Bloor homes - Part exchange? Sell? How do we negotiate?

goodtoblog

There are so many conflicting messages out there about part exchange, i have looked into it myself and it is a great way of moving but as long as you look at all the options. My friends have part exchanged recently and they say it went fairly smoothly and got a good deal, i guess the best thing is that they do all the work for you. What area are you looking in?

donerkebab

We are thinking of part exchanging with Bellway - they have offered a fair price on part exchange - within 5% of external EA price. Negotiating on price of the new build we have managed to get 2 % stamp duty paid and carpets/kitchen fitted.

However am concerned - they want to complete within 28 days - with £1k initial deposit then further £5k deposit by end of 28 days - even though new build is not schedule to be completed until May/June 2010 (with no guarantee on build completion) - is this normal?

Other slight concerns they are unable tell me the council tax rate - even though people have moved in to already finished builds of same spec/model

Graham1979

I've agreed a part-ex with Croudace Homes recently, their deal was your house + more money = new house. They list it for sale themselves and cover any selling agents fees, removing cost and hassle for me. I get a guaranteed sale and stay in the flat until the new build is completed (3 weeks to go).

The price they offered me was (surprisingly) at estate agent market value, but because of that they wouldn't negotiate much on the sale price of the new build. Overall my experience has been quite positive of this process.

Worth noting that many lenders won't mortgage new builds on less than 20% deposit any more. RBS wouldn't do me a 15% LTV mortgage for new build and an IFA advised me this was pretty standard. I'd make sure you've got an mortgage agreement in principle that is definitely valid for new builds before proceeding.

Graham1979

donerkebab wrote: »

However am concerned - they want to complete within 28 days - with £1k initial deposit then further £5k deposit by end of 28 days - even though new build is not schedule to be completed until May/June 2010 (with no guarantee on build completion) - is this normal?

This is pretty standard, most developers want buyers to have exchanged contracts within 28 days of reservation as there's normally no going back from that point. However, if the build isn't due for completion until 2010 then you need to be really sure that you can get mortgage finance in place at that date. These boards have a number of horror stories where people have bought off-plan and can't get a mortgage when the time comes to complete.