Part-ex to new build - offer letter

deviousmeuk

Ive just received on Christmas eve a letter to sign from a new developer about a part-ex on my property against a new home.

I wasn't expecting this letter as I had assumed the sales person had mentioned the most important things about the part ex before I paid money to reserve the plot and SIGNED.

They had already undervalued my house by at least 5k but I thought OK my house isn't perfect but pretty good and that would be made up in savings in other fees.

This letter says:

1. -I must have a Central Heating Certificate from the last 12 months
- OK I will try and get one if need be but my boiler was was fitted 7 years ago by a local builder. not sure of status.

2. -They will retain £500 from the part-ex monies upon legal completion. They will arrange for an inspection and if home is not in good order they will deduct from the £500 fee-and-more with no maximum limit. < What does this mean. What is in considered in good order?

3. -They will also charge me for the estate agent fees if I pull out when they have a sale on my property . < Luckily there are no boards up yet because of Christmas.


1. OK, I read up about this and I can if needed get one at my own expense. It wasn't mentioned at time of putting money on reservation fee.

2. What do they regard as good order? Its a personal thing, surely when they valued my home this has to come into it? I don't want to move into my new home and then get a bill for a leaky radiator when they have undervalued they house by 5k?

3. I was told face to face, if I change my mind, even if someone is interested in my house then I would only lose my PLOT reservation fee. Now it seems I have to pay their estate agent fees.


They gave me a generous 24 hours to sign and send the letter back but over Christmas this isn't going to happen.

Any advice appreciated.

Argghhh

cross out the points you dont agree with and send it back

mikthe20

deviousmeuk wrote: »

They gave me a generous 24 hours to sign and send the letter back but over Christmas this isn't going to happen.

Any advice appreciated.

IMO, this is reason enough not to trust the developer - they are trying to railroad you into signing quickly. Personally, unless desperate for the property, I'd sit on the letter and wait for them to contact you (they might do so over next few days as it's end of quarter/year and salesperson might be incentivised to sell this month). If they do call, that would be a great opportunity to knock the price down or get more for your part-ex, as well as getting those silly clauses removed or watered down (eg. max £300 or whatever to EA). House prices appear to be going down, very few people buy at this time of year, and so it's a buyer's market and you're in a strong position.

Thrugelmir

1. Hopefully you have your boiler serviced on an annual basis.

2. If there's no issues then shouldn't be a concern.

3. If you don't pull out then shouldn't be an issue.

They had already undervalued my house by at least 5k but I thought OK my house isn't perfect but pretty good and that would be made up in savings in other fees.

The developer still has to sell your property. Part exchange takes away this hassle for you.

bris

It's all in the negotiation and who want's what badly enough. Can you afford to walk away, can they afford to lose your custom.


These are the questions you need to ask yourself you can negotiate but the party in the best position will win out in the end.

deviousmeuk

ok thanks fro the replies guys. Food for thought there.

I have just rejected and returned the offer. I'll see how they respond to that but I think I will just market my house the old fashioned way.

What really irks me about all this is I would rather have sold private and I had estate agents round and at the ready to list my house. But I was worried of losing this the last plot over the Christmas period and they mentioned if we got the ball rolling I might even be able to move in over Christmas which let me to believe they were open during the holidays. After I had reserved the plot and they took my money, she let slip the Site office was closing the day after next for 2 weeks and no further work would be done on the site. I could have had my house up for sale in that time and maybe had an offer on it. Kicking myself.