Cash Buyers Pay Less For Homes

Cash buyers
As a cash buyer, there is a great chance that you will be able to purchase a home for less money.

The dream of home ownership can feel increasingly out of reach for many these days. Rising interest rates and fierce competition are just a few hurdles facing potential buyers. But according to a new study from the University of California San Diego Rady School of Management, there’s another factor tipping the scales: cash.

The study reveals that sellers are willing to accept a lower price in exchange for the guaranteed security of a cash offer. This convenience comes at a cost, with cash buyers on average paying 10% less than those relying on a mortgage.

Why a discount for cash buyers?

Sellers value the convenience of a cash deal. Traditional mortgage financing can be a lengthy and uncertain process. Appraisals, loan approvals, and underwriting can all delay a closing, and there’s always the risk of the deal falling through at the last minute.

Cash buyers eliminate this uncertainty. They can close quickly, often within a few weeks, and there’s no chance of financing falling apart. This allows sellers to move on to their next chapter more efficiently, especially if they themselves need to buy a new home.


Ultimately, the decision of whether to accept a cash offer depends on your individual circumstances. If speed and certainty are top priorities, a cash offer might be the way to go. But if maximizing your profit is more important, you may be better off waiting for a financed offer that comes closer to your asking price. Of course, much of this will also depend on your local housing market dynamics. In some markets, we are still seeing multiple offer situations on new listings. In other markets, we have seen a tremendous slowdown in home buyer activity.

As always, it is best to hire a local and knowledgeable real estate agent to help guide you through the home buying or selling process. Are you looking to buy or sell a home in South Florida? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search app for your smartphone or tablet!

By natasha moore

REALTOR® with Live South Florida Realty, Inc.