New Builds and Part Exchange

WelshNic

SailorSam no, generally you need to trade up 30%+

grimsalve

SailorSam wrote: »

I was looking at the signs for new build flats by me, they said you could do a part exchange.
My house is to big for me, probably worth about £200k, these flats were less than £100k. I doubt they'd give me the cash change would they.

You could buy three?

badaz52

grimsalve wrote: »

I think that's the point of doing a "quick sale" valuation, any little jobs that need doing will be reflected in the offer price.

True but they originally valued it at £150k with bridgfords against a £225k house, valuation was the correct market valuation as before we listed with a local EA bridgfords came round and valued it at the same so nothing dodgy there.

As we have changed to a cheaper house £200k, they said there offer would have to change from £150k to £140k.

Thing is they already know its worth more and if they knock us down less than £140k they won't get a sale as we can't afford anymore we are already at the top of our budget when considering the developer is not giving us anything in the new build its all optional extras.

SailorSam

Three !!!
I want less cleaning not more.
It was just an idea. I thought if i to sell and buy a flat for half the price that would leave enough for a second flat in Spain.
If i did that could i keep my account here or need to start again as SenorSam.

oggy1511_2

Hi Im confused now once the devolper makes you a offer after the valuers been round how can they drop their price if little jobs need doing.
What happens once they make you a offer can they drop it later on in the deal ?
Anyones advice greatly recieved
Thanks Oggy

badaz52

Hi Oggy,

If you have had the official PX offer from the developer, in my case Taylor Wimpey there are terms and conditions you have to agree to.

Notably the most important is the PX offer is subject to a RICS Survey, so the offer can change or be withdrawn depending on if the survey finds anything that scares them, generally there are a few things that are picked up on and usually the developer asks you to put them right before agreeing the final price.

In my case their offer puts us in at the top of our budget which we have made clear to them. If they drop that valuation by just £1000 they will lose the sale as we just can't stretch anymore.

WelshNic

badaz52 wrote: »

True but they originally valued it at £150k with bridgfords against a £225k house, valuation was the correct market valuation as before we listed with a local EA bridgfords came round and valued it at the same so nothing dodgy there.

As we have changed to a cheaper house £200k, they said there offer would have to change from £150k to £140k.

Thing is they already know its worth more and if they knock us down less than £140k they won't get a sale as we can't afford anymore we are already at the top of our budget when considering the developer is not giving us anything in the new build its all optional extras.

You'll generally only get a p/x if your house is worth 70% or less than the new home, do the maths, that is why they've made it 140k - 150k would be 75% of a 200k house, that's above their limit.

grimsalve

badaz52 wrote: »

True but they originally valued it at £150k with bridgfords against a £225k house, valuation was the correct market valuation as before we listed with a local EA bridgfords came round and valued it at the same so nothing dodgy there.

As we have changed to a cheaper house £200k, they said there offer would have to change from £150k to £140k.

Thing is they already know its worth more and if they knock us down less than £140k they won't get a sale as we can't afford anymore we are already at the top of our budget when considering the developer is not giving us anything in the new build its all optional extras.

I've bought/sold via part-ex schemes twice and both developers mentioned a "rule of thumb" of maximum 2/3rds part-ex and 1/3 cash/mortgage/whatever.

I guess it's to cover them in case there's any delays or hassle with selling your old property. TBH, I'm surprised they'd actually make an offer on your current house if you're interested in a cheaper newbuild.

oggy1511_2

Thankyou for your replies everyone
Oggy

badaz52

grimsalve wrote: »

I've bought/sold via part-ex schemes twice and both developers mentioned a "rule of thumb" of maximum 2/3rds part-ex and 1/3 cash/mortgage/whatever.

I guess it's to cover them in case there's any delays or hassle with selling your old property. TBH, I'm surprised they'd actually make an offer on your current house if you're interested in a cheaper newbuild.

Perhaps, I have mislead you all in what I put originally.

The new build we are currently going for is £200k, they have offered us £140k which is 70%, the £140k is subject to survey but i'm just worried that they will be petty and the survey will say the house is worth less.

Just to note Bridgfords say the property is worth £150k, the other local EA we are listed with says £165k and to be honest it would be disgraceful if they dropped their 140k offer.