Cash buyers paying premiums in steep markets, RealtyTrac reports

SVP Daren Blomquist says markets where cash buyers pay more, including Manhattan and San Francisco, could be at risk of overheating
  • Cash buyers in some markets are paying premium prices for properties.
  • This is a sign that the markets are overheated.

Forgoing a mortgage and putting all cash on a property might increase bargaining power – right? Not necessarily, according to RealtyTrac’s Q1 2016 U.S. Cash & Institutional Investor Housing Market Report, which shows cash buyers in San Francisco, San Jose Manhattan, Los Angeles and Naples paying premiums instead of discounts.