Selling House Over Market Value

numbercruncher8

I suppose if you can trust the builder, why not. From their point of view it is not much different from offering a c.10% discount on the property. I've seen bigger discounts around at the moment. And maybe they can see a way to add value to your present house to make it worth it. 
In these situations someone unscrupulous might lead someone all the way down the garden path and reduce the price right at the end.

Freecall

It could be the case that the OP's current house is worth more to the builder than the open market price to consumers (eg. knock it down and build 2 new ones or simply replacing kitchen/bathroom/roof or whatever and making a profit).

Some houses are difficult to shift by selling on to consumers and yet still have underlying value.

Just a thought.

Crashy_Time

Ozzuk said:

I would suggest a little caution - make sure you get a solid valuation on the one you are buying as you don't want to compound your negative equity problem (i.e. 40k from old house becomes 60k on new house).  

Good advice, the OP needs to tread very carefully here.