Cash Buyers get a discount, here's how much......

[David Krulac]

Across the country, all cash buyers paid 23% less per square foot than other buyers.  In the first quarter of 2016 cash buyers paid on average $91 per square foot versus $118 for all buyers.

Some cities had big discounts for cash buyers and some cities had negative discounts.  The full report by RealtyTrac is here:

http://www.realtytrac.com/news/home-prices-and-sales/q1-2016-cash-buyer-institutional-investor-housing-report/

[Kevin Fox]

While I have no doubt that cash-buyers receive a discount to some degree (in fact- I witness it everyday and regularly represent clients who are beneficiaries of this) I think that the extent to which it's reflected by this study is a bit overstated due to a hidden variable:

A lot of cash purchases are made for value-add deals, or other cases where the property might face obstacles to financing. In these cases, it is not about the attractiveness of the cash offer that got them the lower price, but instead the property condition and more limited buyer pool.