How to Compete With Cash Offers When Buying a House

Home shoppers can face fierce competition in today's real estate market — particularly in popular areas where would-be buyers outnumber sellers. Cash buyers have an advantage because they don't have to wait for a mortgage lender's approval. Between July 2024 and June 2025, an all-time high of 26% of home sales were to cash buyers, according to the 2025 Profile of Home Buyers and Sellers published by the National Association of Realtors.

» MORE: Why and how to buy a house with cash

What are cash offers, and why do sellers prefer them?

When a buyer makes a cash offer on real estate, it means they don't need to use a mortgage, as most homebuyers do. They have enough in the bank to buy the property, or they'll have the money after selling their current home or assets such as stocks.

As a buyer, you may have experienced how demoralizing it feels to lose out to a competing bid. Sellers suffer similarly when they accept an offer, but the buyer withdraws because of mortgage qualification problems. This is one reason that sellers find cash offers attractive: There's no lender to say no.

Besides their stronger closing odds, cash purchases usually close faster because they don't have to go through mortgage underwriting, which takes weeks.

So strong is the preference for cash buyers that in 2025 sellers accepted a 9% discount on average for all-cash purchases compared with financed offers, according to property data provider Cotality. That’s up from just 4% in 2021.

Especially in a hot real estate market, cash talks, but not everyone can make an all-cash offer on a house. If you need to use a mortgage to buy a home, here are some strategies for competing against cash buyers.

Find out what sellers want

As you prepare an offer, you tend to focus on what the seller has (a house) and what you want (their house). But you'll gain a competitive edge by viewing the transaction from the seller's eyes: What does the seller want?

Sellers want a high price, sure, but they have other goals, too. You may be able to beat cash offers by identifying what else the sellers want — then giving it to them.

For instance, the seller may be motivated to sell due to a job change, marriage, divorce or death. Knowing ahead of time the problem you can solve can put you a step or two ahead of the competition. See if your buyer’s agent can contact the listing agent to ascertain what would especially benefit the seller and the best way you could help.

Here are common items on home sellers' wish lists:

• Hassle-free transaction with easy-to-work-with buyers

• Highest sales price

• Quick, on-time closing

• Minimal buyer contingencies

• Remaining in the home or a few days up to two months post-closing

• Avoiding the hassles and costs of post-sale repairs

Be the path of least resistance

The home-buying process can get intense, and you may be at the stage where you want to tear your hair out or you’re anxious to get the process over and done with. However, don’t be demanding of the seller — such as requiring a response to your offer within two hours. The seller may take that as a red flag that you're difficult to work with.

This advice may be hard to accept if a previous seller leveraged your offer to squeeze more from a competing buyer. Still, overly pressuring a seller is not an effective negotiating posture.

You should also make sure your offer is clear, concise and favorable. Additionally, working with a well-known mortgage lender can go a long way to inspire seller confidence.

» MORE: How to make an offer on a house