Part Exchange- negotiations possible?

lornaliz123

Hi there, 
Has anyone gone through a part exchange process with a new build? We've just put down a deposit for the part exchange today and I was wondering if anyone has managed to negotiate a better deal with the developer paying stamp duty, flooring etc? Thanks!

dimbo61

This all depends on how keen the developer is to sell houses ?
How fast are the properties on the development selling.
Have you tried to sell your existing property yourself via an estate agents ?
How much is your property worth ? How much is the new property?
Of course you can and should try to negotiate

lornaliz123

It's a fairly new development so I think they're pretty keen to get plots sold. The one we'd be buying is due to be finished in May/June this year. We haven't tried to sell ourselves, we have 2 very young kids and we're very attracted to part exchange due to ease of moving. Our property is worth around £150k and the new property is marketed at £265k

sst1234

Part exchange is a money loser. Don’t do it. Sell privately at lower than market value and you’ll still get more in the same amount of time. 

As for whether the developer will discount the house, not if they are part exchanging. They are already taking your property off your hands. Also if it’s a new development, they will wait see what the market does, unusual for developers to start discounting new builds until they are on the market for a few months without sale.

davidmcn

sst1234 said:

Part exchange is a money loser. Don’t do it. Sell privately at lower than market value and you’ll still get more in the same amount of time. 

Sell in the standard fashion and you'll have the problem of juggling the completion date with the short notice you'll get from the developer of completion for the new house - most buyers won't be prepared to go along with that (certainly doesn't work if there's a chain), so you'd then have the additional hassle/cost of moving out somewhere else inbetween selling and buying. Which is one of the main advantages of part exchanging instead.

lornaliz123

We have two young children so really don't want to move twice if we can avoid it! They've come back to us today with an offer of 147.5k but we really need 150k for the mortgage. Any top tips for negotiating? Thanks

isplumm

sst1234 said:

Part exchange is a money loser. Don’t do it. Sell privately at lower than market value and you’ll still get more in the same amount of time. 

Not sure I would agree - we part exchanged - same as our friends - we got about £2.5k less than they sold it for - but we would have to pay that to sell & we didn't need to worry about the hassle of having to sell quickly - they managed it all. Of course the price needs to be right, so the OP should really look at what else is out there & get an estate agent to value it.
Mark

RelievedSheff

We part exchanged last year against a new build and got a really very good deal.

We got a fair price for our old house and got the stamp duty paid, £10k deposit contribution,  legal fees paid,  free flooring throughout and moving costs contribution. 

But this was on a house that was complete and ready to move into. They were keen to get the house off their books and we pushed hard for the deal.

Part exchange meant we were in our house in under four weeks from reservation of the plot.

Sammyd159

Negotiating depends on how much they need you to buy the plot.  they will have a dealing margin built into the plot price, but the amount it costs them to PX will have to come out of that margin.  If you don't ask you don't get. Just tell them you need the 150k or you need it off the house price.  They might make you speak to their recommended IFA so they know you aren't pulling the wool over their eyes.

pinkteapot

lornaliz123 said:

We have two young children so really don't want to move twice if we can avoid it! They've come back to us today with an offer of 147.5k but we really need 150k for the mortgage. Any top tips for negotiating? Thanks

"We need £150k or we can't do it."

They're professional salespeople, not emotional individual vendors/buyers. Say it like it is. 

bucksbloke

You'd probably save that between now and completion, by all means try, but don't chuck the baby out with the bath water! It might be easier for them to give you appliances or products than more cash.