market value?

[Mumofjz]

Thinking of part ex'ing and they are offering 100% market value - can anyone tell me if that means market value of what the same house next door is for sale or the market value of same house is showing on the property value websites, as they seem to vary cosiderably

It was probably be calculated by the part ex co's tame valued and is likely to be low.

It won't be either. They will commission their own valuation and it may well differ to that of a local EA. Maybe get 3 EAs to visit first so you have an idea. However a house is only worth what someone will pay for it and Part Ex is a convenient way of moving without having to market it, but you will effectively pay a premium by the developer typically making a lower offer.

do you think that if we have a shortfall due to low valuation and the £ depost required, they would up the valuation to enable us to buy a much dearer house?

Doubt it tbh. They have to factor in the cost and ease of selling on your property and financing it in the meantime. Unless a builder is desperate to get occupancy (ie at the start of a new development or phase) I think your negotiating power is weak. A valuation will take into account what similar houses have actaully sold for (Land Registry), the comparative condition and features of yours and market trends, expect it on lower rather than higher side.

and normally they will only consider Part Ex if the house you want to buy is on sale for significantly more than your present property's valuation

The technical definition of market value is the amount a willing purchaser will pay for a property from a willing seller. If you accept a part ex price then they will say that is the market value.

Sparkle9 - who did you go with? What did the assisted move comprise of and how come they offered so much (stamp duty, deposit etc)?

Around here the trick is slightly different. The developer will offer a genuine or even generous part exchange value on the house. However, the new builds they're trying to sell are deliberately overpriced.

If you come to them without a house to sell, as well as throwing in various things (carpets, etc) they will offer to give you X% towards your deposit - the amount they've overpriced the houses they're selling by. Part exchangers get no/limited benefits.

So the developer get to artificially inflate the prices of the houses they're trying to sell and skew the value of the area. Meanwhile people doing part exchange think they're getting a good deal as the offer on their house seems good, though really they're overpaying on their new home and losing the money that way.

Ok get that. What area are you in? Looks like we're not moving anytime soon :(