The Hidden Advantage Repeat Buyers Have in Today’s Housing Market

How Home Equity Is Helping Homeowners Buy Their Next House in Cash

What if you didn’t have a mortgage payment on your next home?

It may sound unrealistic. But for many repeat buyers, it’s more achievable than they think — thanks to rising home equity.

According to the National Association of Realtors (NAR), nearly 3 in 10 homes purchased today are bought with cash — well above pre-pandemic levels (see graph below):

So how are so many buyers purchasing homes outright?

The answer: home equity growth.

Why Repeat Buyers Have a Major Advantage Right Now

During 2020–2021, mortgage rates hit historic lows and housing inventory dropped sharply. That combination drove rapid home price appreciation across the country — including here in Edmonds and throughout the greater Seattle area.

If you owned a home during that time, there’s a strong chance your property gained significant value.

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.”

In other words, your current home may be the key to buying your next one — possibly without a mortgage.

Here’s why that matters.

1. Cash Offers Are More Attractive to Sellers

When selling a home, certainty matters. An all-cash offer eliminates financing risk — one of the most common reasons real estate contracts fall apart.

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.”

In competitive markets like Edmonds, Shoreline, and North Seattle, that can give repeat buyers a serious edge.

2. You Can Close Faster

Financing adds time. Underwriting, loan approvals, appraisals, and processing delays can stretch a transaction out for weeks. Cash purchases skip that process. According to Cotality:

“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 — relocating for a job, downsizing, or already under contract on another home — speed can make your offer even more appealing.

3. No Monthly Mortgage Payments

Buying a home in cash means full ownership from day one.

No mortgage.
No monthly principal and interest payments.
No exposure to today’s interest rates.

As Zillow notes:

“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.”

For downsizers and retirees especially, eliminating a mortgage can dramatically improve long-term financial flexibility.

4. You May Get a Better Deal

Here’s something many homeowners don’t realize: cash buyers frequently negotiate better prices.

According to Cotality, all-cash buyers pay roughly 9% less than buyers who finance their purchase.

Why? Because sellers often prefer a slightly lower, reliable offer over a higher offer that carries financing uncertainty.

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.”

That price advantage can significantly increase your overall return when moving from one property to another (see graph below):

Is Buying Your Next Home in Cash Realistic?

Not every homeowner will purchase their next house outright — and that’s perfectly fine.

But here’s the bigger takeaway:

Your home equity may give you more options than you think.

You might be able to:

• Downsize and eliminate your mortgage entirely
• Relocate with stronger negotiating power
• Make a competitive cash offer
• Reduce your monthly housing expenses
• Increase your buying power in today’s housing market

If you’re a homeowner in Edmonds or the surrounding area, your property value may have grown significantly over the past several years.

How Much Home Equity Do You Have?

Before assuming you’ll need another traditional mortgage, it’s worth asking: How much equity is in your home right now? Your answer could completely change what your next move looks like.

If you’re curious about:

• Your current home value
• How much equity you’ve built
• Whether buying your next home in cash is possible
• What your real buying power looks like

Let’s run the numbers and map out your options. Give me a call, I am happy to help!