Part exchange?

meebsquat

Miisus took a call from estate agent last night who mentioned a part exchange for a new build? She got appointment tomorrow to take a look and get more details, but was wondering if anyone has anymore information on it? Do you get the full asking price for your current property for example?

Thanks

Meeb

mark5

The chances are you will either get below market value for your property or you will pay an inflated price on the new property.

I done a part exchange in 2006 and it went well for us we were given a good price for our property but looking at nethouseprices etc I think we give between 5-10% over a realistic value for our new house. On the plus side we got a brand new house which hasnt cost us any serious money in maintenance over the last 4 years.

My own feeling is what ever deal they offer you there will be room for more negotiation!

meebsquat

Yeah I had a feeling as such...

lovemotown

The builder will arrange for 3 valuations to be done on your house, one to sell immediately, one to market at, and one that would be somewhere in between to sell in 6-8 weeks (I think). Anyway, the price the builder gave us is the price they managed to sell it at eventually, so was chuffed that we hadn't lost out at that end. Don't forget you save on EA's fees for selling your's to the builder, and it is a quick move without hassle and potential buyers trying to browbeat a reduction out of you. I then managed to get 2.5% off the price I bought off the builder, (not a lot, but you don't have a very strong hand on part ex), but there are others who actually paid what the builder asked, (I can't beleive they didn't barter).

Also, I bought just as the builder had reduced the price by 22k off their original price, (when the slump started).

There are many views, (often very negative) about new builds, but it is what is right for you. Yes, they are over priced and everybody knows the price is negotiable, it just depends on circumstances, (is the site nearly completely sold, houses sticking, etc etc), and what type of hand you have, (FTB, cash buyers). The deal suited us and we know everything is brand new, it all works, massive savings on heating bills due to insulation, all certificates for everything, (if and when we decide to sell), super sound insulation from neighbours, came with carpets, white goods, landscaped, and wangled an alarm system to boot, blah blah blah.

Theres something nice about having all this knowing you have peace of mind for 2 years with the builder, and a further 8 years with NHBC - you have to decide whether it's for you or not, and be prepared to push for a reduction if at all possible -DON'T pay the asking price.

But as I said, with new builds and part ex - it depends on the strenghth of your hand!