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New build incentive - Assured sale?

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Mickyduff
Mickyduff Posts: 3 Newbie
in House buying, renting & selling
As titled above, I'm interested in buying a new build property in Scotland and one of the incentives on offer is an assured sale on my current home.

I have nothing in writing yet other than that sentence, no small print or explanation of the grey area in between.

Does anyone here have any experience they can share on this?

My concern is the grey area, new property won't be ready until Xmas, mine is already on the market but sales are slow here.

Mine has been valued at a price we need to get to be able to buy the new plot. We'd be turning down any low offers if we got any, am I naive in thinking the builder would honour the full market value in an assured sale?

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  • sultanabran
    sultanabran Posts: 172 Forumite
    edited 18 June 2017 at 11:31PM
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    Mickyduff wrote: »
    As titled above, I'm interested in buying a new build property in Scotland and one of the incentives on offer is an assured sale on my current home.

    I have nothing in writing yet other than that sentence, no small print or explanation of the grey area in between.

    Does anyone here have any experience they can share on this?

    My concern is the grey area, new property won't be ready until Xmas, mine is already on the market but sales are slow here.

    Mine has been valued at a price we need to get to be able to buy the new plot. We'd be turning down any low offers if we got any, am I naive in thinking the builder would honour the full market value in an assured sale?

    I would be surprised if the builder paid full market value. The deal I opted for was the builder pays for my estate agency fees and gives me the opportunity to sell the house on the open market by a set date. If it's not sold by that date, they will buy it in part exchange.

    The way they arrived at a part exchange value was to base it on an 8-10 week sale price based upon the value of a surveyor and an estate agent.

    Thankfully my house sold on the open market, otherwise I'd be a few £k worse of if I had to go down the part-ex route.
  • G_M
    G_M Posts: 51,977 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
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    Of course not.

    I'll give you an Assured sale right now. PM me. I guarantee to get your property sold.

    Price any property low enough and it will sell fast.
  • Mickyduff
    Mickyduff Posts: 3 Newbie
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    Thanks sultanabran. The deal for us would be we are given the time to sell our property but the builder will buy it at market value on the date of exchange IF it hasn't sold.

    To me though there's so many variables in there, I feel uneasy signing anything. We can't afford a drop in our house value as the cost of change we are looking at is maxed out.
  • Mickyduff
    Mickyduff Posts: 3 Newbie
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    G_M if were expected to pay the builder 2015 prices for their new build then I'd expect them to honour their promise of a 2017 full market rate valuation price on ours.

    If they won't play fair then the deal is a no go.
  • sultanabran
    sultanabran Posts: 172 Forumite
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    Mickyduff wrote: »
    Thanks sultanabran. The deal for us would be we are given the time to sell our property but the builder will buy it at market value on the date of exchange IF it hasn't sold.

    To me though there's so many variables in there, I feel uneasy signing anything. We can't afford a drop in our house value as the cost of change we are looking at is maxed out.

    I guess you would need to get them to confirm in writing when you reserve that they would pay market value and how its decided what market value is.
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