Buying a part exchanged property.

[dontticklethetoad]

Hold onto your hats folks, this is a bit long winded, but what to give as much info as possible.

We had found an ideal property, needed work etc etc.
Despite having numerous conversations and viewings we were only told by the estate agents that it had been part exchanged for a new build when we went to make an offer. We had to make the offer to a 3rd party who then contacted the new build company who then informed us they wanted to complete within a month!

In the end they rejected both our offers of 5% and 2.5% under, it sold and we thought nothing more of it.

It has just come up on rightmove again, I can only assume that the buyers couldn't complete in that short time frame or the survey threw up something bad.

My question is, is it possible to even complete within a month (we are chain free)? Is this usual for part exchanged properties? And has anyone had any experience of newbuild companies accepting offers under the asking price?

I did warn you it was long winded!

Can't really help you on completion time but as far as I understand it they tend to price part exchange properties fairly low anyway to get a quick sale. That may be why they wouldn't accept a lower offer.

We went to look at a newbuild property before we bought our current home. We didn't undertake the process but they have selected solicitors / mortgage brokers who they want you to use to get things through within that month. We were first time buyers though so lot in a chain. Not sure if you already own that it will be possible unless your house is already sold.

They price low when they buy them but they price high when they sell them. I had a similar experience and they played hardball. I paid almost full asking price for a really knackered house. Plus it turned out to have a structural problem but the information we had from the vendor was scant to non-existent

Yes it is possible if both parties are pro active and the survey comes back ok.
We bought a part exchange property 6 years ago.
We got it for 7% under asking price because we were chain free and had a deposit and AIP in place.
We completed in 6 weeks.
Viewed at end of October.
Got keys beginning of December.
A word of warning...
The previous owners were obv told by the building company to make the house look more saleable so they painted every wall in magnolia.
Ok you say?
Well it would have been if they hadn't just used any old paint lying around.
They mixed Matt and silk emulsion together and god only knows what they used on the ceiling!
It was a rather lacklustre job too...not much time or effort. In fact when we moved in we realised they hadn't painted behind the wardrobes!
We've been here 6 years and have just (2 weeks ago) finished re decorating the entire house.
It does look lovely now :)
Another word of warning;
Within 2 weeks of moving in we discovered:
The conservatory roof leaked - £4.5k to replace
The boiler didnt work - £1.5k to replace (it was January and snowing)
The kitchen was falling apart - £5k to replace
Obv the above ^ prob won't happen to you but just be aware some owners move to a new build because they don't want to deal with issues in their current house!!
Good luck

Thanks for the replies.

It is best described as shabby. It needs a new kitchen and redecorating.

We are chain free, have a 25% deposit and OIP. We don't know whether to try again. If we pay full asking price, we will have nothing left for any work that needs undertaking. But it would be the perfect house with a bit of work.

Just concerned that survey may show something up.
If the previous potential buyers survey came back with a problem, would the vendor have to tell us about it?

I would approach the agent and ask

I wouldn't offer full asking price. If they've had one sale fall through they'll be less likely to refuse you this time. I'd offer exactly what you offered in your last offer so they think this is the absolute top of your budget. We bought a house that had been part-exchanged 20 years ago. We knew the estate agent and actually offered £2,000 less than the building company had bought it for but we were first-time buyers and had our mortgage in place. They accepted and we exchanged in a month.

We bought a part-exchanged house from a builder. As a word of warning, in our case the new build house was delayed by weeks and weeks so we couldn't complete, or even exchange with a fixed date, as the new build buying family were stuck in the house we were buying.

I also think you'd struggle to complete in a month because our searches have taken 3 weeks to come back both times!

PNGirl this is what I struggling to get my head around.
I'm assuming it is back on the market because the previous buyer couldn't complete in that time frame.

As far as the new build is concerned, they are all finished. I'm not sure why the old owners are still occupying the house.