buying a house that has been part exchanged house for another house?

samroo

This scenario is quite interesting. It would appear that David wilson are offering for sale a home they don't actually own. I wonder how this would work in the conveyancing system if the OP did actually put in an offer and start the ball rolling. Also as the completion date is so far off the vendor (buyer of new home) can;t in fact have a guaranteed mortgage offer for their onward purchase as I believe these are only valid for 90 days. I think it would be best to look for another home

bazza1603

Hi,

We bought a part exchange in Nov 09. Offered the asking price and completion was inside of 4 weeks. People we bought from had no control over price and moved in with parents for 5 months. I believe they really wanted the house and if they didnot complete ASAP the house would have been placed back onto the open market.

Speak to EA. Normally builders part exchanges are only sold via certain EA.

Best regards

Barry

ciano125

- if the house is on the market for £169,995, is there any rule of thumb to use which would suggest how much the developer bought the house off the people for? That will be between the Vendors of the house and DWH and not for common knowledge. Actually if they have bought the house it will be on nethouseprices etc.

- any ideas as to what sort of offer a developer would be open to, i.e. do they mind taking a low price in order to get rid of a house such as this? Make a realistic offer and DWH will more than likely accept it. Make a very low offer and work up slowly, they'll still be likely to accept it as they need the cash. See my post above.

- if we couldnt move into the house until after Christmas, how long in advance of that should we look to exchange on the house? I am considering whether it would be better to exchange closer to the completion date in case the new build development gets delayed, and therefore also (i know not very ethical!) we could consider pulling out of the sale if house prices drop significantly between now and Christmas. It is not up to you to decide the exchange date, you will be asked to exchange contracts within 28 days like a purchaser of a New Build. Developers might have been in a position to dictate what happens and when in the past, but they dont anymore. You've got cash, you call the shots.

karie

Georgie4 wrote: »

I cannot see any way in which a builder would ask them to move out - in fact David Wilson will not have completed on the house until the sellers complete on their new one so they do not even own it yet. When Ipart ex'd mine in this way the buyers had the completion date changed 3 times because that is what suited me and I was the buyer of the new build so it was me the builder needed to keep happy:rotfl:

hi Georgie, I'm afraid you might be right. I don't see DWH making the occupiers move out any sooner either. Which is not the end of the world really, as we don't HAVE to move in straight away, but equally a lot can change in 6 months and I am reluctant to be exchange contracts in a months time for a house which we may not get the keys for until 2010...

karie

samroo wrote: »

Also as the completion date is so far off the vendor (buyer of new home) can;t in fact have a guaranteed mortgage offer for their onward purchase as I believe these are only valid for 90 days. I think it would be best to look for another home

Hi samroo, you make a good point about the mortgage, and our offer is likely to run out too before we'd actually complete. Therefore we put ourselves at the risk of potentially falling house prices and rising interest rates, but if we'd exchanged we'd have already paid the deposit and would have to like it or lump it...

karie

ciano125 wrote:

- if we couldnt move into the house until after Christmas, how long in advance of that should we look to exchange on the house? I am considering whether it would be better to exchange closer to the completion date in case the new build development gets delayed, and therefore also (i know not very ethical!) we could consider pulling out of the sale if house prices drop significantly between now and Christmas. It is not up to you to decide the exchange date, you will be asked to exchange contracts within 28 days like a purchaser of a New Build. Developers might have been in a position to dictate what happens and when in the past, but they dont anymore. You've got cash, you call the shots.

hi ciano, i completely agree. i am extremely uncomfortable about exchanging in 28 days and completing 4 months later (and relying on the new build to complete on time!). Having never bought a house like this before, I don't know the score, but I don't see why we would have to agree to terms like these. My thinking is that we can offer, agree to a drawn out sale, but exchange 28 days before final completion. The developer runs the risk that we will therefore pull out of the sale, but thats the risk they have to take unless they can find someone else who will exchange on their terms given the uncertainty...

P.S. the house sale (from seller to DWH) is not on nethouseprices etc. It may have only happened in the last few weeks (if indeed DWH do actually own the house...)

ciano125

I would buy a copy of the title plan and deeds from the land registry then in that case, its only a few quid and it will show you what you will own and how much the last person paid for it.

Also, DO NOT exchange, or put ANY deposit down now. Tell them that you are interested but you're not going to commit financially because you don't know what the state of the market will be in six months time. Keep looking for other houses in the meantime, you never know, you might find something much better.

mumoftwins

karie wrote: »

hi Georgie, I'm afraid you might be right. I don't see DWH making the occupiers move out any sooner either. Which is not the end of the world really, as we don't HAVE to move in straight away, but equally a lot can change in 6 months and I am reluctant to be exchange contracts in a months time for a house which we may not get the keys for until 2010...

Like I said earlier, if DWH have given a completion date for December then unless we have an earthquake or something so serious that the builders cannot continue the build, then DWH will want this completed for the last working day before Christmas as it is their financial half year end and they have to show that they have made XXX amount of profit.

With regards to exchange then they will want a 28 day exchange and will push for this although, in my experience, if everything is going well and it goes over a week or two, then they would be very unlikely to withdraw from the sale.

Also, if there is a buyer for the p/ex house then although DWH will exchange contracts they will never actually own the property just sell it on to you, hence nothing will show on nethouse prices.

ciano125

There are so many things that could go wrong in the next six months though, honestly, don't part with ANY money until a lot nearer the time. Also, with regards to their half year figures, they will be desparate to get money in, so offer low and hold your ground, they'll sell cheap I can assure you.

mumoftwins

They are more likely to sell at a 'cheap' price nearer to Christmas ie: end of October/November and push for exchange and completion to move in before.