Part Exchange Survey

LongTimeThinker

We have recently had a surveyor round to survey our house we are part exchanging for a new build.

We are buying new build for full asking price @ 200K. The offer on our house is £15K less than it has been valued at (~20% less) and 4K over what we paid beginning of 2005. I feel the builders are getting a good deal on our house, its been renovated throughout, replastered everywhere, new bay window, french window, kitchen, bathroom etc. I do understand that it is lower because it is a "4 week selling price".

I am now worried as the surveyor spent a lot of time looking at the roof, in the loft and:

- 3 of our windows are not double glazed, they could do with replacing (but I am guessing that the 3 estate agents who came up with price spotted this, reflected in their valuation)

- the roof is origional and isnt in the best state (but I dont know). Recent roof repair for slipped tile the roofer said it could do with replacing, rough cost £3k (but I dont know if he was trying to flog a new roof). Another roofer 6 months ago said its not in too bad condition.

Surbeyor was very quiet, thorough and he didnt give anything away, I asked him a few questions but he couldnt discuss with me.

My question is how lenient are Builders generally when it comes to survey?

My thoughts are as we are paying full asking price (I read that offers and asking price are on average 10% less) the builders wont be too concerned? I dont think there are many people queued up ready to buy these at full price surely?

The new house is built, we have our mortgage and the estate agents will be round soon to take photos and put it on the market.....

Am I right in thinking something will have to be seriously wrong with the house (so structural for example) for builders to pull out? Or will the nitpick\offer less over windows and roof?

We really, realy want to move. I am aware some people willl not think paying full price for a new build is the best move, however, we really do need to move for personal reasons and this is our way out.

Any thoughts?

grimsalve

I guess it depends on how much you need to move - if the builders are aware of your situation then there won't be much room to manoeuvre. Is there anyone else interested in the new property? You could possibly ask for a reduction in their asking price (but then what do you do if they say no?).

I part-ex'ed my previous house for a new build a couple of years ago and the survey was probably similar to yours. Done as a "quick sale" so effectively undervalued by about 15% (but it was a volatile time). The builders didn't want anything to do with it apart from sell it on as quickly as possible. It was a bit funny showing potential buyers around once the house was on the market though.

I suppose the question you've got to ask yourself is if you put your house on the market through an EA and the only offer you got was £15K less than the asking price then would you accept it? (and then maybe have to renegotiate if their survey picked up on the same problems that you're worrying about now? and still have an EA to pay, and still have to then negotiate with the builders, and the new house might have been sold by then, etc.).

LongTimeThinker

grimsalve wrote: »

I guess it depends on how much you need to move - if the builders are aware of your situation then there won't be much room to manoeuvre. Is there anyone else interested in the new property? You could possibly ask for a reduction in their asking price (but then what do you do if they say no?).

I part-ex'ed my previous house for a new build a couple of years ago and the survey was probably similar to yours. Done as a "quick sale" so effectively undervalued by about 15% (but it was a volatile time). The builders didn't want anything to do with it apart from sell it on as quickly as possible. It was a bit funny showing potential buyers around once the house was on the market though.

I suppose the question you've got to ask yourself is if you put your house on the market through an EA and the only offer you got was £15K less than the asking price then would you accept it? (and then maybe have to renegotiate if their survey picked up on the same problems that you're worrying about now? and still have an EA to pay, and still have to then negotiate with the builders, and the new house might have been sold by then, etc.).

Hi grimsalve, thanks for the post. We are happy with what we have been offered from the builders, I have spent a while trying to explain to my wife our house is only worth what someone will pay for it. She's a bit miffed because we are selling it so cheap.

Builders are not aware we are desperate to move, but I suppose we must have appeared keen to them - we tried to be coy but organised.

I'm just wondering if the builders are going to come back late in the game with an even lower offer for our house, or whether they will "write off" any spend to fix problems found (within reason) due to us paying asking price for the new build. Plus its built, we have mortgage ready etc

Lots of people have told me "they dont care about your house, they are making money out of the new house" which kind of makes sense, but I dont know how true this is.

Was wondering if anyone had any experiences or insider info?

Grogged

We p/x with DWH a few years ago.

The survey highlighted a couple of issues that they where not happy with and asked us to remedy, which we were able to do.

Their main aim seemed to that they where not buying a property that would spring any surprises on them.

They didn't negotiate on price or the terms, they just wanted something that would sell with no hassles.

We were told that if we couldn't fix the issues, we'd lose the reservation fee.

HTH

grimsalve

LongTimeThinker wrote: »

Hi grimsalve, thanks for the post. We are happy with what we have been offered from the builders, I have spent a while trying to explain to my wife our house is only worth what someone will pay for it. She's a bit miffed because we are selling it so cheap.

Well, you are selling it cheap - but you're avoiding all the hassle of dealing with an EA, paying for a hips pack, showing people round (or even worse, *NOT* showing people round!), have it sat in the EA window for months while all the other house prices are dropping, having some chancer make a ridiculously low offer, then realising that it's the only offer you've had and your EA are advising you to accept it, then having to lower the price even further after they've paid for a survey, then end up in a huge chain... only for the FTB at the start of the chain get cold feet and the whole thing collapsing, then having to go through the whole process again... and then find out that the new house you wanted has been sold to someone else.

In a buoyant market I would have possibly suggested avoiding a part-ex or maybe going in really hard with the negotiations so you could get a good part-ex deal but I think it might be some time before the housing market will be like that again.

With a part-ex you just sign on the dotted line and pick a date to move.

LongTimeThinker wrote: »

I'm just wondering if the builders are going to come back late in the game with an even lower offer for our house, or whether they will "write off" any spend to fix problems found (within reason) due to us paying asking price for the new build. Plus its built, we have mortgage ready etc

Lots of people have told me "they dont care about your house, they are making money out of the new house" which kind of makes sense, but I dont know how true this is.

I think the builders will just want to get rid of your old house as soon as possible, if anything has been spotted in the valuation survey then I think this would have already been taken into account. I seriously doubt that they would change their offer, the risk for them is that you could just walk away (think of it from their POV!).

My previous house (that I part-ex'ed) was okay but could have done with a bit of touching up here and there and this was reflected in the evaluation - the builders didn't do a thing to it, and they were true to their word (the "quick sale" price they offered me as a part-ex was the price it went on the market for)... and it was stc'ed before I moved out.

danielley

I'm in the same boat, I'm part ex-ing mine for a new build.

The surveyor came out yesterday but I wasn't there to deal with him. I have been a bit concerned that they will downvalue the house, but if they do so, I will be forced to pull out, as I am at the top of my budget already.

I'm not sure where I would stand in getting the reservation fee back, because I reserved based on their offer for my property and surely if they try to re-negotiate then, they are breaching the reservation contract?

I will let you know what happens in my case, but I am pretty certain that they want the sale as much as I do, so I will be surprised if they try to down mark the house.

grimsalve

danielley wrote: »

I will let you know what happens in my case, but I am pretty certain that they want the sale as much as I do, so I will be surprised if they try to down mark the house.

I think you're right, unless there's a queue of potential buyers outside the newbuild then I doubt the builders would want to risk losing the sale. Good luck, I'm sure everything will be okay.

LongTimeThinker

Thanks again guys for the replies, and hope everything works out for you danielley.

We're also thinking they must want it as much as we do, especially with the amount of money involved.

The house we are buying has been taken off rightmove today as well, so I am thinking that is also another good sign.

Fingers and toes crossed....

grimsalve

LongTimeThinker wrote: »

The house we are buying has been taken off rightmove today as well, so I am thinking that is also another good sign.

Great news! Good luck!

Is your current house on the market with an EA now?

I was surprised how quickly things started to happen when I part-ex'ed... it was only the solicitors that slowed the whole process down (no big surprises there!).

LongTimeThinker

grimsalve wrote: »

Great news! Good luck!

Is your current house on the market with an EA now?

I was surprised how quickly things started to happen when I part-ex'ed... it was only the solicitors that slowed the whole process down (no big surprises there!).

Thanks It went up on the market a couple of days ago and the board was put up outside this morning, looks very strange seeing it there actually.