Is part exchange worth it?

Lawty123

Hi all,

I'm new to this site so appologises if this has been discussed several times.

I'm looking to buy a new home in the North East with a large building company (Miller Homes), and was wondering what peoples recent experience with part exchange have been like and Miller homes in particular?

The new build has been valued at £200K for a 4 bedroom house, and my 2 bedroom home has just gone on the market at £120K - do you get a realistic price for your current home or will I be expecting an offer of £100K or something?

Also is there scope for negotiations, say for example the builders offer me £110k for my property will I be able to haggle them down to £190k on the new build to make up the difference?

Any advice would be grately appreciated as I have no experience at all with new builds or part exchange.

Regards

SuzieSue

I part-exchanged with Barratts in the late 1990's and they offered a fair price for my flat. They got 3 estate agents to value it and took the average valuation. At the time the deal was you either got a 5% discount on the price of the new build or a part-exchange. However, this was in the boom times and I understand that more substantial discounts are available now and that you must haggle.

mark5

I done a part ex with Barratt's in 2006 and we got a decent price for our 2 bed, however there is a difference between a realistic decent price and an optimistic estate agent valuation. You will save money on estate agents etc.

SonjaLiK

As others have said, you will be offered a realistic price but that price is probably a lot lower than your asking price. You will be offered an amount they assume they will be able to sell your house for within 6 weeks so realistically, they are saving you time and agents fees but you won't profit from selling to them.
Having said that, if the new built is really what you want (not being overly impressed with Miller homes myself), you could end up getting a decent deal. And yes, depending on how their sales are going, you could get a nice discount on their house as well (we were offered part ex + approx 15% off, at Barratts, however, Miller offered us next to nowt but we were just enquiring there).