Homebuyers get a steep discount with cash offers

Homebuyers who pay cash for a property can spend 10% less on average than those who take out a mortgage, new research from UC San Diego's Rady School of Management suggests. Why it matters: The discount gives cash buyers another advantage in a competitive and expensive real estate market, where they're already favored over mortgage borrowers. Between the lines: Sellers prefer cash, even when it means leaving money on the table, because the deals are quicker and less risky than a mortgage offer. • A mortgage deal requires lender approval...