part exchange house with developers

rover25

Just came across it and am interested to know what happens re part excahanging your house for a new one from developers. Anyone know what's the criteria, what happens etc..
Thanks

Home_Swap_Advice

The developer will arrange 2/3 valuations on your property from local estate agents. They will then use the average valuation as a fair price for your property.

Developers will often require a certain differential in the prices. For example, a lot of developers will specify that there must be al least a 30% difference in the price of your current home and the one you are buying.

Part Exchanging is an excellent and very quick way of getting sold and moved in to your next home, providing that the delevoper does everything that they are supposed to.

A good place to go for any advice when it comes to part exchanging or home swapping is partexmyhome.

almillar

I'd like to hear more about this - which developers are doing this or where did you hear about it?

rover25

I doubt you could do it if in negative equity. Wishful hoping.

manalive_2

Call me cynical but this sounds like a bit of a scam to me.

Basic economics - if you cannot sell your house it is probably priced to highly. This applies to private sellers as well as developers.

Sounds like a sneaky ploy on the part of developers to get you to agree to buy a house at above market price. Sure they may give you more than market value for your own house but its all proportionate.

Lets say they value both properties at 10% above market rate - eg. you're selling them a 100k house for 110 but you're buying a 200k house for 220k so its costing you 110k to move. Had the houses been priced correctly in the first place it would have only cost you 100k.

Just my opinion but I'd be wary of these types of schemes. If properties weren't over priced there would be no need for schemes like this.

almillar

rover25 (or anyone) - where did you come across it? Partexmyhome seems to be set up for mainland UK and homeswapni seems to be homeowner to homeowner swaps.
Manalive is absolutely right of course, these schemes could be a dodgy, but a developer may be quite happy to give you market value for your home, and get even a 'decent' negotiated price for his, if it means he's left with a smaller home to sell in an established area, which should be easier and may catch 1st time buyers who won't be in a chain.
As with all deals you need to look at the numbers, but I find it very interesting...

Home_Swap_Advice

The scheme is far from a scam. It is just another way of selling homes. Its the same principle as part exchanging your car. The builders homes are not priced any differently just because they are available for part exchange. They are priced just as they would be if they were being sold the traditional way.

The benefits for the builder are that they are able to acquire a property lower down the chain and they will have made money from the difference that it cost to build the house and the price that they achieve from selling it. Yes they would make more money from simply selling it but it is better to make some money than no money at all.

The benefits for you are that you find a guaranteed buyer, you are likely to achieve a good price for your own home and there are only two people involved in the chain which (usually) means less hassle and a quicker completion.

avenida

Yes does anyone know which builders in northern ireland would do this?

leftieM

manalive wrote: »

Call me cynical but this sounds like a bit of a scam to me.

Basic economics - if you cannot sell your house it is probably priced to highly. This applies to private sellers as well as developers.

Sounds like a sneaky ploy on the part of developers to get you to agree to buy a house at above market price. Sure they may give you more than market value for your own house but its all proportionate.

Lets say they value both properties at 10% above market rate - eg. you're selling them a 100k house for 110 but you're buying a 200k house for 220k so its costing you 110k to move. Had the houses been priced correctly in the first place it would have only cost you 100k.

Just my opinion but I'd be wary of these types of schemes. If properties weren't over priced there would be no need for schemes like this.

You are so right manalive. No developer is going to do you a favour. They just want to save their own skins, and if they need to sacrifice a few naive buyers on the alter of Mammon to do so, they will.

manalive_2

Home_Swap_Advice wrote: »

The scheme is far from a scam. It is just another way of selling homes. Its the same principle as part exchanging your car. The builders homes are not priced any differently just because they are available for part exchange. They are priced just as they would be if they were being sold the traditional way.

I've never had a good deal when doing a part exchange for a car. Car dealers tend to offer a less than competitive price for the 'hassle' of taking your old car and offer less discount on the new car than they would if it was a straight sale. Is this scheme just the same only on a significantly larger scale ?