New build part exchange - experiences?

[2under2in2024]

We currently have our house up for sale, and have had quite a few first viewings but no second viewings. All the feedback has been that the house is lovely, but parking is an issue, which is unfortunately true. We have dropped the price ready for the new year spike in interest so hopefully this will help, but I am nervous. The house was previously on the market for almost a year before we bought it.

We've recently found out we're expecting a second child, and I'd really like to be moved before baby as our current property isn't ideal for various reasons.

We like the idea of buying a new build next, and I've seen that many of the building companies offer part exchange which may solve our problems, though I appreciate the price you get for the property would be less.

I wondered if anyone has done this, and what your experience was? Which builders did you do it with?What percentage of the asking price did you receive? Would you recommend someone to do it?

We did this around 15 years ago in Scotland. Wanted a bigger house and there was a builder putting up new builds nearby, went to have a look at a particular house and realised it was too small and went in to look at the show house. Loved the show house and wanted to buy, the plot we were looking at was already built and was having finishing touches done to it. We said we wanted to part exchange, they asked what we wanted for it but we wouldn’t tell them.
We had a figure in our head and said if they got that figure or above we would do it. They offered us the figure we had in our head so we did it. We moved in approximately 2 months later having also negotiated add ons in the house too.

Builder sold the house for £15k less than they paid us for it about a month after we moved out.

Generally, I think that the builders will pay market rates. You are really being hit on the price of the new build instead - paying a premium for it being new. It will typically lose value as soon as you move in - just like a new car.

A couple of points to consider. Many estates are now including estate fees. The builder will palm you off with suggestions that this is just a low fee for grass-cutting etc. Don't be fooled. Those fees can get out of hand. Check out fleecehold stories.

Financially, the builder will need you to be buying a property something like 25% more than the value of the home you PE'd, e.g. you sell your home for 300K so you have to be buying a new build costing 400k or more (made up figures - see fine print for details).

Some new builds are built well but many are of shoddy construction and/or part of a soulless housing estate where everyone lives on postage sized plots, there may be little or no front garden and parking will be a hideous nightmare.