Part exchanging for a new build - advice wanted

kingstreet

The option being discussed sounds more like an Assisted Purchase than a Part-Ex. The OP should check what's being offered and if it is compatible with HTB.

silvercar

A family member did part ex successfully. Old house was 50% value of new, developer took a 10% hit on the subsequent sale price of the old house, so effectively gave away 5% of the new property. It made for an easy transaction, but had they sold themselves they could have negotiated on the new property price and got extras thrown in.

harrys_dad

It is a bit like buying a new car and deciding whether to part exchange or sell yours privately first and negotiate a discount. The main difference is the sums of money involved. The key issue is "price to change", namely how much extra you have to pay to "upgrade". You seem to have the worst of all worlds, where they are putting a lower value on your house and no discount on theirs. I would walk away.

Oh, and to continue the car analogy, a new house is like a new car and has a built in "new" premium. As soon as you move in, (or leave the showroom), it is suddenly worth a significant sum less than it was 5 minutes before!

Mickygg

harrys_dad wrote: »

It is a bit like buying a new car and deciding whether to part exchange or sell yours privately first and negotiate a discount. The main difference is the sums of money involved. The key issue is "price to change", namely how much extra you have to pay to "upgrade". You seem to have the worst of all worlds, where they are putting a lower value on your house and no discount on theirs. I would walk away.

Oh, and to continue the car analogy, a new house is like a new car and has a built in "new" premium. As soon as you move in, (or leave the showroom), it is suddenly worth a significant sum less than it was 5 minutes before!

Although I believe your last comment if new builds on the same estate or very nearby are still available to sell. If the estate is completed and no similar new builds within a few miles you don't lose the new premium like a car. I bought new build and sold for roughly in line with market movement over the period I owned, certainly no premium reduction.

horngkai

Wildsurf wrote: »

Well they offered £93k to which we said no. They have now come back with a "final" offer of £97k which is £3k less than the minimum we can accept based on what we can afford.

I will make have one final go at getting a deal we can afford.Otherwise it is a no go and we will give it up as a bad job.

Next move might me to see if we can sell our house ourselves which would then allow us to go down the "help to buy" route.

£97k offer is not bad at all. If you sell it house yourself, including estate agent fee and then factor in the stress of chain etc, it might be worthwhile doing it.

horngkai

Mickygg wrote: »

Although I believe your last comment if new builds on the same estate or very nearby are still available to sell. If the estate is completed and no similar new builds within a few miles you don't lose the new premium like a car. I bought new build and sold for roughly in line with market movement over the period I owned, certainly no premium reduction.

Bought my current flat in 2008 at £154k, just got a part ex offer at £146k, slightly lesser than what I can get if I sell it privately myself. Factor in market movement which is currently still about 10% less than the peak of 2007/2008, I do not think there is any new-build premium reduction in mine.

On the other hand, buying new-build now when the price are going up will probably means any of this 'premium reduction' will be negated relatively soon (if there is any in the first place)

Wildsurf

horngkai wrote: »

£97k offer is not bad at all. If you sell it house yourself, including estate agent fee and then factor in the stress of chain etc, it might be worthwhile doing it.

We have now had offers from 2 different developers, the 1st has upped part ex offer to £98,500, but no extras. Second one has offered £95,500 + legals + stamp duty. +£3k towards extras.

Second offer would work for us if they would swap voucher for higher part ex price.

Wildsurf

So it looks like carpets are the deal breaker. If we could get them thrown in with the £98.5k part ex offer we could do a deal. Without them it pushes our finance just over my personal limit.

Other than carpets and curtains are there any other extras we need to consider?

Also has anyone used an Assisted Sell scheme? One of the developers has suggested this combined with Help to Buy. I'm concerned that if we tried this they would pressure us to accept a lower offer than we want

silvercar

Wildsurf wrote: »

So it looks like carpets are the deal breaker. If we could get them thrown in with the £98.5k part ex offer we could do a deal. Without them it pushes our finance just over my personal limit.

Other than carpets and curtains are there any other extras we need to consider?

Also has anyone used an Assisted Sell scheme? One of the developers has suggested this combined with Help to Buy. I'm concerned that if we tried this they would pressure us to accept a lower offer than we want

Other extras: extra cupboards in the bedroom and/ or kitchen. Kitchen appliances, turf, outdoor water tap.

Wildsurf

silvercar wrote: »

Other extras: extra cupboards in the bedroom and/ or kitchen. Kitchen appliances, turf, outdoor water tap.

Thank you, I will make sure we check whether these are included.