Part-Exchange Experience?

stingy_rach

Hi guys

This is my first post, although have been loitering around these pages skimming off valuable info for a while!!!

I am in the process of part exchanging my house for a new build after getting a great deal last weekend. The developer wants to complete on the 19th (end of year finances and all that). This is going really quickly, in the last three days we have seen a mortgage advisor, instructed solicitors (of developers choice) and paid our deposit. The surveyor has already been round and the estate agents that will be selling our house after the exchange has already put ours market!!!

It all seems to good to be true.

Has anyone else done this in record breaking time and what should I look out for?

Thanks in advance:rudolf:

Davesnave

Has anyone else done this in record breaking time and what should I look out for?

Er, no. I'm one of the slowest people to sell a house on this forum.

You should look out for a bumpy year ahead, when the value of your new house plummets further downwards and your secure job looks much less secure.

Apart from that, nothing to worry about really.

This is a wind-up , isn't it?

Rebchappers

Dave, why the negative response? you know nothing about the posters situation... just because you may not feel it is the right time to buy/sell... for many people this is an excellent time, with falling house prices and low interest rates.

Yes, the new house may go down in value, but it may be a home and not an investment. They may not be looking to make any money and will happily stay there for many years to come, in which time the property market may have recovered.

Davesnave

Rebchappers wrote: »

Dave, why the negative response? you know nothing about the posters situation... just because you may not feel it is the right time to buy/sell... for many people this is an excellent time, with falling house prices and low interest rates.

Yes, the new house may go down in value, but it may be a home and not an investment. They may not be looking to make any money and will happily stay there for many years to come, in which time the property market may have recovered.

I don't think this is a genuine post. There is nothing here we can reply to; no details, no specifics, and it's a very first post, which also suggests a 'username of convenience.'

I could be wrong. If I am, OP can come back with a specific question.

And I don't disagree with what you say, or I wouldn't be in the process of selling my house. Every person has a unique situation, which will tailor their response to the wider market. However, here we're not being given any insight into that uniqueness. I suspect that's because the situation described is ficticious.

I repeat, if OP hasn't just come here to wind us up, or to say what a clever person she's been, she can repost with more details. I certainly wouldn't say 'never' to anything, including p/ex with a developer.

Rebchappers

Aah i see Dave... sorry for being hasty then!!

The good person in me ( naive, some may say) didnt think about that, and just saw a new person, making their first post looking for a response

I hope i havent caused any offence :-)

Davesnave

Not at all; it was probably me that was hasty. I could be totally wrong.

However, when I saw 'have been loitering around these pages skimming off valuable info for a while!!!' the thought immediately occured: 'Then why didn't you post here and ask specifically about the deal before agreeing to all this?'

She is not too late to re-examine the situation, but without specifics, nobody here can help.

7062

I dont think that it is impossible.

We signed on a part exchange last Sunday with the new builders requesting a completion date of 19th of Dec. I refused to move before christmas and the quite happily allowed us to extened to 19th January with exactly the same deal. The builders obviosuly thought it was enough time.

Although our current property has dropped we still got £11K more than we paid in 2006 and £90k discount on new property. Fully carpeted/turfed/fenced and all appliances included.

7062

Incisor, I agree that the builders to markup houses. But in this case we are paying £90k less than our neighbours and the house was still valued £40k above the price we are paying. The house has been ready since Apr08 and is the last of phase 1. I know for a fact that phase 2 houses had been reduced on release but due to sales picking up over the past 2 weeks they have now increased the prices back to what they where 6 months ago.

In our case we a porting our existing mtg and paying the difference with cash. The mtg will be 46% ltv so even if the housing market drops further it will still be a while before we hit negative equity. With the way the banks are at the moment i dont know that i woul feel happy leaving my savings there.

stingy_rach

This is not a wind up. I am just asking as I have heard many horror stories about part exchanging with developers especially Barratts who we have gone with.

I am not too worried about the price decreases over the next year as I am in this for the long run and we would have lost out on our old house if we didn't move.

What I was asking is whether anyone else has part exchanged and whether they encountered any problems with the process and if there are any pitfalls I should watch out for. If this doesn't seem like a worthwhile question then apologies

space_rider

I`ve not done a part exchange but have bought what was a part exchange with another builder. I looked at this house and completed in 2 weeks and 1 day. I didn`t use their solicitor as I don`t like being told who I have to use but the builders solicitor did move pretty quickly. I had already sold my house and was living in rented property.

Ilian2008

My brother in law did a part exchange and it went pretty quickly. There are good deals out there at the mo. Best of luck