House taken in Part Exchange/Chain Break by Builder Query

robertwood0015

Hi, We have recently agreed to buy a house where the vendor is moving into a new build. The builder has agreed to take our property in part exchange in order to break the chain.

We were informed by our estate agents that they would now contiue to market the property on behalf of the builder which seemed fine. However, we have now noticed that the builder has substantially reduced the price. I understand this will be so they can get rid of it quickly as they would have worked out what they could afford to let it go for accross the whole deal.

However we are a bit concerned that if for any reason the sale collapsed than we would be in the pretty difficult position of having to increase the price again which i am sure would harm our chances of selling. Is it right that the builder can begin to do this at this stage despite us not having even exchanged contracts yet so it is still our house. I guess we are even more frustrated that neither the builder or estate agent informed us even out of courtesy and found out via someone who came to view the house.

Am I right to be concerned her or just overreacting (I know we might be nervous as we have had previous buyers pull out - though not i must add due to any problems with the house) - we have never sold a house before let alone had to deal with builders

Milliewilly

robertwood0015 wrote: »

Hi, We have recently agreed to buy a house where the vendor is moving into a new build. The builder has agreed to take our property in part exchange in order to break the chain.

We were informed by our estate agents that they would now contiue to market the property on behalf of the builder which seemed fine. However, we have now noticed that the builder has substantially reduced the price. I understand this will be so they can get rid of it quickly as they would have worked out what they could afford to let it go for accross the whole deal.

However we are a bit concerned that if for any reason the sale collapsed than we would be in the pretty difficult position of having to increase the price again which i am sure would harm our chances of selling. Is it right that the builder can begin to do this at this stage despite us not having even exchanged contracts yet so it is still our house. I guess we are even more frustrated that neither the builder or estate agent informed us even out of courtesy and found out via someone who came to view the house.

Am I right to be concerned her or just overreacting (I know we might be nervous as we have had previous buyers pull out - though not i must add due to any problems with the house) - we have never sold a house before let alone had to deal with builders

Have you actually sold your house to the builder and they are now selling it on so the price doesn't matter or are they taking it in part ex and basically flogging it off cheap and quick leaving you with a shortfall?