New Build Part Exchange?

henrygregory

This is a posting with a twist...
We looked at a new build, couldn't afford it (despite being classed as "affordable" for a Help to Buy equity loan) we were not comfortable with taking out almost 100k loan ontop of a mortgage.

Soon after, the home was reserved by another couple and soon after that, a smaller property came up on the private market for sale just around the corner. We took a look twice and made an offer of £10k less than the asking price. It took two days for the Estate Agent to came back to us with a response from the vendor.

It transpires that the home we are interested in is part of a Part Exchange deal on the home we had originally looked at but deemed too expensive.

I am looking for some advice from anyone who have used a Part Exchange service from a new build company as I am not so sure that the company are being as honest as they should be.

They tell me that the current owners are looking at a price £5-6k more than the offer I have made, but when I check on the building company website under their PX terms and conditions, it clearly states that once the deal has been agreed with the home owner and they have made their deposit, the building company will instruct three local estate agents to market the property and the property at this stage will become owned by the building company and they will deal with selling it, all the owner need do is leave a set of keys with the building company.

I am therefore not following why they are saying that the current owners are looking for a particular price as the current owners are now out of the equation.

In summary, I don't want to be ripped off by a greedy housing developer. - They had already hounded us daily about the first house we couldn't afford and were un-prepared to reduce the price. Just when we found somewhere alternative, a little cheaper that might do, we find they now own that.

6-5k may not sound like much but we are first time buyers, and with this potential property being smaller, it could go towards a conservatory to help make the place big enough for what we had wanted but couldn't afford.

Any experiences from part exchanges would be very welcome. I am feeling suspicious about the whole thing.

swishy87

Are you sure it is part ex and not one where they help them to sell?

MyOnlyPost

When EA says current owner they really mean person / company selling.

It is irrelevant who the "current owner" is. The only part that matters is that whoever is selling it wants more than you have offered

sultanabran

swishy87 wrote: »

Are you sure it is part ex and not one where they help them to sell?

Could well be this. Barratts run a scheme called Part Exchange Plus. Your house go on sale with them paying the estate agent fees and homebuyers report. If it doesn't sell after a certain number of weeks, they then buy the house at a price agreed at the start of the process.

Haylescom

We part ex'd our house. We told the builders what we expected the house to get on open market, they made an offer (it matched our request) after having it valued by 3 local agents. They put it on the market with all 3, the offers all went directly to the builders and it had nothing more to do with us. We just had to accomodate the 31 viewings (don't agree to sell at the start of a builder's Christmas break), didn't know who'd bought it and for how much until they asked for another look around.

henrygregory

Thank you everyone for your helpful posts.
This is involving a company very similar in size to Barrats.
It says very clearly in their brochures and promotional materials that if you PX, as soon as you accept the offer, you hand over a set of keys and the housing company will deal with setting up listings through Estate Agents and dealing with potential buyers. All you need to do is wait for the call to say you can move into your new home. Sounds like a great arrangement for the people looking to get their new place - though I am sure they will be paying for it!

@Myonlypost "It is irrelevant who the "current owner" is. The only part that matters is that whoever is selling it wants more than you have offered"
Yes, you are quite right, but, given my prior experience with the housing developer, I am quite sure they will want blood from a stone, so it is looking very unlikely we will get anything off of the asking price for this home, which is a real shame as we looked to the private market because we were quite put off of the over-inflated prices the big builders are asking for. They pass you onto their mortgage people before they will even speak to you about prices so they can find out exactly what financial position you are in. Very dishonest.

swishy87

We part exchanged with David Wilson last year and it really was great. But, they also offered us MoveMaker where they just help you sell it, which is why I wondered if it could be something like that.

henrygregory

swishy87 wrote: »

We part exchanged with David Wilson last year and it really was great. But, they also offered us MoveMaker where they just help you sell it, which is why I wondered if it could be something like that.

Interesting, thanks for that. Have not heard of MoveMaker. Will check it out now.