In today’s high-interest-rate housing market, the appeal of a cash purchase has never been stronger. With mortgage rates hovering around 7%, it’s no surprise that more buyers are asking: is cash really king in real estate?
The short answer? Yes—if your financial situation can support it.
According to the National Association of Realtors’ 2024 report, 26% of homebuyers paid in full with cash last year, marking an all-time high. That’s still a minority, but it signals a trend—especially among buyers who want to skip hefty interest payments and close quickly.
So why is cash such a powerful play?
For one, you own the home outright from day one. That means no monthly mortgage payments, no interest, and 100% equity. This can boost your long-term wealth, particularly if the home appreciates in value. “If I could invest my money and get a guaranteed 7% tax-free return,” says financial planner Jay Zigmont, “I’d do that all day.” That’s essentially what paying cash for a home gets you—by avoiding interest.
Cash offers also stand out in competitive markets. Sellers love them because they reduce the risk of financing falling through, often making the sale smoother and faster. “It’s typically considered an easier transaction,” says real estate agent Lindsey Harn, making cash buyers more appealing—even if they don’t offer the highest price.
And speaking of speed, skipping the mortgage process can dramatically shorten your timeline. No waiting on loan approvals means you can close on your schedule.
But it’s not all upside. Cash buyers still face closing costs, and skipping steps like appraisals or inspections can lead to costly mistakes. Brett Johnson, a real estate investor, warns: “The biggest mistake cash buyers make is assuming they don’t need due diligence.”
And of course, there’s the risk of becoming “house rich, cash poor.” Buying a home outright shouldn’t drain your emergency fund. Future expenses—college tuition, home repairs, or even just furniture—still require liquid funds.
So, is cash king in real estate? Yes—if used wisely. It offers speed, leverage, and long-term savings. But it’s not a one-size-fits-all solution. Consider your full financial picture, and when in doubt, consult a trusted financial advisor.
Ready to buy or sell? Connect with the trusted experts at The Lindsey Harn Group—your local real estate partner every step of the way.