New home - old home part ex

richie_greenuk

Hello

I am looking for advice and experiences - we have purchased a new home which will be ready in the next four weeks and the builders have agreed to part ex ours. We have had it on the market but no luck as it is very slow at present.

So, has anybody part exchanged befor and what sort of price is normally offered? I assume it is below the market value?

Any advice would be much appreciated.

Rich

martinbuckley

I P/X'd a house during the last property downturn in the 90s. I got 32K for it against a 52K property. I had bought the initial property for 39K 3 yrs previously. Whilst disappointed, I avoided all agents fees etc, and then got £500 back from the builders, as an employee of theirs bought it - my fee was for showing them round it!

These days, with EA fees well over £2500, accepting an offer a few thousand less than the asking price may well save you money in the long run.

IHateDida

We were going to go through with p/ex - house was valued by 2 estate agents at £xk, house builder was prepared to give us £xk - apparently an 8 week selling price. But we managed to sell it for full asking price before we signed the p/ex form, meaning that even after EA fees, we still were about £2.5k better off! They will usually send round 2 estate agents and base their price a little below what they value your house at.

However, the builder might not be quite so flexible on their asking price if you p/ex - as basically your house is a cost to them in having to sell it! See what you can get the house for without mentioning p/ex, then bring it in to the conversation, then you will know!

Running_Horse

We asked about this a year or so back were told we would not get any of the other incentives, carpets etc. No doubt we will see more people doing this in the near future, so expect builders to get tougher with terms and conditions.

SkylineDriver

We have just bought a new house and are doing a p/x with our house. We have been given £5k less than what we would have got if we sold it ourselves but the builders have knocked £20k off the house we are buying, fully fitted kitchen, carpets throughout and turf to front and rear. We have got a really good deal and I am really happy with it. Goodluck :beer:

terrierlady

some builders do an easy mover scheme same as p.x but you get two bites to the cherry, you accept a top price and a low price on your home, this means you have 4 weeks on the market at the top price and if the property is still unsold the developers buy it in at the lower price, it gives you the chance to try and achieve the best price, the developer picks up the estate agents fees a win/win for all ,most people believe their homes are worth more than they are, a spell on the market will show the true value.

hex2

I did a part ex with a mid range house builder who did no other discounts or deals at all - average of 3 valuations based on a quick sale, got more than I expected, and they put it on the market at exactly what they gave me. They sold it in 8 weeks for less than they gave me, plus they took the hit for the EA fees. I also got to choose which 3 estate agents from a list of 5.

Certainly worth asking about if there is no up front financial commitment for you.

SkylineDriver

hex2 wrote: »

I did a part ex with a mid range house builder who did no other discounts or deals at all - average of 3 valuations based on a quick sale, got more than I expected, and they put it on the market at exactly what they gave me. They sold it in 8 weeks for less than they gave me, plus they took the hit for the EA fees. I also got to choose which 3 estate agents from a list of 5.

Certainly worth asking about if there is no up front financial commitment for you.

Same here, they bought my house off me for £99,000 and have put it one the market for £99,950 so to be honest they will probably end up getting the same amount they bought it off me from or maybe slightly less so I am well chuffed with what they gave me.

richie_greenuk

We have an update on our above thread.
I have just had an offer from the builders today of £105k - £10k below our price for which we currently have the house on the market. Before we did this, we had two valuations and the fist valued it at £115k-£120k and the other said £110k-£115k.
The home we are buying is built and we can move very quickly as we have a mortgage in place and I know the builders are having problems selling. They have said the year end is in December so they want to get as many sold before this time.
We can easily walk away as we have signed nothing, paid only £99 and arent desperate to sell, so am planning on having a chat and outlining this. Do you think the builders are being fair?

IHateDida

Are they offering any other incentives? We were still offered the same price for the house we wanted even if we part exchanged - it was on the market for £x- we got it for £x plus a few other 'incentives'. So the question is, are they offering you anything else? If they're not, and you're not desperate to sell - then walk away! They will come back to you if they are desperate! I would also state that you know the norm and that is to offer based on the average of 3 valuations.

richie_greenuk

They have offered carpets and thats it. We are tempted to walk away - going to speak with them tomorrow and give them till the end of the week to come up with something to entice us.