Persimmon - Part Exchange

davidw123

RelievedSheff said:

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!

Weve had a sale on our estate also, and again this was also increased in price...

Not a rant but more to clarify the situation....I got £13,000 knocked off my new build, and then a further £3000.00 in cashback for our own appliances, free flooring, fencing, garden dug up and redone to prevent any " boggyness" and it comes with the standard barratts guarantees etc. (2 year fixture, 10 year NHBC)

The price of my house type has already increased by £5000,00 in the next phase, and I would struggle very much to get a property of this size and in this area for the price I paid.. i definitely wouldn't struggle to sell and I think the situation with new builds has changed over the years and it very much depends on the style of house and builder you go for..

PJBRFC

We have just sold a house we bought brand new 5 years ago. Made £30,000 over those 5 years. They are still building further around the estate which I think helps as brand new our 'model' of house is now £65,000 more than we paid for it. 

Oliver_587

So, another response from Persimmon.

The very best we can do is £195,000 for their property (reasons explained before with semi’s selling for more) 

We will agree to sell PE for £257,000 and pay for the legal fees if they use our panel (they will still have to pay for disbursements same as our January incentive we did, meaning they would be paying for the stamp duty not us)

This is a the very best we can do on this, otherwise they will have to go and sell themselves and come back to us sold

This does seem a worse deal as they are only knocking off £3,000 off the PE instead of £5,000.  Are the legal costs on a Part Exchange really more than £2,000 ?, especially if Persimmon are using their own legal team.

 

Oliver_587

We have decided to sell the house ourselves as we think we will get at least 200k and hopefully nearer 210k.
Thanks for all your comments, they were very helpful.

Cakeguts

PJBRFC said:

We have just sold a house we bought brand new 5 years ago. Made £30,000 over those 5 years. They are still building further around the estate which I think helps as brand new our 'model' of house is now £65,000 more than we paid for it. 

This is probably the case but the chances are that if you hadn't bought new it would have increased by more than £30,000 in those 5 years so in effect you have still made a loss against the housing price rises in your area. 

PJBRFC

Cakeguts said:

PJBRFC said:

We have just sold a house we bought brand new 5 years ago. Made £30,000 over those 5 years. They are still building further around the estate which I think helps as brand new our 'model' of house is now £65,000 more than we paid for it. 

This is probably the case but the chances are that if you hadn't bought new it would have increased by more than £30,000 in those 5 years so in effect you have still made a loss against the housing price rises in your area. 

Absolutely. Wouldn't buy new again.

Millsy79

If you are Part Exchanging with Persimmons Homes one piece of advice I would give you is to demand that Persimmons carry out the Homebuyers Survey simultaneously with the Estate agents valuations before you pay any Reservation fee or sign the part exchange contact. If you read our experience as below all will come clear:

My wife and I signed up to a home buyers part exchange scheme with Persimmon Homes in September 2019. The agreement was for us to exchange our house for an agreed sum and buy a house from Persimmons for an agreed sum.

We had valuations carried out by local estate agents as the first steps and were given a Buyer’s Exchange of Contracts Checklist to work through. We began by applying for a mortgage with their recommended mortgage brokers, instructed their recommend conveyancing solicitors and paid a £300 commitment fee, arranged and paid for gas and electricity reports.

All was going well until we had The Home Buyers Survey carried out in November. After the surveyor carried out the survey, he informed me that there were some minor issues but wouldn’t go into specifics. I phoned Persimmon several times after the survey and emailed the sales office to get the results from it. 2 weeks past and we assumed that the Survey had passed then in mid November I received a phone call from Persimmons to say that issues had been found and they wanted 2 further surveys; Wood and Timber and Structural Survey. Both surveys found embellished issues with the house and subsequently Persimmon homes would not honour the part exchange.

Section 2 of the part exchange contact we signed stipulated that if defects were found on the house we were selling we would be given the option to rectify these at our own costs, which we agreed to do but Persimmons were not interested when we approached them about this.

We were eventually refunded £250 from the £500 reservation fee in February 2020 after many phone calls, however we believe that we should have been refunded the remaining £250 as we had the reservation cancelled on us by Persimmons opposed to us changing our minds and cancelling on our own free will. We also paid for the optional extra of an outside tap on the new build that cost us £95 and the £600 we paid to Ison Harrison Solicitors for the conveyancing. All in all Persimmons have left us £945 out of pocket.

We requested a full refund for all our costs incurred as the reasons for Persimmons cancelling were beyond our control but Persimmons refused saying they had the right to pull out and are not under any obligation to refund us. Basically, Persimmons has acted like an unscrupulous private seller in doing this.

We were out of pocket for simply following the instructions given to us Buyer’s Exchange of Contracts Checklist and we did everything in the order the form that was given to us when we signed the contract.

The whole process of the part exchange caused us a great deal of stress and anxiety. It wasn’t as it was sold to us in the showroom as an easy stress-free process I the showroom. In fact it was nightmare from start to finish and we were given lots of misleading information.
In our opinion If the house, we were selling was going to be potentially such an issue for Persimmons they should have had the survey carried out at the same time as the estate agents valuation to save us from this hassle and wasting our money and not so far into the process as per my opening paragraph.

Anyone part exchanging needs to consider potential issues you may have along the way as from our experience you will be offered no support. They even wanted us to pay for the 2 additional surveys out of our own pocket but we refused. If Persimmons can find an excuse to pull out they will do. For example if not the survey it could be the electrical report etc. The part exchange contract is not worth the paper it is written on as the final section states that Persimmons have the right cancel or withdraw from the scheme at anytime as per the final term in the contract.

There is no law that can compel Persimmons to refund you your money if they decide to pull out as home buying and selling are not covered by general consumer law and Persimmons take full advantage of the lack of protection. If for example you book a holiday and the holiday firm cancels then you quite rightly expect a full refund and the travel firm is breaching consumer law if it refuses. Home buyers from large multinational house builders should be offered this same protection.

If after reading this you still decide you want to part exchange with them ask the person in the showroom what will happen if things go wrong and use my experience as a hypothetical example. Ask them if you will get your fees back, ask them if they will carry out the Homebuyers survey as the first step rather than towards the end and if not why not? Don’t let them rip you off like they ripped us off.

rik111

Nice essay but you are replying to a post that is 3 months old 🙄