Part-Exchange: Been given an offer today. Need to let them know tomorrow!

piano_man_2

Hi,

I am thinking about buying a new house from Bellway through part-exchange. They have given me an offer on my home and I need to let them know what I think by tomorrow. I would appreciate your thoughts and any tips that you have.

My house which has 3 bedrooms has been on the market for a year now. Initially it was up for £149.950 but recently has been reduced to £132,950.

The new property has been on the market for a similar length of time. At first it was £265,000 and now it is £240,000.

They had my house valued this week and offered me £100,000 for it because it is not in a good area. However, they will let me have theirs for £200,000 (excluding any incentives i.e carpets, turf, stamp duty etc.)

I love the new house which has 4 bedrooms, a study, a large plot, a double garage and it is in a great area.

Do you this a good deal? I would be grateful if you could let me know your thoughts, tips or anything that I should be aware of in part-exchange. It's a huge step so I want to make sure that I'm not making any mistakes ...

Thanks

Robert_Sterling_3

Major builders have experience of pricing their property and negotiating.

If I was such a builder I would ask a very high starting price. Then I would offer discounts for signing up quickly.
Hurry hurry hurry would be my cry. I would offer what appear to be good part exchanges.

Perhaps the house is really worth £200,000 rather than £240,000.

Don't rush in to anything.

piano_man_2

Thank you. I agree, I do feel under pressure because:

a) I am working all weekend and the rep agreed to meet me at a service station near where I work!

b)The rep also says there will be no part exchange available from Bellway after tomorrow ...

They do seem a bit desperate (!)

poppysarah

They want you to rush an answer?
Don't.

Home_Swap_Advice

Congratualtions if you decided to take up their offer.

However, if you are still unsure, I would advise that you do not take the first offer which is laid on the table. They have already shown a willingness to negotiate and it has been at their discretion. Developers are desperate to shift property at the moment and this is a position which is worth taking advantage of.

With regards to the valuation on your property, the developers will usually be pretty fair, however, this does seem a bit low if your property has been valued correctly by an agent.

What you should bear in mind is that if you don't take advantage of this PX, you are stuck at the veery beginning again. You have to find yourself a new home and another buyer. The price that they are offering you for yours may be worth the fact that not only have you found your ideal home, they are also taking care of the finding a buyer side of things which is becoming increasingly difficult in todays market.

If you want more advice, I would recommend partexmyhome.com. They are very helpful.

QTPie

He is offering you the new house at 83% of the asking price, but is only offering you 75% of the asking price of your home. BUT it is a falling market, so the value of your house could further fall before the developer manages to off-load it. BUT there is a premium on new houses to start with... so whether you are still paying that...

Lots of IFs and BUTs... only person who can decide is you. How much do you want the new house? Can you comfortably afford the "cost to change"? Would you still be happy with the new house even if it's value fell another 25% over the next two years? How long would you intend to stay there? Those are the important questions

piano_man wrote: »

b)The rep also says there will be no part exchange available from Bellway after tomorrow ...

I would be VERY surprised if this was the truth: it SOUNDS like a tactic to close the deal quickly. To be honest, these scare tactics virtually always put me off - I hate being rushed.

However, there is nothing certain in life.

Good luck, whatever you decide
QT

Jonbvn

IMHO it would be madness to trade-up now. Property prices are only likely to go one way in the present economic climate. This means that in the future, the price difference between your current house and a new bigger/better one will be smaller.

geordiescouse

How exciting.....am currently going through the whole part ex thing now with Miller Homes. Am terrible at waiting and it's taking me all my effort not to just ring them up and demand an offer! But I have been told not to accept their first offer and try to negotiate better. I now what figs I am hoping to get and am not so much looking at prices but cost to change as this is what your mortgage is going up by. New houses do have a premium attached to them, but you are paying for new kitchens, bathrooms etc. which you may have to/want to replace in an older property.

Make sure you let us know what happens........

skintlass

I tried that with Wimpey last summer and they didn't renegotiate and pulled the offer - that said I think the developers are more desperate now.

geordiescouse

Come on piano_man what did you do.....?