Part exchange properties for sale

fi-o-na

I have just began searching for my own property, and have stumbled across the part-exchange deals, property developers offer.

I understand the developers buying the houses inexpensively from people wanting to buy new builds e.g. to get people into their properties. Therefore the developers need to resell the properties at a profit. Of the couple I have seen with this scheme the resale value of these houses seem reasonably priced. How are the developers making any money ? Is there a major catch I am missing, it sounds to good to be true for a first time buyer ( like me) ?

Also is there a website that holds all the infomration of developers undertaking such schemes ?

Thanks

Doozergirl

Developers often offer incentives like 5% deposit paid, carpets, curtains etc. which wouldn't be offered with a part-ex. Also, in the right financial position, it possible to get large discounts from developers, especially on the harder to sell plots, which is generally where part-ex is offered.

Basically, there's enough of a profit to be made on a full price new build that they can offer a decent price for part exchanged properties.

Most developers in my area offer part-ex, just pick up your local property paper or find the developments and ask the sales people if they will be offering part-ex at any point. https://www.smartnewhomes.co.uk (or something) is a good place to find new build developments in your area.

New build is horrendously overpriced in my opinion.

mountainofdebt

We bought our house from a couple that was doing a part exchange with their builder.

Basically the deal that they were being offered was a guaranteed minimum price so if they sold below that price, the builder would make up the difference.

So the end result was we got a bargain.