Part exchange experience

NameChangeCity123 · 2022-01-26T15:36:51+00:00

Hi Has anyone done a part exchange type agreement where a new build company will buy your property from you as part payment towards the new home? What have your experiences been? I'm worried they would just drive the price right down?

Thatsveryniceofyou · 26/01/2022 16:03

We did part exchange with Taylor Wimpey and had a very positive experience. They did give us slightly lower than mv (about 15k under) but they paid our estate agent fees which saved us 5k and included flooring and turfing in the house for us (we still had to pay to upgrade kitchens, bathrooms etc) but overall we didn't feel like we lost out. Plus the process was very smooth and quick. They sold our house the first day it was on the market for 20k more (and although Taylor Wimpey don't give you anything for this, other companies like David Wilson do so worth knowing)

LunaLoveFood · 26/01/2022 16:05

We had a great experience with part exchange. They paid market value for our house and from our first viewing of the property to us moving in was 6 weeks. It was so fast (possibly too fast as I was such a whirlwind!)

Original poster

NameChangeCity123 · 26/01/2022 17:27

@LunaLoveFood

We had a great experience with part exchange. They paid market value for our house and from our first viewing of the property to us moving in was 6 weeks. It was so fast (possibly too fast as I was such a whirlwind!)

Wow this is amazing. How does the process work- they list your home but you have to sell it before you can move in or is just a case of them agreeing to it and you can move regardless of whether it's sold on within a certain time?

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Original poster

NameChangeCity123 · 26/01/2022 17:28

@Thatsveryniceofyou

We did part exchange with Taylor Wimpey and had a very positive experience. They did give us slightly lower than mv (about 15k under) but they paid our estate agent fees which saved us 5k and included flooring and turfing in the house for us (we still had to pay to upgrade kitchens, bathrooms etc) but overall we didn't feel like we lost out. Plus the process was very smooth and quick. They sold our house the first day it was on the market for 20k more (and although Taylor Wimpey don't give you anything for this, other companies like David Wilson do so worth knowing)

Wow, I think once you add all that up it seems like you still got a good deal! Would you use that again? I thought it sounded too good to be true but maybe it's just a great deal

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TeaSoakedDisasterMagnet · 26/01/2022 17:36

Also a good experience here.

They paid about 2k under our asking price but it saved us estate agent fees and also they upgraded the kitchen and bathrooms for us which was about 4k worth of upgrades. It was quick and efficient and was only delayed due to the pandemic and shortage of building materials. There was no chain and we found it less stressful. We’d previously tried to buy and sell just before the pandemic and the chain collapsed so we decided to buy new build instead.

Original poster

NameChangeCity123 · 26/01/2022 17:40

@TeaSoakedDisasterMagnet

Also a good experience here.

They paid about 2k under our asking price but it saved us estate agent fees and also they upgraded the kitchen and bathrooms for us which was about 4k worth of upgrades. It was quick and efficient and was only delayed due to the pandemic and shortage of building materials. There was no chain and we found it less stressful. We’d previously tried to buy and sell just before the pandemic and the chain collapsed so we decided to buy new build instead.

Wow it's nice to have so many positive experiences, it's made me rethink the whole idea

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MadisonAvenue · 26/01/2022 17:47

11 years ago. We had an excellent experience with Miller Homes. They very slightly undervalued our old house by around £2000 but they turfed our new home and flooring was fitted throughout (4/5 bedroom, 2 reception rooms and over three floors). When the mortgage company messed up their calculations and wouldn’t accept the valuation due to the road being unfinished, we asked for £5,000 discount and they came back with an offer of £15,000 which made it an even better deal.

We completed 24 days after assigning a solicitor to act for us.

In the meantime our house had actually gone up for sale before we’d completed and they actually listed it at a lower price than they were paying us. It sold within 24 hours.

Original poster

NameChangeCity123 · 26/01/2022 18:04

@MadisonAvenue

11 years ago. We had an excellent experience with Miller Homes. They very slightly undervalued our old house by around £2000 but they turfed our new home and flooring was fitted throughout (4/5 bedroom, 2 reception rooms and over three floors). When the mortgage company messed up their calculations and wouldn’t accept the valuation due to the road being unfinished, we asked for £5,000 discount and they came back with an offer of £15,000 which made it an even better deal.

We completed 24 days after assigning a solicitor to act for us.

In the meantime our house had actually gone up for sale before we’d completed and they actually listed it at a lower price than they were paying us. It sold within 24 hours.

Did you find the whole process Straight forward? It sounds really good but I'd be worried about the legal side of things and it getting quite complicated

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Hoppinggreen · 26/01/2022 18:14

We did it with this house 20 years ago and Persimmon.
They offered what I asked. The man who came round to value spoke to us and offered it there and then.
It was all very easy and stress free. There were a few delays on the new house but it didn’t matter.
As long as you get a decent amount I recommend it

Original poster

NameChangeCity123 · 26/01/2022 18:17

@Hoppinggreen

We did it with this house 20 years ago and Persimmon. They offered what I asked. The man who came round to value spoke to us and offered it there and then. It was all very easy and stress free. There were a few delays on the new house but it didn’t matter. As long as you get a decent amount I recommend it

My goodness I was honestly expecting to come on and hear a chorus of 'don't do it!' But actually people seem really pleased!

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Thatsveryniceofyou · 26/01/2022 18:34

We would do it again in a heartbeat! Just before the buyers for our house had pulled out as they could no longer get the mortgage so it fitted in so well. Process took about 8 weeks in total. So smooth. As long as the figures work for you I don't see a downside and as my father in law said when we were working it out, he said as long as you have enough to get the house you want, who cares if you don't get market value etc.

Original poster

NameChangeCity123 · 26/01/2022 18:45

@Thatsveryniceofyou

We would do it again in a heartbeat! Just before the buyers for our house had pulled out as they could no longer get the mortgage so it fitted in so well. Process took about 8 weeks in total. So smooth. As long as the figures work for you I don't see a downside and as my father in law said when we were working it out, he said as long as you have enough to get the house you want, who cares if you don't get market value etc.

Wow. This has been a big eye opener. Seems To take so much stress and time away! Exactly what we need. There are so many new builds being put up in our area and we like the area but need more space so that sounds ideal

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MadisonAvenue · 26/01/2022 19:23

Did you find the whole process Straight forward? It sounds really good but I'd be worried about the legal side of things and it getting quite complicated

I wouldn’t hesitate to do it again. We initially thought it was too good to be true but it really was so straightforward and took the stress out of buying and selling in the conventional way with a chain involved, it was just a transaction between us and the house builder.

Original poster

NameChangeCity123 · 26/01/2022 20:52

Thanks for all your comments everyone, I'm going to look into it tomorrow

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LunaLoveFood · 26/01/2022 21:01

Ours was on the market, we had a few viewings but not offers. We then went to look at the new build but it was one of the last ones on he development and they were keen to sell it.

They took ownership of our house as a sort of deposit, we then took on a mortgage for the rest of the value of he new house.

The housing company then sold our old house (no idea how long it took for them to sell.)

LunaLoveFood · 26/01/2022 21:03

We definitely had the same "it's too good to be true" thoughts as MadisonAvenue had.

APurpleSquirrel · 27/01/2022 14:46

Thank you for asking this & the answers. We're considering it too, several new builds going up locally & we want to sell ours but the thought of all the stuff that goes along with selling is just terrifying & mind boggling in equal measures. Will definitely look into this as an option.

WMay1979 · 29/09/2023 15:47

The scheme is not worth it the valuation came in under £20000 as opposed to what you can get on the open market, regardless of upgrades etc as they would not pay stamp duty and the reservation deposit is £1000 which no one cares to mention very expensive compared to other developers and the quality is not luxurious by any means.

Tessasanderson · 29/09/2023 16:25

As long as it stacks up for you it is a brilliant way to do it. Considering all the posts on this site about nightmare purchasers etc i would definately explore the options and see.

We part exchanged a house we owned (No mortgage) about 2 years ago. By part exchanging we got some benefits that others may or may not have considered but we did. They kinda dont apply now either but at the time very important to us.

We had it written into the contract that the stamp duty charge (It was exempt when we did the deal) would be paid by them if they delayed build.
We had it in writing that no price adjustments could apply during the build of the new property. In the time it took to build ours the price of same house further up the street went up £25k
We rejected their initial bid for our house and got them to increase it £10k. They sold it the first day for a further £5k profit. We reckon if we had gone the full hog we might have sold it for £5k more again but we would have had solicitors costs so in all we reckon we lost £5 part exchanging. The total don't give a shit feeling it gave during the build was worth £5k alone. The family who bought our house started making enquiries as to when they would get the house......sorry, we didnt sell it to you, we sold it to the developer, speak to them.

We had the most relaxed moving experience ever. We signed for our new house, saw the prices going up and up while ours didnt and we didnt really care when it was built even though there were massive delays at the time. The ££££ in stamp duty they had to pay also made me chuckle. She thought i was mad when i said she could keep her £500 gesture but i wanted the stamp duty guarenteed.

It helps to have a partner with 25 years conveyancing experience.

DevonMaman · 30/09/2023 07:48

We part exchanged with Linden Homes in 2018. While we did get a lesser price than market value (£20k approx), we were able to negotiate on other things like the landscaping of the garden, kitchen fixtures, bathroom fixtures etc. The ‘loss’ was well worth it for the peace of mind as we had already had one sale fall through at that point!

I would recommend it as long as the price offered is fair.

DrySherry · 30/09/2023 09:41

The house you are buying from them is between 10 and 20 % higher than its value will be after 1 to 2 years so they do have, in theory, plenty of margin to give you a fair price on your house. I would say now is probably not the worst time to look at these deals because they don't have accurate info on current sold prices - due to land registry data lags. If you wait 6 to 8 months they will definitely be offering a lot less. They have a habit though of trying desperately not to drop thier own prices in a falling market and come up with all sorts of incentives to keep the actual recorded price up. Some will remember a time during the last significant reset that one in particular was offering a free brand new car with a house ! So desperate were they not to drop the top line number..