Persimmon - Part Exchange

Oliver_587

We are looking at part exchanging a house we bought 2 years ago off Persimmon for £197,000 for a Part Exchanged (PE) house Persimmon have listed as £259,995.
The PE house has been listed for about 4 months now and when we asked for a valuation for our house yesterday Persimmon offered us £195,000.
We were going to ask Persimmon to either give us £5,000 more for ours or knock £5,000 off the PE house but have since found that even that would be unrealistic for our budget.
Went for broke this morning and asked Persimmon to drop £5,000 off the PE house, give us £5,000 more for ours and help with our fees.
Not sure we are going to get where we need to be but worth asking.
Thoughts ?
 

Cakeguts

You have only owned the new Persimmon house for 2 years. New houses drop in value as soon as you live in them and some more than others it depends on the area and the builder.   I would think that the offer you have from Persimmon is an extremely good one for a non new house.

foxy-stoat

What has similar properties on your estate sold for recently?

If your numbers are that tight you may find that your lender will reduce the amount they are willing to lend to you if they offer more cash incentives.

If chopping is out of your budget you may have to sell on the open market to get more money.

sharhar

Hi, I got my stamp duty paid by the builder on a PE house. I think you did the right thing. Just have to wait for them. The market is very slow at the moment and I think they will definitely say OK. But one thing I would suggest will be to clear on what you ask. You meant you asked for help with fees. Say the exact terms like I want legal fees fully paid or stamp duty fully paid etc. Do not assume anything. Fingers crossed you should get it.

davidw123

Cakeguts said:

You have only owned the new Persimmon house for 2 years. New houses drop in value as soon as you live in them and some more than others it depends on the area and the builder.   I would think that the offer you have from Persimmon is an extremely good one for a non new house.

This isn't true... The stigma of new builds dropping in value isn't correct at all. As a owner of a new build, and user of the help to buy scheme where I and friends of mine have had their new builds valued by a RICS to staircase and pay this off via a remortgage, they haven't dropped in price.

If this was the case, everyone who could, would use the help to buy, and remortgage ASAP as you pay the back the percentage valuation amount and the government would be bleeding money, rather then the initial cost of lending.

An exchange is usually with a reduced offer on what you could get for your own home, purely due to the convenience. I would put it onto the market.

RelievedSheff

davidw123 said:

Cakeguts said:

You have only owned the new Persimmon house for 2 years. New houses drop in value as soon as you live in them and some more than others it depends on the area and the builder.   I would think that the offer you have from Persimmon is an extremely good one for a non new house.

This isn't true... The stigma of new builds dropping in value isn't correct at all. As a owner of a new build, and user of the help to buy scheme where I and friends of mine have had their new builds valued by a RICS to staircase and pay this off via a remortgage, they haven't dropped in price.

If this was the case, everyone who could, would use the help to buy, and remortgage ASAP as you pay the back the percentage valuation amount and the government would be bleeding money, rather then the initial cost of lending.

An exchange is usually with a reduced offer on what you could get for your own home, purely due to the convenience. I would put it onto the market.

I agree with the first part of your response and say that new builds do not always lose value straight away. We bought new build last year and two properties on the estate have already resold, both of which resold for more than the initial purchase price. No doubt this has been partly helped by the developers now selling the later phase new builds for an increased price.

We part exchanged against our new build and got a really very good deal. we were offered 10% under market value for our old property but the difference was more than made up by other incentives such as part exchange, £10k deposit contribution, stamp duty paid, legal fees paid and moving costs contribution.

Oliver_587

They have come back to us, they will knock £5,000 off the PE house but won't budge (£195,000) on our house.  Thinking of asking them to pay our stamp duty and solicitors fees and see what they say.  If they just cover the stamp duty that will help.

Oliver_587

Also, they want us to use their (Persimmon) solicitors, is this normal ?

Cakeguts

davidw123 said:

Cakeguts said:

You have only owned the new Persimmon house for 2 years. New houses drop in value as soon as you live in them and some more than others it depends on the area and the builder.   I would think that the offer you have from Persimmon is an extremely good one for a non new house.

This isn't true... The stigma of new builds dropping in value isn't correct at all. As a owner of a new build, and user of the help to buy scheme where I and friends of mine have had their new builds valued by a RICS to staircase and pay this off via a remortgage, they haven't dropped in price.

If this was the case, everyone who could, would use the help to buy, and remortgage ASAP as you pay the back the percentage valuation amount and the government would be bleeding money, rather then the initial cost of lending.

An exchange is usually with a reduced offer on what you could get for your own home, purely due to the convenience. I would put it onto the market.

Wait until you try to sell it then you will find out.

RelievedSheff

Cakeguts said:

davidw123 said:

Cakeguts said:

You have only owned the new Persimmon house for 2 years. New houses drop in value as soon as you live in them and some more than others it depends on the area and the builder.   I would think that the offer you have from Persimmon is an extremely good one for a non new house.

This isn't true... The stigma of new builds dropping in value isn't correct at all. As a owner of a new build, and user of the help to buy scheme where I and friends of mine have had their new builds valued by a RICS to staircase and pay this off via a remortgage, they haven't dropped in price.

If this was the case, everyone who could, would use the help to buy, and remortgage ASAP as you pay the back the percentage valuation amount and the government would be bleeding money, rather then the initial cost of lending.

An exchange is usually with a reduced offer on what you could get for your own home, purely due to the convenience. I would put it onto the market.

Wait until you try to sell it then you will find out.

From the two resales on our estate so far certainly where we are it doesn't look like they are dropping in value!

DCFC79

Oliver_587 said:

Also, they want us to use their (Persimmon) solicitors, is this normal ?

Are they insisting or trying top push you towards using them ?

Have you asked about costs ?

Maybe ring a few local solicitors and ask for some quotes for the same work, easier to get a breakdown from Persimmon then you can compare.