part ex for new build

allthe7s

I can't seem to find anyone who has done this!

We bought our house 2007, 2 months before the markets crashed. We are finally no longer in negative equity.

We have had a mortgage in principle approved for how much we'd like to lend for the new build house we like. We are going down the part exchange route as our house would take far too long to sell privately, and it saves on EA fees.

I am worrying though that they are going to make such a low offer that it doesnt cover what we have left on mortgage of current property. If it doesnt then obviously we can't proceed and will stay in our house.

Has anyone done this and been made a reasonable offer? we only have 15k to play with (between what we owe and what we think our house is worth based on other similar properties in area)

eddddy

Ask 3 or 4 EAs to give you an idea for what you could sell for through them. Then decide whether to accept the developer's part-ex offer, or try selling via an EA.


Part-ex will be a headache for the developer. If they think they can get another buyer easily without part-ex, they're likely to make a low part-ex offer.

Or if the developer is having trouble shifting the new houses, they might make a higher part-ex offer.

Noctu

We were made a fairly decent offer when we part exchanged. But never take the first offer!
We got them to reduce the house by £5k and up the part ex figure by £5k more than they originally offered.
But you can only wait and see what they come back with

AnotherJoe

My previous neighbour pEx'd. I think, from comments he made, that he thought he got a reasonable deal.

I would have suspected that either they give you a good deal on your pEx but little or nothing off the new house, or vice-versa but it seems according to Noctu they may do both, I suppose if they have a discount in mind they can split it however they like.

Its not just about money for them its cash flow as well.

Cornucopia

I did 2 Part-ex house purchases many years ago, and found that the offers were reasonably fair.

More recently, though, I approach a Builder about PX and was surprised at the low offer they made.

Like any such negotiation, it pays to know the figures before-hand (both the market value of your existing property and the list price and incentives value of the property you are buying). Also, you really need to be prepared to walk away if the figures are not good (and I would expect on-site sales staff to know that most people won't take a valuation below, say, 90% of market value).

tim9966

I'm doing that right now.


The offer they made was about the price I was thinking off anyway. I said I'd think about it and the next week they offered £1K more which I accepted.


My house is now on the market and is up for sale for £3K more than I was paid for it, but they have paid for everything so far.

swishy87

We part exchanged last year. We got a reasonable offer I think. They sold ours on for the same price but we saved on estate agent fees is how I see it and took away the hassle of a chain.

RenStar

We've done part-ex twice, first in 2007 and recently in 2013. Both times, the offers were fair/reasonable - a few hundred off what we might have made if we'd sold ourselves less agents fees which we figured was worth it not having to deal with EAs!! And it was a lot less stressful too, meant we could to stay in our home till our new house was finished so no additional expense and hassle of moving into rented or worrying about chains etc.

We weren't able to negotiate much on the price offered via PX by the builder (Persimmon and Charles Church) but we did make sure we got things like flooring, upgraded tiles, kitchen, white goods and some built in wardrobes etc in our new home. Just keep asking for stuff (nicely!) until they tell you no at least three times