash, you don’t have to finance your purchase. That means you don’t have to worry about what today’s mortgage rates are and you own the house outright from the day you close. And that’s a big deal.
No mortgage.
No monthly payment.
Full ownership.
That financial freedom opens the door for other big lifestyle benefits. Zillow explains:
“Paying in cash means you own your home outright. This eliminates the need for monthly mortgage payments, freeing up your finances for other priorities like savings, travel, or home improvements.”
4. You May Get a Better Deal
This is the part that surprises many sellers. Cash buyers often pay less for the house.
According to Cotality, all-cash buyers tend to spend roughly 9% less on the house than buyers who use a mortgage. That’s because some sellers are willing to accept lower offers to get a deal done quickly, with more certainty of closing, and fewer financing hoops to jump through. As Cotality explains:
“From a seller’s point of view, a lower but reliable offer can feel preferable to a higher one that may collapse weeks later.”
And that pricing gap has widened over time (see graph below):
Is Buying In Cash an Option for You?
Not every homeowner will choose to purchase their next property outright. And that is perfectly fine.
The key takeaway is this: your equity may give you more flexibility than you think.
Whether that means downsizing and eliminating a mortgage entirely, or just relocating with stronger negotiating power, your current house may be what makes it possible.
If you want to explore what your equity could allow you to do, let’s review your numbers and look at your options.
Vesta Schneider
Realtor®
Luxury Homes | Relocation | Investments
Keller Williams Realty McKinney
📞 302-530-7314
📧 vestaschneider@yahoo.com
