Part exchange - -what will it be?

natman

Hi there!

The Mrs and I have been thinking of moving for two years or so, anyhow, we decided for the last two years to save up best we could and look at moving in 2009........................... Thanks to the credit crunch, the thought of moving etc seems a complete nightmare so we looked the other day at new developments to see if that might be an option.

We also had our house valued a week ago for a realistic price in current conditions - the price we were given was £ 150k tops and 145k as a realistic selling price from 3 estate agents........

We found a new home on a 'MORRIS' homes development, all looks well, we discussed part ex.
They highlighted they would take the 3 valuations from the estate agents, and offer what the valuations would be........ummm

In addition the new house is priced at £219,000.

A man from Morris homes came round last night to double check the property was sellable - tuesday 20th Jan and he highlighted that he would need to go back to the office, get the paperwork from the estate agent, mull it over and potentially make an offer by the end of the week(being friday 23rd Jan)

My questions are these -
1. Do you think Morris homes will offer 145k??? anyone had any dealings with these regading part x?
2. if they do offer 145k am I still in a postion to barter with them regarding their selling price of 219k??? They indicated as it is a part ex, no real financial offers can be made appart from the part exchange itself.....
3. what would people do in my situation - i am hapy with 145k for my house but 219k is a bit over(not a lot) over my budget.

Any advice would be fantastic................

lincroft1710

Your final statement says it all - "is a bit over my budget". Unless the deal comes below your budget - walk away.

If Morris Homes offer £145K, I would wager that £219K is too much for their house. I am assuming you need to borrow extra £79K, plus factor in Stamp Duty, mortgage arrangement fee and solicitor's fees.

So you need to work out how much extra you can afford to borrow and negotiate on that basis. Do not exceed your budget. Tell Morris Homes if they offer £145K for yours, you need to be able to buy theirs for £x (1st figure a bit lower than you can afford, so room for negotiation). And I repeat, do not exceed your budget.

NoDebtForMe_2

Hi

I am in the process of buying a newbuild and doing a part ex on my home. I had a valuation from an EA for my own knowledge prior to going through the part ex procedure. I was given the figure £115,000 tops with a view of selling at £105,000/£107,000. The new house was priced at £219,995 (sales rep told us it had been reduced by £40,000 to reflect the current climate which was confirmed via the internet by previous prices sold at for same house in same street).
I was offered by the builders (after 2 valuations from other high street EA and a visit from the part ex rep from the builders) £115,000 plus £5,000 in incentives to spend inside the house. I was asked by the rep from builders how much I wanted for the house prior to this and I told him £115,000-£120,000 so basically he gave us what we wanted.
We told them we wanted £115,000 for ours, £5,000 in incentives and their house at £170,000. We negotiated for the rest of the afternoon which resulted in a substantial amount off their property and our house for £115,000 with just the turf for the garden as an incentive as we preferred a bigger discount in the house than incentives. They are also paying stamp duty. This should be possible to include too as they wont be payingit on your house.So in answer to your question, yes you can get a reduction in the house price on a part ex. However, do your homework and find out what price the same house sold for previously and how long ago it is since they last sold a house as then you will know if you are in a better position. Could help having a mortgage promise too but no necessarily. Good Luck!

natman

Thanks for the replies guys, very helpful indeed!

any other info from anyone?

WestHamDaz

Im currently awaiting an offer from Bovis regarding my part ex, and its bloody killing me not knowing. Been nearly 2 weeks now

zone

If you are confident you can get £145k for your house i would sell it on the open market. Then negotiate the Morris house down to about £195k or less. Of course, theres no guarantee of a sale so the partex would be the quickest route. But could also mean paying more for the move.

natman

Hi,

Ok the deal is on the table, To be honest I am pretty happy with it!!!!

Our house valued at 140k - The builder offered 140k - :j

Their House was on at 229,000 2 months ago, and has dropped to 219,500k to generate more interest...........It did get more interest and a buyer was found but they could not get a mortgage.........
Whilst this happened they had orderd £6,000 worth of flooring ( which is a lot as it is a three storey), expensive tiles & built in appliances.

So I have got the builder to accept £199,000 for the house, to which they have just agreed - ( after a day of give and take) :T

I have now just asked them to look if they can do anything with the stamp duty............ we shall see.
I am seeing the house tommorow and to potentially look at buying it........

The good thing is -
I bought my current house for 50k 10 years ago, and i only owe 25k mortgage.................
the 140k the offer - is in theory 140k - 25k current mortgage, giving me a 115k deposit on a 199k house - so i need a mortgage for 84k..........

Hopefully A good deal for all,,........................
Any thoughts!!!!

coolmax

I'm jealous!!! ;-)

Congrats!!!

Flooring and appliances sound fab but I'd ask for more ...

I've been advised, by someone who bought new build during the 'boom', to ask for turf for the garden, curtains even!

Don't forget they are desperate for your business in this climate (that all essential cash flow) but they can get those sort of things for nothing.

So, they can only say no, and you haven't lost out by asking; but so much to gain!

Good luck .... Coolmax xxx

NoDebtForMe_2

You did well!
I am in the same boat as you in the respect of equity and such like so I am pretty darn pleased with us. I have waited 13 years for my "dream" home and it is becoming a reality. It is a nice feeling and everyone is bending over backwards to accomodate us and make things flow smoothly. Moving house stressful? nahh! lol I am sure I will have some testing moments in the process but so far the usual stressful things have not been the case as everyone has been so helpful. I have just looked over my mortgage offer which I have been in ownership for over a week (mental note: do read the small print on official docs) and it states I have the offer for a year which I actually thought was a 6 month one. Well done again :beer: now see what other goodies you can get out of them. Does the price include all the extras the previous buyers ordered? After all you didnt have the choice so they should be negotiated on.

natman

HI

Thanks for the comments -
Just a little extra info -
I managed to get the garden turfed and all the extras included in the price that is now on the table, that is why i think it is a good deal.

I am just asking them to pay stamp duty now which will be £1999, if i can get this it will be fab, and a real bonus, if not I am still happy financially!!
I managed to get a mortgage offer in principal before discussing prices etc , this was a fantastic bargaining tool indeed


We are seeing the house again today (saturday 24th Jan) to just make sure it all feels right. I have my head in the right place now its just my heart.

eyreman

Well done!! it just proves you can still get the deals - especially with builders - they will fall over themselves to try and get you to buy from them.

Good luck!