Part Ex Property for sale

RUSTY1966

Your thoughts please

I'm considering buing a 3bed semi on a village estate in gloucestershire. The current occupiers have Part exed the house to property developers as they are buying a brand new house.
Asking price is £205,000
Condition is Basic/good but not updated since built approx 10 years ago. (no new kitchen, no garage(integral) conversion, no conservatory.

Friend Bought identical house in same culdesac last december for £183000
(house i'm looking at is in better position (SW facing garden sun in evening fields behind) House been on market for 2 weeks (£205000 is not realistic asking price)

My questions:

Has anyone bought a part ex house

How desperate are developers to sell part ex properties

Do they buy them for full market value

What are they really willing to accept

Nige

bylromarha

you can guarantee the builders did not buy the house for 205k

I'd put in an offer on the low side, stating your reasons why you think 205 is too high (house down the roads price etc etc) and see what happens.

Imelda

Hi Rusty1966,

I bought my flat from a developer (who had acquired it part ex) last year. The developers put in a new kitchen and bathroom (all good quality, like they would put in a new home) but I still got it for less than the market rate. They did want a 4 week exchange though (had refused higher offers from people in a chain). I don't think they do pay full market value, although it's hard to tell (I don't think they go through the conventional route and so the exchange price is not listed on the property prices website) and basically have a price they need to meet in order to make a profit (their main profit comes from the new house, this is just a way of getting people in quickly). I bought my flat for £118,000 and others exactly the same in my block are on the market for £135,000. I will keep checking rightmove to see how much they eventually sell for. One thing to say, it was a very smooth process, their legal teams are very efficient (scarily so) and one item that was brought up in my survey (an electrical query) was rectified within 2 days (and signed off by an independent electrician). In the end from offer to exchange was 5.5 weeks.

danielle21_2

Hi Rusty, My purchase is completing on friday, I bought a 3 bed semi that's a part exed property. I had been on the market 6 months & is only 3yrs old & has en suite & down stairs loo, gargage etc. The reason why I think it'd been on the market so long is because it fronts a main road & is next to a hand car wash, both these arnt a problem whatsoever to me or my partner as the estate its on is really nice so its our ideal house.

It was originally on the market for £146,995, the reduced it to £139,995 as it wasnt selling & they need pretty quick sales, we bought it at £142,500 & builders paid, 5% deposit & stamp duty (they bought the house for £135,375) so when its complete they will lose out by almost a grand, however, they will have made money on selling a new build.

I would ask for as much as you can out of the seller!!! we did & got a great deal.

Hope all goes well for you,

RUSTY1966

Thanks all

Last night I offered 193000. Phoned them back this morning and told them to hold as I need to re-view. I initially offered 185000 (realistic in my view) and last offer 191000. To bring up to date will take about 5000 (new bathroom, kitchen, carpets, curtains) although what is there at the moment is fungtional but dated (10 years)

So far I have been doing all the running although EA conceeds that house is initialy overpriced. Vendor may settle for 195,000.

What do you lot think

Pay the extra couple of grand or walk away. (195000 is absolute top, no more, nicht, can't aford more without selling a kidney)

I NEED SOMEONE TO TELL ME WHAT TO DO AND RUN MY LIFE FOR ME)

N

Doozergirl

RUSTY1966 wrote:

I NEED SOMEONE TO TELL ME WHAT TO DO AND RUN MY LIFE FOR ME

:rotfl: Sounds like you're doing okay to me!

What do you think it's worth in tip top condition? You need to be sure that you're going to be getting a bit of added value from the deal. If you think at £195,000 that you will end up with a slightly smaller mortgage than you would have done if you'd bought it in tip top condition, then you're doing okay.

I would be direct and ask for the developer's lowest price on the property in order to thrash out a deal or know whether it's time to walk away. You've done enough bartering to warrant the question. You're also going to have to explain away your £193k offer by explaining that having worked out a budget for the refurbishment, you don't think it's worth that. If they think you can afford it, then they will take advantage. Make it an issue of worth, not affordability.

Once you have their price, come in as low under that as you dare. Final offer, but exchange within 4 weeks (if you're chain free and in a position to try). You know you're prepared to go to £195k, but I'd take the opportunity to play hardball with a developer and get it for as little as possible. May involve waiting for an answer a few days, but the game is won by the person that doesn't break!

RUSTY1966

EA states that price was decided on advice of two independant surveyors....do i have a right to see report or are EA's BSing

Others have sold recently, with conservatory and garage conversion for 193,000, but this house has slightly better position. (I may add that identical style house, 3yrs old in tip top condition was on for 199995 and was taken off market unsold as vendors "Couldn't find suitable property")

Jorgan_2

Will they meet you half way? The property hasn't been on the market for a long time so they may be holding out & testing the market. They may also think that you are keen to secure the property as you have increased your offers by £8k in a very short period of time.

Jorgan_2

RUSTY1966 wrote:

EA states that price was decided on advice of two independant surveyors....do i have a right to see report or are EA's BSing

Most company's will get 2-3 surveyors in before setting a price, be it a part ex, relocation or repossessed property. You have no right to see the reports they have done on the property, they were done for the builder. The EA won't have seen copies of the report either.

RUSTY1966

I suppose that I'm worried that someone else with more money than me is going to get it.

Bottom line 193 is my absolute top whack.

House is only realy worth 189000 but position is good (sun nearly all day in back garden)

Got a viewing today at 1630hrs

EA has supposed to have another viewing at 1700hrs.

I suppose i could wait and see if they turn up.

I want this house, but not at any cost.

Pay up or walk away.

Is there no one out there with a crystal ball.

I've lost both mine

N

Jorgan_2

Those with the biggest sets of crystal usually win in these situations. Be careful with the other viewing, if you hang around in the property waiting to see if anybody else turns, up it could go against you. The fear of loss is a great selling tool, you walk out the door as the other viewer turns up, the EA tells the second viewer that you really like the house & have made an offer, it may spur the viewer into offering themselves. Best to be discrete & watch from a distance.