Home Change Schems

Sibz

Hi guys,

Looking for a bit of advice...
Considering buying a new build house and the builders are doing home change plans... (not part exchange) where they market and sell my current property, taking care of EA fees etc...

My FA has suggested I don't use this sort of scheme...
Has anyone here got experience of using these? Or can anyone list the potential pitfalls (costs) of this?
They all say I maintain final say on the acceptance of offers etc. Property in my locations tends to sell well as its a nice street/area. But I'm not sure how much more I would be likely to get simply buy selling it myself...

Davesnave

Sibz wrote: »

My FA has suggested I don't use this sort of scheme...

It might be helpful to say why!


Off the top of my head, I think that the builders probably aren't part-time philanthropists, or even closet estate agents, so they will be paying someone else to do the flogging of the house and expecting not to make a loss on the deal.


All the above adds up to a good chance you'll see less £££. Your final sentence suggests you already recognise that.


What's in it for you? Are the builders going to wait till you're gone before marketing an empty house? If not, what's the advantage?

eddddy

I guess the benefit is that the developer pays the EA fees.

The downside is the 'conflict of interest', and loss of control by you.

The 'conflict of interest' being that you want a reasonable price for your current house, but the developer just wants a quick sale (and won't be too bothered about the price).

• The developer will tell you that they agree the asking price with you, and let you decide on any offers...

• ... but they will push you hard to set the asking price low and to accept any low offer, to get a quick sale.

Plus they will be choosing and instructing the EA. You might not like the EA they choose.

foxy-stoat

The developer wont be funding the Estate Agent fees, the OP will they just dont know it.

Get your own Estate Agent, they need to work for you not the person you are buying off. That is how it has worked for many years.

eddddy

foxy-stoat wrote: »

The developer wont be funding the Estate Agent fees, the OP will they just dont know it.

Cryptic statements like that aren't very helpful to the OP. Can you explain it?

For example, are you suggesting that the OP could negotiate a lower price for the house they're buying, if they don't use the "Home Change Scheme"?


If so, that may not be the case. Developers often prefer to give incentives ('freebies') rather than reduce selling prices. It makes their Land Reg Selling Price data look better.

getmore4less

Bottom line is costs to change.

1. work out what your place is worth and what you could reasonably expect to net from selling yourself after costs.

2. Work out what the new place should costs including normal fees etc.



You offer the developer 2-1-(any cost you pay not included)
The more they get for your place the more they get for theirs.