If you’re buying a home with a mortgage in today’s market, you’ve probably noticed something: competition is fierce, and cash buyers often seem to have the upper hand. But don’t let that discourage you. With the right strategy and support, you can be just as competitive—even when cash is king.

Here’s what you need to know about the state of the market, why cash offers appeal to sellers, and how to stand out when using a mortgage loan to buy your next home.

Today’s Housing Market: By the Numbers

Housing inventory remains tight. As of today, there are approximately 1.1 million homes on the market nationwide. To put this into perspective, inventory hovered closer to 1.5 million homes in late 2019. During the COVID-19 pandemic, record-low interest rates fueled a buying frenzy, and inventory dipped below 1 million homes in 2021.

While today’s numbers are slightly higher than the pandemic lows, the market is far from balanced. Limited inventory and rising mortgage rates have created an environment where sellers hold significant leverage, and cash buyers often rise to the top of the pile.

Cash vs. Mortgage Purchases: What the Stats Say

Recent data shows that 30% of homes sold in the U.S. today are purchased in cash, up from around 20% four years ago. This uptick reflects several trends:

Investors and institutional buyers: Companies and investors snapping up properties in cash for long-term rental income or resale. I have a whole slew of opinions on this trend, but we’ll save that for another blog.
Equity-rich buyers: Homeowners cashing out in one market and downsizing or relocating to a more affordable area.
Competitive edge: Individual buyers aiming to win bidding wars by eliminating financing contingencies.

Meanwhile, the majority of buyers—around 70%—still rely on mortgage loans to purchase their homes. This includes first-time buyers, families upgrading to larger homes, and many other everyday homeowners.

Why Cash Offers Appeal to Sellers

When sellers evaluate offers, they’re often looking for certainty and simplicity. Here’s why cash often wins:

Faster closing times: Cash deals can close in as little as two weeks, compared to the current industry average for mortgage closings, which sits at 43 days.

Author Tangent - This is honestly ridiculous to me. My team can get purchase loans closed in an average of 15 days, and so can many other lenders. From my perspective, it seems like mortgage brokers tend to have the upper hand here over banks and credit unions. Moral of the tangent - ask your lender what their average time to close is. It will vary depending on circumstance and loan product, but if they tell you 30+ days, maybe go look for a second option.
Fewer contingencies: Cash buyers don’t need appraisals or loan approvals, reducing the chances of the deal falling through.
Confidence in the offer: Sellers may feel more secure accepting a cash offer, especially in markets where homes appraise below list price.

How to Be a Competitive Buyer with a Mortgage

While you can’t magically turn your financing into cash, there are several ways to make your mortgage-backed offer just as appealing:

Get Pre-Approved, Not Just Prequalified
A mortgage preapproval shows sellers that your lender has already verified your income, credit, and assets. It’s a strong signal that your financing is solid and ready to go.
Work with a Stellar Team
- Your Realtor: They’ll help craft a competitive offer and negotiate on your behalf. Look for someone who knows the local market inside and out.
- Your Mortgage Advisor: Communication is king in today’s fast-paced market. A responsive and proactive loan officer can keep the process moving smoothly and reassure the seller’s agent that financing won’t be an issue.
  Pro Tip - Don’t just go with “Joe Shmoe” from your bank when finding a lender. These guys (and gals) get leads fed to them from the bank, so relationships and referrals aren’t their main line of business. Find someone that has to source all of their own leads in order to eat. That’s how you know they’ll take good care of you - relationships and trust are their money makers.
Consider a Larger Earnest Money Deposit
Offering more upfront shows sellers you’re serious and willing to put some skin in the game.
Waive or Limit Contingencies
While it’s risky to waive inspections or appraisals entirely, you can reduce contingencies by shortening timelines or offering to cover appraisal gaps out of pocket.
Write a Personal Letter (When Appropriate)
In some cases, a heartfelt letter to the seller can tip the scales. Share why the home is perfect for you and how you’ll care for it in the years to come.

Personal Experience - This is something my wife and I did, at the suggestion of our mortgage lender, when we bought our first house. We were $10,000 under the highest (CASH) offer the seller had, but they chose us and our mortgage financing instead. Afterwards, they told us they went with us because they had so many memories in that house, and they wanted to know that whoever lived there after them would cherish it as much as they did.

The Right Team Makes All the Difference

In a competitive market, the team behind you can make or break your homebuying experience. A great realtor knows how to position your offer to stand out, and a great mortgage advisor ensures the financing process is seamless and stress-free.

When these two professionals communicate effectively—with you and each other—they create confidence for everyone involved, including the seller. And confidence is exactly what sellers are looking for.

But don’t just take my word for it. Let’s hear a top producing real estate agent’s take on it - someone that knows first hand what the difference is between a good team and a bad team:

Real Estate Agent Spotlight

Avo Awanesian - An EXP Realty Arizona Top 10 Producer

Avo, why is it so important for a homebuyer to have a good agent/lender team to back them up, especially in such a cash-heavy market?
“A strong agent/lender team is essential to ensuring you as a buyer have a positive & smooth experience but more importantly to ensure you are protected along the entire transaction. I've seen buyers lose their earnest deposit, not close on time, or not close at all and lose their dream home due to their lender and agent not being on the same page. Trust me, you don't want to experience this!
Having a great team working on your behalf not only protects you, they can also offer creative solutions when needed and strengthen your offer to help you win your dream home in a competitive offer situation. Besides the offer price, there are many other 'levers' that we can pull to make your offer stand out from others that may be higher and it all starts with your agent & lender being solutions oriented.”
We've won multiple offer scenarios for our clients by having excellent communication with the other parties and strengthening terms of our offer such as a shorter inspection period, using sellers preferred title, quicker closing date, rush ordering the appraisal and more.
Buying a home is one of the most exciting and important decisions you’ll ever make and having the right team - a knowledgeable lender and an experienced realtor - can make all the difference. Together, we help simplify the process, provide clarity, and ensure you’re set up for success in today’s competitive market! “

The Bottom Line

Buying a home with a mortgage in a cash-heavy market isn’t impossible—it just requires strategy, preparation, and the right support (and maybe a little luck). With a strong team, a well-crafted offer, and the right mindset, you can turn the dream of homeownership into reality.

Ready to start your journey? I’d be honored to serve you as your trusted mortgage advisor as you set off on this adventure, and I can help connect you with an agent like Avo to round out our dream team.

Use the button below to reach out today and start taking steps toward accomplishing your homeownership goals.

Lets chat about your homeownership goals

Buying a Home with a Mortgage? Here’s How to be Competitive in a Cash-Driven Market