In today’s shifting real estate climate, knowing how to make the right offer can make all the difference. With rising inventory, increased price cuts, and steady mortgage rates, buyers and sellers are navigating a new normal. One of the most crucial factors in getting a deal done today? Whether the offer is cash or financed.
This article breaks down recent market trends, compares the strengths and drawbacks of cash versus mortgage offers, and offers data-backed guidance on how to succeed in today’s market.
The Market is Cooling: What That Means
As of June 2025, the housing market is seeing a significant rise in inventory and a surge in price reductions. According to Realtor.com, active listings rose 28.9% year-over-year, with over 1 million homes currently on the market.
In addition, more than 20% of homes listed in June experienced price cuts—a level not seen in nearly a decade. Sellers are starting to lose leverage, and buyers are regaining power.
But there’s a catch. Many sellers, rather than cutting prices further, are pulling their homes off the market. MarketWatch reports a 47% year-over-year increase in delistings, a sign that some homeowners would rather wait than sell at a perceived loss.
The Rise of the Cash Offer
Cash offers are dominating headlines for good reason. In some markets, they account for over half of transactions. In Manhattan, for example, 69% of home sales were all-cash in Q2 2025 (NY Post).
Why sellers prefer cash offers:
- No risk of financing falling through
- Quicker closings (often under 30 days)
- Fewer contingencies
- No appraisal requirement in many cases
In a slowing market, these benefits stand out more than ever. Sellers are more willing to accept slightly lower cash offers in exchange for certainty and speed.
Who benefits most from cash?
- Investors who want to move quickly
- Downsizers with equity
- High-net-worth buyers
Why American Home Buyer Is the Perfect Cash Buyer
At American Home Buyer, we specialize in providing fast, fair, and reliable all-cash offers to homeowners in any situation. Here’s what sets us apart in today’s slowing market:
- Speed You Can Count On: We close in as little as 7 days or on your timeline—no delays, no financing red tape.
- Guaranteed Offers: What we offer is what you get. We don’t play games with pricing or renegotiate at the last minute.
- As-Is Purchasing: We buy houses in any condition. No repairs, cleaning, or prep work needed.
- People-First Process: Our team listens first, acts with integrity, and helps you choose the best path forward—even if it’s not with us.
In a market where many buyers are falling short or backing out, we follow through. That’s why so many homeowners choose us when they need a guaranteed, no-hassle cash sale.
The Mortgage Buyer Isn’t Out of the Game
Not everyone has the ability to pay cash. Mortgage buyers still make up a significant share of the market and can still win bidding wars—but only with a smart approach.
How to compete as a mortgage buyer:
- Get Pre-Approved: A full underwriting approval (not just pre-qualification) gives sellers confidence.
- Show Proof of Funds: Demonstrate you can cover the down payment and closing costs.
- Include an Appraisal Gap Clause: Agree to cover the difference if the home appraises low.
- Waive Low-Impact Contingencies: If safe, waiving contingencies like minor repairs can make your offer cleaner.
Some buyers are even using hybrid strategies—such as putting down 40% or more—to mimic the strength of a cash offer while still financing a portion of the purchase.
Inventory, Rates, and Negotiating Power
Current conditions are tipping the scale back in favor of buyers, especially those ready to act decisively.
- Inventory: Up nearly 29% nationally year-over-year
- Price cuts: Common in over 20% of listings, and more than 30% in some cities
- Mortgage rates: Hovering between 6.6% and 6.8% for 30-year fixed loans
These trends suggest sellers are more open to negotiation than at any time since before the pandemic. And while rates remain high, competition is lower, giving serious buyers a unique window of opportunity.
Writing a Winning Offer in 2025
Whether you’re using cash or a mortgage, here’s how to tailor your offer:
If you’re a cash buyer:
- Include proof of funds
- Offer a fast closing timeline (under 30 days)
- Waive contingencies where safe
- Consider a personal letter to build rapport with the seller
If you’re financing:
- Submit a full pre-approval letter with your offer
- Add a rate buy-down incentive for the seller
- Be flexible on closing dates
- Include escalation clauses in competitive neighborhoods
Regional Trends: Where Cash Has the Edge
In hot markets like Austin, Phoenix, and parts of Florida, inventory and price cuts are above average. These areas tend to favor cash buyers more heavily, especially where properties may not appraise well due to price volatility.
In steadier Midwest markets and suburban areas, strong mortgage offers are still competitive, especially when accompanied by good terms and local lender support.
Final Thoughts: Leverage Your Strength
Cash offers will almost always be seen as more favorable to sellers. But mortgage buyers who understand the dynamics of a cooling market can still come out ahead.
Here’s the bottom line:
- Sellers want certainty more than ever in 2025
- Cash equals leverage, especially when paired with quick closing timelines
- Financed offers can win if structured smartly and paired with local insight
Regardless of how you buy, understand what’s happening in your market, work with a knowledgeable team, and structure your offer to match the seller’s goals.
For sellers looking for a guaranteed, no-hassle transaction, American Home Buyer offers fair, all-cash offers and can close on your timeline. If you’re curious about what we can offer for your home, reach out today.