Persimmon Part exchange valuation

shaolinmonk

I thought i would share to help other would be part exchange buyers out there.

I went to Persimmon to buy a new house and was interested in their part exchange.

Persimmon part exchange Plus was what i looked into, the terms were if you house is no more 70% of the house you are buying we will offer the full amount if this is the valuation.

It took 2 weeks to have 2 estate agents visit and and after both "independant":( (i think not) estate agents valued my current house i received a call letting me know what amount they had valued my house at.

(During this 2 weeks a had my own independant valuation done by an estate agent, and was valued at just over the 70% which persimmon offers. And i was willing to drop to the 70% level).

Persimmon offered me 39% under what i had my house valued at.

What a waste of 2 weeks and a huge insult to boot.

If you are thinking of doing part exchange with any company i would as a definate 1st step have an valuation done yourself maybe even 2 or 3, it's free and is the only way to ensure a fair market value for your home.

zaksmum

shaolinmonk wrote: »

I thought i would share to help other would be part exchange buyers out there.

I went to Persimmon to buy a new house and was interested in their part exchange.

Persimmon part exchange Plus was what i looked into, the terms were if you house is no more 70% of the house you are buying we will offer the full amount if this is the valuation.

It took 2 weeks to have 2 estate agents visit and and after both "independant":( (i think not) estate agents valued my current house i received a call letting me know what amount they had valued my house at.

(During this 2 weeks a had my own independant valuation done by an estate agent, and was valued at just over the 70% which persimmon offers. And i was willing to drop to the 70% level).

Persimmon offered me 39% under what i had my house valued at.

What a waste of 2 weeks and a huge insult to boot.

If you are thinking of doing part exchange with any company i would as a definate 1st step have an valuation done yourself maybe even 2 or 3, it's free and is the only way to ensure a fair market value for your home.

This seems to be common practice, sadly. We asked about P/X on a Bellway house, they also said the house you purchase has to be at least 30% more expensive than the one you wish to P/X.

Then they added that they would only offer a 4 week sale price on your own house. So as an example, they said if your house would normally go on sale for about 150K, they'd offer you about 85K so they'd be guaranteed a buyer in 4 weeks!

To add insult to injury, they said also that you could negotiate on their selling price, and maybe get flooring etc. thrown in - but NOT if you want to P/X.

You'd be losing so much on the deal I can't imagine anyone wanting to bother with it at all.

rodders470

We have had opposite experience. We're currently going through the process of a part exhange and the developer offered us market value on our house, a 10% discount of the new build plus carpets and flooring throughout. Sorry to hear it didn't work for you, but we couldn't be happier.

zaksmum

rodders470 wrote: »

We have had opposite experience. We're currently going through the process of a part exhange and the developer offered us market value on our house, a 10% discount of the new build plus carpets and flooring throughout. Sorry to hear it didn't work for you, but we couldn't be happier.

What developer was this, rodders?

oasisfeverish

We were going through a P/X with a developer.

2 estate agents came round and provided their opinion of value back to developer.

The figure they offered was 8k below the figure we needed on affordability, but within their 70% or less margin. We told them and then came back with an increased offer of 7k, which is around market value, excluding est agent fees. We accepted.

However we can not get the lending amount needed due to our annual salaries, despite being able to put down a 48% deposit, and based on our monthly income can easily prove we could afford repayments, plus every other household and living expense, and still have money over for fun!

So told the developers we are pulling out and offer to someone else. They replied, there is no one else.

5 x 4 bedroom properties nearing completion and no buyers in sight. I'm now hoping they will have to drop their prices to sell, but that could out play us as we will then be outside of their 70% margin.

GDB2222

zaksmum wrote: »

Then they added that they would only offer a 4 week sale price on your own house. So as an example, they said if your house would normally go on sale for about 150K, they'd offer you about 85K so they'd be guaranteed a buyer in 4 weeks!

Start from the point that EAs often overvalue to get the business, and then add in that most offers come in 10% below asking at the moment. So, I'm guessing that you house will actually fetch £125k, given plenty of time to market it. (Don't get cross. It's just a guess, so I can work out some figures.)

The developers will want to get rid of it sooner than that, so they'll have to sell for say £115k to £120k, perhaps even less in a difficult market. They'll have sale costs of say £3k, interest on the money tied up (£2k), insurance maintenance rates, say £1k, Stamp Duty when they buy it from you (£1k+), legal fees to buy and sell (£1k), their own admin costs. So, it can easily be worth only £110k to the developers, as against your £150k valuation from the EAs.

I'm not sure why the developer only offered you £85k. That seems rather low. Perhaps you have been spun a yarn by your EAs? I'd check actual sale prices (rather than asking prices) for your area very carefully, because it's distinctly possible your EA has told you what you want to hear, rather than what the property is actually worth.

Contessa

shaolinmonk wrote: »

I thought i would share to help other would be part exchange buyers out there.

I went to Persimmon to buy a new house and was interested in their part exchange.

Persimmon part exchange Plus was what i looked into, the terms were if you house is no more 70% of the house you are buying we will offer the full amount if this is the valuation.

It took 2 weeks to have 2 estate agents visit and and after both "independant":( (i think not) estate agents valued my current house i received a call letting me know what amount they had valued my house at.

(During this 2 weeks a had my own independant valuation done by an estate agent, and was valued at just over the 70% which persimmon offers. And i was willing to drop to the 70% level).

Persimmon offered me 39% under what i had my house valued at.

What a waste of 2 weeks and a huge insult to boot.

If you are thinking of doing part exchange with any company i would as a definate 1st step have an valuation done yourself maybe even 2 or 3, it's free and is the only way to ensure a fair market value for your home.

We looked at a Persimmon new development at the weekend. I'm not especially keen on buying a brand-new house but thought the part-exchange option might enable me to move. It seems the P/X is now only paying estate agent's fees and "handling the negotiations". Misleading, as full P/X ( albeit with "conditions apply") is on their brochure and web-site.