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Join our Property forum for renovation, DIY, and house selling advice.

Join our Property forum for renovation, DIY, and house selling advice.

Property/DIY

Part exchange for a new build - good idea or not?

18 replies

boardergirl · 19/10/2011 20:27

Am thinking of doing a part exchange, 'full market value' apparently, for a house with a developer and was wondering what people think.

My main motivation is to avoid the hassle of open market selling. Flats are taking at least 6 months to sell in our area and I really want to move - we are very overcrowded.

I also quite like the house. Not my dream house but we can't afford much so this seems a good option. Has anyone got any experience of this kind of thing?

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JoJoMummy321 · 19/10/2011 20:36

I think it's a good idea especially the way the housing market is just now. I don't have experience of it but the one negative mentioned when looking into it was that you can't negotiate on the price of the new house but I still think it's a good thing, especially if they are giving you full market value for yours which you may not get on the open market.

Which developer is it?

We would love to do this as we are on the market just now and fancy a new build in the area we are moving to but we are moving due to relocation and want to spend only a little more than what our house is worth. I think part exchange want you to spend 30% more than what your house is worth which makes it too expensive for us. We only want to spend 20% more max.

Good luck with everything.

Hulababy · 19/10/2011 20:41

Have you contacted them yet? Just that some developers don't accept flats or apartments in their part exchanges.

hocuspontas · 19/10/2011 20:44

I want to do this. Make sure there is no 'small print' like your property needs to be less than 20 years old - we came unstuck with that stipulation a couple of years ago.

verysmellyeli · 19/10/2011 20:45

We did this two years ago. We got slightly less than full market value (maybe 90%?) but needed to move quickly and our house just wasn't selling. We upgraded quite considerably (3 bed to 5 bed, more toilets than we know what to do with) but sacrificed character and garden for convenience and cream walls. But we are all happy, and although we thought initially it might not be our forever house, it's so convenient that we may end up never moving! (especially now we've had DC3.....)

boardergirl · 19/10/2011 20:50

It is with barrats. Pleased to hear I'm not totally mad for considering it.

The new builds are in a town a few miles away that's not as nice as our lovely town but ok. Would also mean school move but close enough for all of us to see old friends.

Good point about flats we are going there this weekend so will find out then.

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boardergirl · 19/10/2011 20:56

I am also keen on the convenience. Haven't got enough time for a project or lots of DIY with 3 small dc!

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RachelHRD · 19/10/2011 22:32

Bear in mind they usually only do this if you are upsizing considerably - i.e. the part x is only 70% of the value of the new build.

FessaEst · 19/10/2011 22:36

My PIL did this as they were having major problems selling, and it worked quite well for them.

boardergirl · 20/10/2011 08:08

We would be up sizing quite considerably from 2 bed flat to 3/4 bed house.

Let's hope we like the houses and they part ex flats. I really want some space!

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RachelHRD · 20/10/2011 11:57

I'm sure in the current market they will part exchange flats. You may not get the best plot as they tend to hold back certain plots for part-ex purposes but you should get a pretty good deal.
We bought off plan and moved in over the summer and love it. It's so nice not to have to worry about DIY or unforseen costs of boiler break down etc and to know that your house is energy efficient - especially with gas/elec prices. You do get snagging issues - but with our developer (Linden) they have been dealt with quickly and settlement is generally dealt with a year after build completion. We are quite lucky in that we have a good sized garden.
Good luck!!

Becaroooo · 20/10/2011 13:45

My sis and BIL did this and they were happy
HTH

WillowFae · 20/10/2011 14:35

We did it 10 years ago. Our buyer pulled out a week before we were due to move but it wasn't our problem as we had already sold it on to the builders - they were the ones left without a buyer.

We are moving again now and ONLY looked at new builds because we wanted that hassle-free experience. As it happens we have sold it privately as it was for more than the builders were offering us, but with their scheme the sale was done through them and if our buyer pulls out at all then the builder will step in. Okay, for less than we are getting at the moment, but it is the reassurance that we like.

cowboylover · 21/10/2011 17:24

Worth a check as well that I am 99% sure that there comission targets end on a Friday as a friend just got an extra 3k off for buying on a Friday rather than the Saturday she planned on going in so the negotiator could hit her target.

Good luck

couldiBEwearinganymoreclothes · 23/10/2011 08:16

The other advantage is that by selling your flat through the developer, you won't be left high and dry like you could be if you sold privately and the buyer pulled out at the last minute.

boardergirl · 25/10/2011 08:05

Well we looked and really liked house despite tiny garden. They do part ex flats so think we'll ask for the valuations.

Good tip about Fridays. Does anyone else have any negotiating tips? Is their offer price fixed, also can we negotiate on asking price if we part ex?

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JoJoMummy321 · 25/10/2011 08:25

I think you probably won't be able to negotiate as much as you would be able to if you were not doing part Exchange but you should still be able to do a little negotiation. Perhaps more on what is included rather than price so maybe carpets or turf for the garden etc. Key thing to remember is that it is a business deal...they are not doing you a favour...they will gain out of the deal too. Good luck it sounds very exciting for you.

bruffin · 25/10/2011 08:26

We part exchanged a flat for a 3 bed house about 20 years ago. They actually gave us about 20k more than the value of the flat. However it did hit a snag when it became clear that they actually wanted a buyer in place. It worked out ok in the end.

boardergirl · 25/10/2011 08:44

Thanks, house finished and not sold so already carpeted etc. Will update if anything happens!

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