Paying for a home in cash is usually ripe with benefits. For most sellers, an all cash buyer is much more appealing than someone who needs to take out a mortgage and cash buyers typically get big discounts on the purchase price. But while that is generally the case, it isn’t the case everywhere.
As MarketWatch reports, in nine metro areas in the United States, cash buyers ended up paying more per square foot for homes than mortgage customers during the first quarter of 2016, according to data released by RealtyTrac. At the same time last year there were only five markets where cash buyers paid more.
The markets where cash buyers need to raise the stakes are all so competitive that paying in cash isn’t enough to give them the edge. The major reason this trend of cash buyers paying more is likely due to the fact that cash buyers tend to be more interested in expensive properties starting around $1 million and they end up bidding against each other.
The Honolulu area saw the largest premium paid by cash buyers at 6.6 percent more per square foot than traditional buyers. Seattle was next at 5.2 percent more and San Francisco was third at 4.8 percent more. As you may expect, California dominated the list with five of the nine areas located within the state.
For the entire list, click the link below.
