Persimmon Part Exchange

nanders

Hi

I am considering a home part exchange scheme via Persimmmon and am after some advice on their valuation method.

Do they offer a fair deal? Or do they offer valuations somewhat under the current market value?

Any advice greatly appreciated as I am relying upon their valuatioin being reasonable in order to raise enough capital for a deposit for the home.

Thanks

terrierlady

no your not going to get the same as you would on the open market, its like part exchanging your car against selling it yourself but has lots of advantages like staying in yours till the new ones ready , no chain to break, plus free removals from some companies and even discount.

uropachild

I had some EAs come and value our house for a possible part exchange with George Wimpey. I have to say that we would have got an okay deal if we'd have been able to afford to buy theirs and do the part exchange.

EAs tell the developer 3 prices - a price for putting the house on the market, a price for what they would expect it to sell for within 6-8 weeks and lastly a price for a "forced sale," which is a bargain price basically that the house would be snapped up at.

Ours was valued at £145,000 to go on the market and we would expect to get £135-140,000 within the 6-8 weeks. For a forced sale we were quoted a price of £125-130,000.

GW first of all offered £125,000 but because i'd also got EAs of my own in i knew that was the lower end of the valuations so i said no. (The EAs that are appointed by the developer won't tell you their valuations). GW came back to me after a while and offered £135,000, but it turned out we couldn't afford to pay what they wanted for their house anyway.

A developer will be more likely to give you more for your house than take less for theirs. It all equates to the same thing, but doesn't 'devalue' their houses if people are looking on nethouseprices etc. at what they sold for.

hex2

I did a Persimmon part ex some years ago. They sent three EA's to look at mine for a quick sale quote, and then offered the average of the three valuations. It was easy and painless, very different to my most recent purchase with a long complicated chain, delayed exchanges, etc, etc.

uropachild

Oh, and if you're curious our house would have been valued at about £160-165,000 at peak (going by neighbours who were selling) and we bought it for £142,000 in Q2 2006.

michael1983l

The new permission homes in our area are about 30 - 40% more expensive than homes of equivelence on the open market. When you come to get your mortgage you will be told by the valuer this no doubt and have your mortgage refused if you havn't put enough equity in yourself to cover the valuation shortfall.

Steer well clear is my advice but I'm sure you will make your own mind up.

nanders

Hi

Many thanks for everyones replies. I now have a problem in that I can only raise 90% (85% at a push) LTV.

My current lender C&G won't touch me as i've now discovered I need a larger LTV on a newbuild.

Any ideas/suggestions?! Help!

Nathan

stingy_rach

I part exchanged with Barratt homes in December 08. I already had my home on the market at the time for £143,950. This was based on four valuations I had had done a month prior and was the top end as we weren;t in too much of a rush to sell.

Barratts contacted three of the agents and asked them for a valuation based on a 4-6 week turnaround - this came in at £124,000. In order for us to move we needed to get around £140,000 as this would release enough equity in the house.

Barratts offered us £144,000 and discounted the new house from £215,000 to £208,000 and paid us £10,000 as a deposit contribution. In order for us to receive this we had to complete in 2 weeks which we managed although the process was extremely stressful.

We are now in our new home and although we understand that the new house was overvalued slightly - next door has just gone back on the market for £197,000 - we are extremely happy and feel we got a good deal.

I would definately haggle on the valuation - get your own independant one to make sure - and also on the new house but be prepared to move fast to get it. part exchange is not without it's pitfalls - many people warned us against it - but it worked for us.

geordiescouse

I have just pulled out of a part ex deal. The offer on our house was £20k less than I have now put it on the market for (although I am prepared to take approx £10K less than asking price, therefore only £10k short) and they reduced the price of their house initially by £20k. After various haggling I managed to get a further £10k off their price so the figures were looking good. I only pulled out as they changed the site layout quite dramatically which had serious implications for the plot I wanted. Otherwise I think we would have been about to move in approx 4 weeks.

I feel if this your dream home then go for it, my current house was a p-ex deal and I have been here over 10 years with no probs. Think long term!

michael1983l

stingy_rach wrote: »

We are now in our new home and although we understand that the new house was overvalued slightly - next door has just gone back on the market for £197,000 - we are extremely happy and feel we got a good deal.

.

That might be what its on the Market for but I bet it doesn't sell for that. There are still many people and estate agents in denial over valuations. The Estate Agent near me says that the banks valuations are all coming in lower than what the houses are being valued for on the market considerably.

terrierlady

speak to the f, advisor on the development they know where to place mortgages for new builds what lender will except as incentive etc keep speaking to the sales exc on site they are there to help you ever step of the way.