Part Exchange against new builds

Masmat

Hello,

I've been reading the forum for weeks and picked up some really useful tips so last week I went to see a new build which was priced at £259,950 and ask them to value ours in part exchange. They have come back with a decent valuation on ours, £195,000 which is exactly 75% as per their maximum allowance for a part ex.

So I emailed them requesting a few extras (carpets/floor tiling etc) and stamp duty paying and if they wanted to lower their asking price to £249,950 and ours to £187,500k so stamp duty would be 1% instead of 3%. They call back saying they would only lower the price to £187,500/£249,950 but would not offer any extras or pay the stamp duty. Obviously I wasn't too keen on their offer in the current climate so just told the sales person that I wasn't interested if nothing extra would be included.

Do you think I am being reasonable or has the market picked up and take their offer? Any advice would be appreciated especially those who have recently used the part exchange option for new builds?

Many thanks.

Cannon_Fodder

tricky - if the valuation is really "decent", you have to consider the possibility that you might not sell for months privately or achieve anything like it...

how likely is it you will sell privately? difficult to judge, I know.

have you had EA valuations to confirm their offer is "decent"? just because they've gone to the 75% they impose on themselves, doesn't guarantee its as much as it would be on the open market...

how much did they reduce from to get to £259k, in the first place ?

if £259k was the original asking price, and they've dropped £10k at the blink of an eye, they should drop more, I would have thought.

Masmat

£259k is the original price!

We had a couple of EA round to value the house and they all valued it around £210k to £215k so their offer of £195k doesn't seem too bad. Guess we just wanted a few things thrown in that probably wouldn't have cost them the world i.e. carpets, floor tiling and possibly stamp duty! What surprised me was the fact they didn't negotiate and just called to said they would lower there's to £249k and ours to £187k which meant they would simply put ours on the market for £200k to recover the £10k they've reduced there's by!

Think I'm going to sit tight and see if they call back with a improved offer! It's not like we've being unrealistic with what we're asking for. Every builder seems to offer carpets, flooring and stamp duty!!!

Thanks for your help!

david29dpo

There offer may not be to your liking but at least they quick, to the point and honest.

ciano125

Personally I think I would try and sell your own house first, then go to them with an offer of 75% of their asking price. If they dont want it there are plenty of others who will.

Cannon_Fodder

Get a friend to ring them up offering a cash buy, see what price they reduce to...few new builds go for the asking price in the current market.

Are you mortgaging the 25%? You could see what valuation the lender comes up with...use that as a further negotiating tool. Lenders are tending to build in some further Negative Equity protection, through low valuations.

If there are plenty of plots available and time is on your side, it could be worth marketing to test the water, at £210k. You may be lucky and get £205k, which less EA fees is about £8k more than the developer has offered.

Then do as ciano suggest...

Avoiding the P/X is worth money to them...they don't know it will sell for what they have offered...long time ago I did a P/X, they sold-on my old house for a 2.5% loss, after two months with their cash tied up in it...