Part Exchanging a house
Discussion
Not sure if the correct section but here we go.
Going to look at a new housing development tomorrow and they do part exchange, we have been trying to sell our house without much luck to the point where the estate agents dont have a clue why we have not sold.
What i wanted to ask is if anybody else on here had an experience of part exchanging their current property for a new build?
Pros?
Cons?
Cheers
D
Going to look at a new housing development tomorrow and they do part exchange, we have been trying to sell our house without much luck to the point where the estate agents dont have a clue why we have not sold.
What i wanted to ask is if anybody else on here had an experience of part exchanging their current property for a new build?
Pros?
Cons?
Cheers
D
I worked for a lawfirm that handled some PX sales so I can give you some info from my experience.
Firstly, housebuilders will offer a vast number of incentives, free carpets, upgrading fire-places etc. etc. If you get a PX you'll probably be paying full price for the house and not getting many of the extra incentives. They do usually give you a fairly good price for the house you have already but mainly because they are holding onto their margin on what you are buying (hope that makes sense!).
You'll usually find that they will only offer PX on the plots that they are unable to shift rather than the whole development, sometimes you'll strike lucky where they've had a sale fall through on a plot when the house is pretty well completed so they'll be looking to offload it quick and might offer a PX on it. But mainly it's on the plots that for whatever reason (price, location etc.) they think they won't shift.
It's not a bad deal and if you're stuck with a house you can't shift it is certainly worth going and finding out what they are prepared to offer you.
I'm not sure what housebuilders are thinking at the moment? Do they perceive the market as high or not? When they think the market is slowing or slow they will offload stock so you might get a good deal if that is the case.
Good luck!
Firstly, housebuilders will offer a vast number of incentives, free carpets, upgrading fire-places etc. etc. If you get a PX you'll probably be paying full price for the house and not getting many of the extra incentives. They do usually give you a fairly good price for the house you have already but mainly because they are holding onto their margin on what you are buying (hope that makes sense!).
You'll usually find that they will only offer PX on the plots that they are unable to shift rather than the whole development, sometimes you'll strike lucky where they've had a sale fall through on a plot when the house is pretty well completed so they'll be looking to offload it quick and might offer a PX on it. But mainly it's on the plots that for whatever reason (price, location etc.) they think they won't shift.
It's not a bad deal and if you're stuck with a house you can't shift it is certainly worth going and finding out what they are prepared to offer you.
I'm not sure what housebuilders are thinking at the moment? Do they perceive the market as high or not? When they think the market is slowing or slow they will offload stock so you might get a good deal if that is the case.
Good luck!
It's crucial that you ask them the basis on which they are going to value your house. If they say that it will be valued to sell within six weeks then what they are talking about is "forced sale" valuation and this will be distinctly less than "open market" valuation.
Forced sale presupposes that sale is more important than price. Open market is based on willing buyer and willing seller; both interested, neither under any compulsion.
The difference could be as much as 20%
In the current market there has to be a reason for a house not to sell. Usually it is price but decor, finish or clutter all have a part to play. If you are genuinely having problems selling I would suggest changing agents rather than taking a PX deal. It's a lot like buying a car - you generally get a better deal going with cash in hand rather than trading in.
Of course there are some modern developers whose houses you could not pay me to live in so I hope it's not one of those you are going to see.
Forced sale presupposes that sale is more important than price. Open market is based on willing buyer and willing seller; both interested, neither under any compulsion.
The difference could be as much as 20%
In the current market there has to be a reason for a house not to sell. Usually it is price but decor, finish or clutter all have a part to play. If you are genuinely having problems selling I would suggest changing agents rather than taking a PX deal. It's a lot like buying a car - you generally get a better deal going with cash in hand rather than trading in.
Of course there are some modern developers whose houses you could not pay me to live in so I hope it's not one of those you are going to see.
Obviously it depends how desperate the developer is to unload their new house, but I would not get your hopes up too high, it's a bit like accepting a car dealers PX offer for a car, usually it is £££s less than you would expect to realise in a private sale,
but sometimes it is worth it to avoid the hassle of showing endless timewasters , or in the cars case, tyrekickers round.......
Have you had any/many viewers for your house????
but sometimes it is worth it to avoid the hassle of showing endless timewasters , or in the cars case, tyrekickers round....... Have you had any/many viewers for your house????
Right well i went to see them today and you are able to choose any plot so that was a plus. The way the PX worked was you could only do it if your house was valued at less than 70% of the value of the new property, ok not a problem, the valuation would be done by three independant estate agents and the house builders take an average and can offer between 92-95% of that price. You then do not have to pay the £4,000 estate agent fees i would currently be looking at.
There is no hassle involved and i cant sell my current house for what ever reason, been on the market since Jan 2006 and now with third estate agent, had a maximum on 10 viewing in this time. Dropped the price £15k from orginal price, i know what you mean buy clutter and sh!t when viewing but i can guarantee our house looks like a show home and is immaculate, neutral colour, cream carpet, private road, south facing garden, even the latest estate agent does not know why??
D
There is no hassle involved and i cant sell my current house for what ever reason, been on the market since Jan 2006 and now with third estate agent, had a maximum on 10 viewing in this time. Dropped the price £15k from orginal price, i know what you mean buy clutter and sh!t when viewing but i can guarantee our house looks like a show home and is immaculate, neutral colour, cream carpet, private road, south facing garden, even the latest estate agent does not know why??
D
Piglet said:
That sounds good Damien - which housebuilder is it?
It was actually Barrett and they are building houses with garages
trust me this is not normal at the moment, the amount of 4 bedroom family house that do not have a garage and have back gardens the size of a postage stamp. The actual houses were very nice too, one we liked allot was one they have orignially sold but has fallen through, as a result has the upgraded kitchen, which was better and carpet throughout. Plus the prices of the properties has fallen since the 28th Sept so me is thinking possible good idea.
We sort of Part Exchanged our old house back in January, we wanted to buy a house from a couple who wanted to buy a new house, however the builder did not want their house in PX, so they offered to buy our house so we could buy this house (if that makes sense!!!)
It all went smoothly we got offered say 1 - 2k less than what we wanted but we got the house we really wanted and it all went through quickly.
Edited for spelling as usual
It all went smoothly we got offered say 1 - 2k less than what we wanted but we got the house we really wanted and it all went through quickly.
Edited for spelling as usual
Edited by spdpug98 on Monday 2nd October 09:42
PX on houses can work very well indeed.
If you got £5k less than what you woudl otherwise get, but saved £4k on estate agents's costs and had no hassle re chains, people dropping out, completion dates it would be a good deal.
Sign up and when they tell you the new house is completed, move. Simple.
If you got £5k less than what you woudl otherwise get, but saved £4k on estate agents's costs and had no hassle re chains, people dropping out, completion dates it would be a good deal.
Sign up and when they tell you the new house is completed, move. Simple.
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