New home - old home part ex

lexie55_2

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We did part exchange offered £5k less. On new build we had carpets throughout, garden turfed, stamp duty paid PLUS given £2000 to spend on extras i.e. lighting, curtains, blinds, etc., It took them 6 months to sell our old house. We did not want the hassle plus we had one week from exchanging to moving out, so was done at our leisure.

SquatNow

Offering you Part-Ex for your house at "Market Value" is just another form of hidden discount. Your houses "market value" maybe £200k, but the EAs know that's BS and the builders know it's BS. They both know the true value in the collapsing market is £150k. Luckilly they've overpriced the crappy new-build rabbit hutch they are selling you by £70k so they can afford to take the hit.

They rely on the fact that you are desperate to move. They did this in the last crash targeting new families and couples about to have kids who desperately needed a bigger house. They know that you are desperate to move and can't sell your current place because the @rse just dropped out of the market, so it makes it seem like a great offer.

They'll usually throw in stamp duty, solicitors fees and removal costs too.

The general result is they sell a new build at a big profit and take a smaller loss on the P/X, andyou get left with a crap load of negative equity as the house is worth £70k less then you paid for it the day you move in.

Odds on you'll end up handing the keys back and moving back in with your parents within 2 years, and you'll be left with the N/E for 5 years, until the bank, if you're lucky, write it off.

It's a last, desperate attempt by housebuilders to shift their overstock. The next move is pure discounts... 30% off signs.



Can I add that this isn't speculation, anyone over 35 will remember this ver vivedly from last time.

richie_greenuk

Thanks squatnow - really fills us with confidence