Help Understanding?

AnnaLMLH

Hi
Can someone help me get a better handle on understanding valuations?
we will most likely try part exchange

so for examply if a house was valued to sell by an estate agent at 128k,
am i right in thinking a house builder sends two valuers out and its an average of what they come out with?
or is it all completely different?
obviously no one would partage a part exchange of it was 30k less than a sale price
builders round here you cant get a part exchange price without having a dip first, and we arnt looking to that right now, its just a mine field of not knowing
thanks so much

kingstreet

The builder can get EA marketing appraisals from as many agents as they like, then they can offer you whatever price they like.

There is no hard and fast rule here.

Many builder commission a homebuyer's report later in the process as well, which can mean the entire deal is overturned/renegotiated.

Builders may offer a better PX value which means you'll pay more on the new purchase, or vice versa.

AnnaLMLH

thank you
Im looking at the builders house prices as advertised (without trying to knock down etc ) to get realistic figures in my mind, I want to be as clued up as humanly possible by the time we try do this

bookgirl_2

It was three and a bit years ago, so property market was quite different but this was our experience.

We were on the market at 130k but hadn't sold in a year.

Third party co on behalf of builder got two agents and the one we were on the market with to value for quick sale. Came back with 110, 115 and 120. Top one was 'our' agent, the other two were local chains not well regarded.

Builder offered 118k against list price for their new build. We were about to sign when we got an offer of 125k for ours, which meant we could also negotiate a further 8k off the new build.

So not part exchanging meant we were 13k better off after EA fees.

kingstreet

You can also use HTB - Equity Loan if you don't part-ex (assuming no other property is owned on/after completion).

AnnaLMLH

thanks htb, wouldnt touch me i am afraid

kingstreet

AnnaLMLH wrote: »

thanks htb, wouldnt touch me i am afraid

Wouldn't touch you?

That sounds like you don't know how HTB - Equity Loan works.

Basically, if you can get the mortgage, you'll get the equity loan.

Please explain why you think you won't get the equity loan.

kingstreet

There are no credit checks carried out for HTB - Equity Loan qualification in England.

If you can get the mortgage from a qualifying lender, you are buying a newbuild from a qualifying builder and have a minimum of 5% deposit, you'll be fine.

AnnaLMLH

thank you
thats if we sold the house seperatly to part exchange right

kingstreet

Yes. Part-ex isn't accepted on HTB.

Assisted sale/purchase is. Speak to your builder and see if they offer it.

AnnaLMLH

thank you ill make sure we do