How much of a discount could I get paying for a house cash?

My husband and I are have land and we want a house built on it, however we want to pay cash for the house so we don't have to do financing...how much of a discount could we get that way?

How much of a discount could I get paying for a house cash?
You pay the contractors as you go. The discount will be in the form of no interest payments. But the contractors expect to be paid right away no matter what.
Reply:I would say you can get a 5% to 10% discount, since the builder knows you have the cash. You will need a letter from your banker stating that you have the assets available.


However, you do not want to pay the full amount up front. A lot of builders are going out of business and may not be around next month. You might want to check on THEIR bank and assets too.


When its time to do the job, pay a portion up front, a portion with the job half done and the portion on completion. That can be for the whole job if there is a general contractor, or for each separate job from several contractors.


Skipping the financing is a bonus for the contractor, so you will have a bit of an advantage.
Reply:From the builder? NONE!!!! He doesn't care if the money comes from you or from the bank. In fact, as a builder, I hate cash deals. We require that the full amount be put into escrow with an lawyer and we are paid in draws when a milestone is completed. The lawyer pays us directly - the same way that the bank would pay us. This way the owner (you) can't hold money back for reason that do relate to the work completed.





For example. we had a client that wouldn't pay us the draw because we wouldn't go back and change something (FOR FREE) that was already in place and had been already agreed to by the owners. (It was 3 windows in the basement that the owner didn't want, then changed their mind when the foundation was installed. It would have been cheaper to install them with the foundation pour; now we would have to cut them into place, which cost about 2000 more . . .)





EDIT: people like oahurealestate have not idea. If you were selling a car for $10,000 and the buyer could either get a loan for $10,000 or pay cash - would you discount the car (and lose) 10% ($1,000) just because they are paying cash or would you want them to get the loan. Either way you are getting paid and would turn the car over to the buyer until you got the money. I'm 100% sure you would want the buyer to get the bank loan and pay you fullprice of $10k.
Reply:Probably none whatsoever. The builder doesn't care if his check comes from you or the finance company, he still gets the same amount of money. You will however save some loan closing costs and other fees by paying cash, but if doing so you REALLY should use a good attorney to help you through this process.
Reply:Call the bank you desire to do business with and simply ask them. I'm pretty sure they'll be happy to help you. The reason I say this is because you really should have easy access to your liquid assets and there are many creative ways of dealing with building contractors especially if you're a good standin customer with the bank they use. Doesn't hurt to try.





And yes, all you little readers, I'm more than sure I'll see at least 2 thumbs down from you sweet idiots! This is a viable answer!