The Overlooked Advantage Repeat Buyers Have Right Now

What if your next home came with no mortgage payment at all? It might sound unrealistic at first—but for many homeowners today, it’s actually possible.

In fact, nearly 3 out of every 10 homes purchased today are bought with cash, according to the National Association of Realtors. That’s a much higher share than what we typically saw before the pandemic (see graph below).

So how are so many buyers making that happen? The answer is straightforward: home equity.

During 2020–2021, mortgage rates were at historic lows while the number of homes for sale was extremely limited. That combination drove home prices up quickly.

If you owned a home during that period, there’s a good chance its value increased significantly—possibly enough to allow you to purchase your next home entirely in cash. The National Association of Realtors notes:

“As home equity has grown, many current homeowners have gained the financial flexibility to make cash offers, turning years of home price appreciation into immediate buying power.”

Here’s why taking this approach could make sense for you—especially if you’ve built up enough equity to make it possible.

1. A Stronger, More Competitive Offer

Sellers value certainty, and a cash offer removes one of the biggest variables in a real estate transaction: financing. Without a loan involved, there’s far less risk that a deal could fall apart late in the process. As Rocket Mortgage explains:

“Sellers often favor cash offers since they eliminate the uncertainty of a buyer’s loan approval falling through late in the process.”

In many markets, an all-cash offer can give you a serious edge.

2. Close the Deal More Quickly

Because there’s no lender involved, you can skip steps like underwriting, loan approval, and mortgage processing—often shortening the time it takes to reach the closing table. As Cotality explains:

“Cash buyers have long had an advantage in the market. Without financing hurdles, transactions tend to move faster and can often close in days instead of weeks.”

If the seller is already under contract on their next home or needs to relocate quickly—such as for a new job—a faster closing can be especially appealing.

3. You Eliminate Monthly Mortgage Payments

When you purchase with cash, there’s no need for financing — which means mortgage rates won’t impact you. You take full ownership at closing and avoid long-term debt on the property.

No mortgage.

No monthly mortgage payment.

Complete ownership

That kind of financial flexibility creates room for other meaningful lifestyle advantages. Without a loan payment, your monthly cash flow improves — giving you more control over how you allocate your money. As Zillow explains:

“Buying with cash means you own the home outright. It removes the burden of monthly mortgage payments and gives you more flexibility to direct your money toward savings, travel, investments, or upgrades to your home.”

4. You Could Secure a Better Price

One thing that surprises many homeowners is that cash buyers often secure a lower purchase price.

Data shows that cash buyers typically pay less for a home compared to buyers using financing — often around 9% less on average. Sellers may accept a slightly lower price in exchange for speed, certainty, and a smoother transaction without financing conditions. As Cotality explains:

“From a seller’s perspective, a slightly lower offer that is secure and unlikely to fall through can be more attractive than a higher offer that carries uncertainty and potential delays.”

That edge has become more noticeable over time (see the graph below).

Is a Cash Purchase a Real Option for You?

Not every homeowner will purchase their next home entirely in cash — and that’s perfectly fine.

The key point is this: the equity you’ve built could provide more flexibility than you realize.

That might mean downsizing and removing your mortgage altogether, or moving to a new home with stronger negotiating power. In many cases, your current property is what makes those opportunities possible.

Bottom Line

Before automatically assuming you’ll need another standard mortgage, take a closer look at one key question: How much equity have you built? The answer could reshape your expectations for what’s possible next.

Wondering what your equity could unlock? Connect with a local real estate professional to review the numbers and understand the purchasing power you may already have.

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