Part Exchanges? Are they really bad?

AnnaLMLH

Hi
I have no experiance with part exchanges on houses, and Ive searched the threads to find details but I am coming up short.

Are prices on part exchanges really bad? I was hoping to go this way instead of selling our currect house on the open market, but now I am unsure if it would be worth it
thanks for any help

amnblog

Each case to it's own. It depends how good the purchase deal is also.


If you have ever part exchanged a car you should know that you are paying for someone's profit.

dimbo61

I did this many years ago with a building society who owned a number of properties after funding a new estate.

We part exchanged our 3 bed semi for a four bed detached.

AnnaLMLH

thanks ive never part excahnged a car either, Im afraid

audigex

The idea for you

- You don't have the hassle and much of the expense of selling a house, so you can move faster with less faff
- You may get a "discount" off the new purchase

The idea for them

- They get your purchase through faster, making the funds available for other projects
- They also get to make a profit off your old house, although they'll tend to just shift it along fairly quickly

The downside for you is that you won't get market value for your house. The downside for them is that it's a bit more admin work/cost

In general, though, it tends to work out better for them financially, while you tend to lose out overall. It's a case of whether that financial loss is acceptable to you, for the reduced hassle during the sale/move.