Did you lose much part-exchanging your house on a new build?

[Goose72]

Just looking for ideas as I’m coming to the end of a lengthy divorce and the family home has been on the market for 3 months now, with no interest apart from 3 viewings. I am stressed out with the whole house selling thing and thinking of looking into a part exchange and just giving stbx half of his share in the mortgage free family home to enable me to have a stress free move into a smaller, new property.

We have already reduced the asking price on the family home and I can’t go any further as Im
getting a lot less from the divorce than stbx is. I’m 52, so conscious that time isn’t on my side (to pay back a mortgage, even though my lump sum from my pension will be around £100k at 60). I will be working to 67 (hopefully, not full time) but can get some pension payments from 60.

For anyone who part exchanged their house for a new build, how much did you lose? I think the estate agent will push to reduce the price further so part-ex is looking more appealing now (especially as I won’t have to go through the stress of viewings and a chain).

We were offered something similar from a house builder but they weren't interested when our house didn't sell within a few weeks, this was 7 year ago so maybe different now!

I’m thinking of taking it off the market and doing some research around part-ex.

We bought a house from a developer who had bought it in a part exchange deal (previous owner upsized to a bigger & more expensive new build house).

We saw what the developer paid for the house which was about 10% below market value.

In general you need to be upsizing, we found our home could be no more than 75% of the new build property. Apart from Gleeson because they use a 3rd party cash buyer - they generally offer upto 85% of the asking price., and I think Barrats was 80%. You could see if they offer 'move assist', they will try and sell via an estate agent and will pay your fees, but they will set a time frame, ie 6 weeks, to sell in.

Neighbours house was on for 9 months at £340k during 2023. They part ex it for a massive new build with a big national developer and got £320k for it, when I think it was nearer £300k true value compared to other houses on the estate (we were actively looking in same period so knew every house that came on the market inside out!)

It sold for £280k last year which was a bit of a bargain for the buyers so I think sometimes part ex isn't as bad as you might imagine and in a slow market plus your circumstances I would definitely consider it, especially if a new build is something you are considering anyway?

But if you are compromising on the property you would be buying by being forced into a new build when other properties may be more suitable for price or location then I may be more cautious. It would be a double hit to your current situation and your future and you may resent your choice later once you have recovered from your divorce.

I don't think PX will be possible in your situation. The exchanged property has to be worth a certain percentage less than the newbuild you are buying.

I think if it was 10% lower than the market value it would be too much for me to lose.

I can understand that, we thought the previous owners of our house were a bit mad tbh selling it so low to the developer but they were in a big hurry as wanted to secure a different house so 🤷🏼‍♀️

I don’t know if that percentage is normal btw that was just our experience

Obviously cannot speak about all builders that offer part exchange but the ones around us will only do it for properties that cost more than the one you are part exing

Local ones only do it on 4 beds. I only want a 3 bed.