Part Exchange - what % of genuine value do you tend to get?

scarletjim

Question for anyone who has done a part exchange using their existing property, obviously the property company who buys your house values it as 'for cheap sale' - typically, what does this mean in practice? Do you tend to get 90% of the genuine market value or what sort of amount?

It should be pretty standard for mine, because it's a flat and there are quite a lot of them that have sold in the last couple of years, so there are good indications from the market, unlike a one off unusual property which might be harder to value.

Glyndwr2000

We have just had part exchange valuations done on our house.

Bear in mind that we have also had valuations to put the house on the market which came in at £200K and that the house next door sold last month for £190. Take a guess at what the "full market value" came in at.


£160k

I think we will not be taking them up on their amazing offer!!

westv

I part exchanged a number of years ago so things may have changed and got 95% of the valuation done by 3 (I think) EAs.

harz99

All the major home builders are only likely to offer the bottom of the 3 price scale in the current market.

1= EAs marketing price
2= expected sale price
3 = quick sale price

At the moment my own research is coming out at price 1 less 10% for price 2, and less a further 10% for price 3. So your looking at around 80% of the EAs valuation.

So yes, the "full market value" figure will be a lot less than your EA says, but you have to remember the builder need to sell your old house on quickly.

If pex works for you do it, if the figures don't add up for you walk away.

One word of caution, don't be forced into putting any money down before you get an pex offer - the builder will not be paying the EAs, they do the valuations for free (hoping to get the resale business).

mrs-h_3

We are in the process of part exchanging, we had 3 valuations done and tried to sell it for a while at a higher price than offered by the builder to no avail i think it can depend on the price of the property you are purchasing as generally there has to be a 30% minimum difference between the two which is what our part ex has done, and to be honest we were quite surprised as in this housing market, whilst its not the full value we have achieved its not that far off and it enables us to hopefully proceed

scarletjim

mrs-h wrote: »

...whilst its not the full value we have achieved its not that far off and it enables us to hopefully proceed

May I ask how near to a genuine market valuation you think the P/Ex offer was? Posters above suggest 95% in one case and an estimate of 80% for my situation in another case, quite a big difference..!

harz99

scarletjim wrote: »

May I ask how near to a genuine market valuation you think the P/Ex offer was? Posters above suggest 95% in one case and an estimate of 80% for my situation in another case, quite a big difference..!

Scarletjim; when you apply for a pex the builder gets 3 (occasionally only 2) EAs to visit you, on the form they complete there are the three prices I mentioned above. The form also asks for an opinion on the likely time taken to sell. At best you are going to be offered price 2, and probably in this market only price 3.

So the 95% quoted in earlier years (very likely with better market condition) is only ever going to be of prices 2 or 3.

harz99

mrs-h wrote: »

We are in the process of part exchanging, we had 3 valuations done and tried to sell it for a while at a higher price than offered by the builder to no avail i think it can depend on the price of the property you are purchasing as generally there has to be a 30% minimum difference between the two which is what our part ex has done, and to be honest we were quite surprised as in this housing market, whilst its not the full value we have achieved its not that far off and it enables us to hopefully proceed

Correct on the 30% differential; there used to be a few companies offering an 80/20 split but not nowadays.

Pex is usually only offered on plots that are "sticking" because they are not in a good location, have peculier gardens or design features that don't appeal to many, or simply they are overpriced for what they are, so the good pex deal is not always what it seems.

That said, if it suits you to go that route, and you are happy with the deal, I am happy for you as well.

mrs-h_3

scarletjim wrote: »

May I ask how near to a genuine market valuation you think the P/Ex offer was? Posters above suggest 95% in one case and an estimate of 80% for my situation in another case, quite a big difference..!

Ours was 95% roughly - that made it the 30% difference bang on, so it can happen i think it depends on the builder, we are aware its the builders year end in June so he obviously pushing for all sales to be complete before then.
If you have a purchase price on the house and know what yours is worth for selling see if its around the 30% mark if its less I think be prepared for a cheeky valuation!