Despite signs of some softening in the housing market, competition for residential properties (particularly in desirable markets) remains fierce. Bidding wars continue to be commonplace; and as a result, all-cash offers have become more commonplace.

In fact, cash sales accounted for more than a third (38%) of all home sales in 2024.1 And that percentage rises as the value of the properties and the desirability of the neighborhood rises. In some premium markets such as Manhattan, the number of all-cash deals continued to rise — to a record 58%. The prevalence of cash deals was even higher for sales over $3 million where cash transactions accounted for 90% of sales.2
Why this surge in all-cash deals? While for the most part driven by limited supply and high demand, for sellers the numerous advantages are clear:3
Certainty and speed – cash buyers aren’t subject to delays or uncertainties associated with the mortgage (or other financing) approval process.
Fewer (or zero) contingencies – with cash deals, sellers typically see fewer purchase contract contingencies that could slow or derail the deal.
Fewer appraisal and inspection issues – with no lender hurdles to navigate, there’s often no need for an appraisal, and inspections can often be streamlined.
Lower closing costs – the lack of a lender also often translates into overall lower closing costs.
In many cases, buyers who plan to go the more traditional financing route are today finding themselves at a considerable disadvantage.
Purchase today with all cash; finance down the road
There are a variety of ways you could potentially come up with an all-cash offer. These include:
- Using cash on hand
- Liquidating another property or properties
- Selling portfolio investments
Any of these strategies can serve as an end solution or as a bridge — allowing you to take your time in lining up advantageous post-sale financing after the transaction is completed. But what if you wish to level the playing field and effectively compete with cash buyers, yet don’t want to force yourself into a liquidity crunch or incur any unnecessary adverse tax consequences?
If qualified, you might instead want to consider obtaining a securities-based loan which would allow you to potentially make an all-cash offer without needing to sell any of your investments. In effect, these are loans which are secured by eligible assets in your investment portfolio — allowing you to quickly obtain cash funds to meet closing deadlines — and then at a later point in time, apply for a residential mortgage loan and if qualified use those proceeds to pay off or refinance the securities-based loan.

Additionally, you could use some of the securities-based loan funds to renovate, repair and/or furnish the property — making you an even more attractive potential purchaser by avoiding demands that the seller make certain improvements prior to closing.
Bank of America Private Bank Clients may apply for a Private Client Line. It’s a way to maintain your current investment strategy, while using your investments as collateral to access the funds you need to pay for a home purchase — with competitive interest rates, no minimum balances nor up-front loan or account maintenance fees. The application process is simple with minimal financial reporting.

Understand the risks associated with your Private Client Line account
Securities-based financing involves special risks. You should review your PCL Loan Agreement and related documents and disclosures carefully and consult with your own independent tax and legal advisors. Some risks to consider include the following:
- A decline in the value of your collateral assets may require you to provide additional funds or securities to avoid a collateral maintenance call. You can lose more funds than are held in the collateral account. The PCL account is a full-recourse loan, and you will be liable for any deficiency.
- The Bank can force the sale or other liquidation of any securities or other investment property in the collateral account and, unless otherwise required by law, can do so without first contacting you.
- You are not entitled to choose which securities in the collateral account are liquidated or sold.
- The Bank can change its collateral maintenance requirement at any time without notice to you.
- You are not entitled to an extension of time to satisfy the Bank’s collateral maintenance requirement.
- There may be adverse tax or other consequences to you if securities are sold or otherwise liquidated by the Bank.
- The PCL account is an uncommitted facility, although loans to individuals and trusts may be committed in an amount not to exceed $100,000. The Bank may
- demand full or partial repayment at any time, and any commitment may be immediately terminated.
- For fixed-rate advances and term loans, principal payments made in advance of the end of the applicable fixed-rate period, whether voluntarily or involuntarily
- (due to demand or liquidation by the Bank) may be subject to a substantial breakage fee as determined by the Bank.
- Some restrictions on the use of PCL account proceeds may apply under the terms of your loan documents and applicable laws and regulations.
1 “Home Selling Profits Slide Again in 2024 Across U.S. Despite Continued Price Gains,” Attom Data Solutions, January 2025.
2 Elliman Report 1Q2025, Miller Samuel, April 2025.
3 “The Pros and Cons of a Cash Offer on Your House," Homes.com, January 8, 2025.
The Private Client Line is offered by Bank of America Private Bank and not by or through Merrill Lynch, Pierce, Fenner & Smith Incorporated.
The Private Client Line is uncommitted, and a complete description of the loan terms can be found within your loan agreement.
Neither Bank of America Private Bank nor any of its affiliates or advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Credit facilities are provided by Bank of America, N.A., Member FDIC, its subsidiaries or other bank subsidiaries of Bank of America Corporation, each an Equal Opportunity Lender *add house symbol*. All loans and collateral are subject to credit approval and may require the filing of financing statements or other lien notices in public records. Asset-based and securities-based financing involves special risks and is not for everyone. When considering an asset-based and/or securitiesbased loan, consideration should be given to individual requirements, asset portfolio composition, and risk tolerance, as well as capital gains, portfolio performance expectations and investment time horizon. For any loan with securities collateral, the securities or other assets in any collateral account may be sold to meet a collateral call as provided in the definitive loan documents and the client is not entitled to choose which securities or other assets will be sold. A complete description of the loan terms will be found in the individual credit facility documentation and agreements. Clients should consult with their own independent tax and legal advisors. These products may not be appropriate for all clients. Bank of America Private Bank offers a wide variety of credit products to meet client needs. Bank of America, N.A. and U.S. Trust Company of Delaware (collectively the “Bank”) do not serve in a fiduciary capacity with respect to all products or services. Fiduciary standards or fiduciary duties do not apply, for example, when the Bank is offering or providing credit strategies, banking, custody or brokerage products/services or referrals to other affiliates of the Bank.
Banking, mortgage and home equity products are provided by Bank of America, N.A., and affiliated banks, Members FDIC, and wholly owned subsidiaries of Bank of America Corporation. Equal Housing Lender. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Credit card programs are issued and administered by Bank of America, N.A.