Putting an offer in on someone's part exchange house sale

Seaglass72

Hi - I am interested in a property that has been on the market since 21st June - it was reduced by 3% around the 3rd week of August. I went to view the property which is being advertised by a local estate agent about 3 weeks ago and the owners who showed me around said that it was being part-exchanged as they are buying a new build. They said they thought I could probably get a good deal on it as (in their words) "the builder just wants to get shot of it". Confused about the situation I have since found out that the estate agent is dealing with 'Movewithus'. I put a low offer in but the estate agent briskly (and rather rudely) came back to say it had been rejected and that it was not a panic sale so I needed to re-consider. I am not sure what to think now. The property remains on the market and I remember the owners saying they are moving out early October (during first 10 days). My questions are... at what point will the house builder or 'movewithus' really want to shift the house as the estate agent did not seem bothered - or is there really no rush at all? I would like to try and negotiate the best deal obviously and wondered if anyone else had experience of this situation - is it really just the same as the house being in a chain in the normal way? I am confused any advice would be much appreciated as to the best approach. Many thanks.

eddddy

Seaglass72 wrote: »

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My questions are... at what point will the house builder or 'movewithus' really want to shift the house as the estate agent did not seem bothered - or is there really no rush at all? I would like to try and negotiate the best deal obviously and wondered if anyone else had experience of this situation - is it really just the same as the house being in a chain in the normal way?
...

I guess it's the same as most sales really, the house builder will want to sell as soon as possible at the best possible price.

Presumably, they think than can get a higher offer than yours, so they're hanging on. If they don't get any higher offers over the next few weeks (months?), they may come back to you.


It's sometimes difficult to 'decode' EAs' selling strategies, but if the EA was rude, that may suggest that the offer is quite a way short. If it was a matter of a few thousand, the EA might have tried to 'sweet-talk' you into increasing it.

It might help to ask the EA what kind of offer he/she thinks the vendor would accept. (Don't necessarily believe the EA, but it may give you a feel for things.)

AlexMac

I don't know if one can generalise, butt the only time we ever tried to buy a vacant, no-chain, part ex (from a major developer who, one would think was efficient) it was an absolute nightmare. As the developer seemed wholly focussed on new sales targets on thier big estate developemnts of hundreds of properties, no-one in their offices seemed to give a toss about the odd part-ex 'secondhand' house on their books. They refused to answer our solicitor's routine pre-purchase standard enquiries, dragged their heels for weeks, gave incomplete or possibly deliberately misleading info about statutory notices and past debts on the on the service charges accounts, sent incompetent cleaners in who used smelly mops on the floors and ruined the steel hood and splashbacks with caustic cleaners after our initial viewing and accepting our offer ...

Then, to top it all, then, when a burst pipe brought down a ceiling, they refused either to remedy it or reduce the price to cover the damage, suggesting we claimed on insurance after completion!

In the end, we walked away, losing several hundred in abortive legal fees.

But I'm sure your corporate vendors won't be such incompetent idiots! And as for trusting anything an EA says or signals....? Let 'em stew for a bit. Or maybe phone the vendor direct?

Seaglass72

Well thought I would update on this in case it helps anyone else... The house was put on the market in June for £164,950. It was reduced 8 weeks after that to £159,950 and then at the start of October to £154,950. Made two offers both were rejected - the highest one was for £151,000. I'm a cash buyer no chain but I have walked away from it - having researched the area and prices thoroughly others are barely going for that and needless to say the house is still on the market. In this scenario the estate agents are dealing with Movewithus (on behalf of the builders) - who are effectively the vendors. It seems they are holding out for more. It is an interesting experience in that, what appeared to be an opportunity to haggle and get a good deal is in fact worse for the lack of emotional or personal motivation that you would normally experience with a vendor who was keen to move and had found their dream property.

SuzieSue

Seaglass72 wrote: »

Well thought I would update on this in case it helps anyone else... The house was put on the market in June for £164,950. It was reduced 8 weeks after that to £159,950 and then at the start of October to £154,950. Made two offers both were rejected - the highest one was for £151,000. I'm a cash buyer no chain but I have walked away from it - having researched the area and prices thoroughly others are barely going for that and needless to say the house is still on the market. In this scenario the estate agents are dealing with Movewithus (on behalf of the builders) - who are effectively the vendors. It seems they are holding out for more. It is an interesting experience in that, what appeared to be an opportunity to haggle and get a good deal is in fact worse for the lack of emotional or personal motivation that you would normally experience with a vendor who was keen to move and had found their dream property.

Yes, but they will want to sell it eventually so you should keep an eye on it. We part-exchanged in June 1997 and the builders gave us £50k for our flat. It eventually sold for £38k in October 1997.