Real estate agents keep hearing the same objection:
“We’re waiting for rates to come down.”
But that conversation may be ending far too soon.
A growing number of buyers aren’t relying exclusively on traditional mortgage financing. Family money is helping fund all-cash purchases, larger down payments, closing costs and rate buydowns.
At the same time, millions of homeowners are sitting on enormous amounts of equity — and many own their homes outright.
For real estate agents, that creates an entirely different conversation.
The opportunity isn’t simply waiting for the market to improve.
It’s understanding where the money is coming from and knowing how to help clients use the options already available to them.
Why This Matters
One of the biggest mistakes an agent can make is assuming every buyer’s purchasing power begins and ends with a mortgage preapproval.
It doesn’t.
The episode highlights an agent Tim and Julie coach who closed four buyer transactions in one week. Three involved financial help from parents or grandparents.
That’s not an isolated idea.
The statistics discussed in the episode paint a much bigger picture.
Twenty-seven percent of existing-home purchases referenced in the episode were completed with all cash.
Repeat buyers were putting down a median of 23%.
Nearly 40% of owner-occupied homes had no mortgage.
And family assistance with down payments has become increasingly common.
That means agents need to stop thinking only about “the lender.”
Sometimes the lender is Mom.
Sometimes it’s Dad.
Sometimes it’s Grandma or Grandpa.
And sometimes there doesn’t need to be a traditional lender at all.
Key Takeaways
The wealth transfer happening between generations can create buyers, sellers and listings.
Family money can make a transaction possible even when interest rates initially appear to make the monthly payment unaffordable.
Paid-off homes and low-rate existing mortgages may create financing opportunities most agents never discuss.
And agents who understand creative financing concepts have more conversations available to them than agents who simply tell buyers to wait.
Main Points
1. Follow the Money
A massive amount of wealth is expected to move between generations.
That doesn’t mean the money simply sits in an investment account.
Some of it eventually reaches real estate.
Parents help children buy homes.
Grandparents help grandchildren.
Older homeowners sell, relocate or restructure their housing.
Children inherit money and buy larger homes.
One family’s housing decision can potentially create several separate real estate transactions.
That’s why experienced agents need to think beyond the immediate listing appointment.
Ask what is changing within the family.
Ask who else may be moving.
Ask how the current home is working for them now.
The first transaction may only be the beginning.
2. The Mortgage Company Isn’t Always the Lender
When a buyer tells you they’re waiting for rates to decline, don’t automatically end the conversation.
Ask another question.
Family money can enter a transaction in several ways.
The first is an all-cash purchase.
If the buyer can purchase without financing, the mortgage rate becomes irrelevant.
The second is a larger down payment.
More money down means a smaller mortgage and potentially a substantially lower monthly payment.
The third is using gift funds toward allowable closing costs or points to reduce the interest rate.
The lender should always confirm the rules surrounding gift funds, documentation and the specific loan program.
But the agent’s responsibility is to know enough to keep the conversation alive.
3. Ask About Family Help
Agents can become uncomfortable asking about money.
That discomfort can cost the client options.
A simple conversation might sound like:
“Waiting on rates makes sense. There are other ways to get the payment where you want it, though. A lot of buyers have had family help with the down payment or buying down the rate. Is that something your family has ever talked about?”
You’re not telling someone how to finance the property.
You’re uncovering another possibility and bringing the mortgage professional into the conversation.
That’s what a professional agent does.
4. Learn About Assumable Mortgages
Some homeowners are sitting on mortgage rates far below current financing options.
Depending on the loan and buyer qualifications, certain mortgages may be assumable.
That can dramatically change how buyers view a property.
Instead of obtaining an entirely new mortgage at current rates, a qualified buyer may potentially assume the seller’s existing loan balance and rate while handling the seller’s remaining equity separately.
Not every mortgage qualifies.
Not every buyer qualifies.
But agents who don’t understand the possibility won’t even know when to ask.
5. Paid-Off Homes Can Create Opportunities
Nearly 40% of owner-occupied homes cited in the episode had no mortgage.
Think about what that means.
Some sellers aren’t under pressure to immediately extract every dollar of equity from the property.
That opens the door to conversations around seller financing or other structures developed with qualified legal, tax and lending professionals.
Instead of simply asking:
“When do you want to list?”
A stronger agent asks:
“What are you planning to do with the proceeds?”
That question can completely change the conversation.
6. Seller Financing Can Create Transactions
A seller who owns the property outright may potentially decide to finance the buyer rather than receive the entire purchase price immediately.
Instead of a traditional mortgage company receiving the interest, the seller becomes the lender.
This requires proper documentation and professional legal guidance.
But conceptually, it demonstrates the bigger lesson from this episode:
Transactions don’t have to happen only one way.
Agents who understand more possibilities can solve more problems.
7. Higher Rates Can Actually Help Certain Buyers
One buyer discussed in the episode looked at today’s market differently.
Instead of seeing higher rates only as a negative, the buyer recognized that fewer competing buyers could mean:
More inventory.
More negotiating power.
Less likelihood of a bidding war.
Potentially better terms.
That’s a completely different mindset from:
“I’ll buy when rates fall.”
Savvy agents help buyers understand the entire market rather than obsessing over one number.
8. Stop Waiting for the Market
This is the central lesson.
Stop waiting for rates to rescue your business.
Stop waiting for prices to change.
Stop waiting for January.
Stop assuming buyers don’t have money.
Stop deciding a transaction is impossible before you’ve asked enough questions.
Some agents see a difficult market.
Other agents see a market requiring better skills.
That’s where training matters.
The more conversations you know how to have, the more opportunities you can uncover.
Bottom Line
The money is moving.
Family wealth is helping buyers purchase homes.
Longtime homeowners are sitting on enormous equity.
Some sellers have no mortgage.
Some owners are holding incredibly low-rate loans.
And buyers who understand the current environment are using reduced competition to negotiate.
The agents who understand all of those pieces won’t need to sit around waiting for the perfect market.
They’ll know how to create opportunities in the market they already have.
Learn the financing conversations.
Build relationships with lenders, attorneys, CPAs and other professionals.
Call your past clients.
Call the buyers who went on hold.
Ask better questions.
Because the Bank of Mom and Dad is open — and the agents paying attention will know what to do with it.
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⚠️ Opinions are my own and not the views of eXp Realty.
