Part Exchange advise needed

ThreeGoldenSpires

Hi All,
I find myself in a confusing situation, and could do with some advise...

I am in the process of part exchanging my house valued at 275k by an AE (offered 255k by David Wilson Homes) for a property selling for 500k
While going through the part ex process I was very surprised that they offered such a low amount but thought it was our best way to secure the house on the new estate. (They have sold 15plots before the show home was even ready).
We have reserved the 500k house based on the deal above and in addition dwh will pay 50% stamp duty and will pay the moving fees on the new property. So while it was a low number there were some incentives.
My property hit rightmove last week for 260k and sold within a day for over the 260k it was put up for by dwh. The two people who viewed on day 1 ended up in a bidding war. At this point I dont know how much over it sold for.
My question to the forum is this. Based on the fact that the new property is not ready for another 6 weeks and that mine is now sold what if any negotiating point can I use for them to now offer me more than the 255k? I feel there must be some wiggle room on at least sharing the additional money they made over the 260k?
Any advise, thought greatly appreciated.

Thanks

davidmcn

What stage are you at contractually? If the PX house has already been marketed I'd have assumed you exchanged a while ago, in which case the time for negotiation has long since gone.

ThreeGoldenSpires

Hi,

Thanks for getting in contact. There is a reservation document signed stating the intention to part exchange and the conditions. However the planned exchange date is the 6th May and completion date is planned for 6th of June.

chunkytfg

What does that reservation document say about fees when walking away?

If you can walk away relatively cheaply then i'd assume you have some pretty good bargaining chips.

What have DWH offered you above the normal stated offers? Is the half Stamp duty a normal offer for example or are they going to be offsetting that expense against the extra profit in your old house?

ThreeGoldenSpires

Thanks for your advise
Fees would be just the reservation fee so not too bad.

Nothing has been offered above the 50% stamp duty and legal fees on the purchase.

Thanks

chunkytfg

ThreeGoldenSpires wrote: »

Thanks for your advise
Fees would be just the reservation fee so not too bad.

Nothing has been offered above the 50% stamp duty and legal fees on the purchase.

Thanks

No when I said 'normal stated offers' I meant if you walked in with nothing to part ex and ready to buy what offers would you get? Would you still get the 50% stamp duty etc?

If things like the 50% stamp duty are not usually offered then DXH will be using your house profit to offset that. If they normally offer that deal then your in a much better position to negotiate. I would doubt you'd be getting extra money though. More likely to be upgrades to the house.

AnotherJoe

I feel there must be some wiggle room on at least sharing the additional money they made over the 260k?

That would be a one way bet you are asking for. Or to put it another way you want to have your cake and eat it.
They took a chance by giving you a PEX price that wasn't too bad, maybe 2 or 3 % down and you got a guaranteed deal and zero hassle, and now you want to renege on that. And most likely you can't because I presume the exchange has happened on your house sale even if not on the purchase?

Yellow_mango

50% of the stamp duty on a £500k house, plus legal fees, will be more than the extra £5k consideration for the house. Plus no chain no hassle sale.

Sounds like you got a pretty good deal there.