Buying a New Build with Bellway Homes & When to Sell My House

RobLT

I am waiting for a plot to be released hopefully around October.  Can somebody who has purchased a new home explain the process to me about selling my existing house.  I keep reading that the developer likes an exchange on the new build within 28 days?  How does this effect the sale of mine?  Obviously can't expect a prospective purchaser to exchange on my house so presuming it would be just for the new home.  If I am reliant on the deposit at exchange coming from my sale proceeds etc. how would it work.  Would I have to try and raise the deposit elsewhere?  I am considering part-exchange and I know will receive less for my property but thinking this might be an easier option.  My house has been valued by a local agent to get an idea at around £315K marketing price.  Wondering how much less the developers are likely to offer. If we were to sell our own property when would be the best time - nearer the new build being ready or asking purchasers to wait until things are ready our side?  Anybody been in the same position. I would much appreciate any feedback. 

bucksbloke

If you are a dependent buyer, they won't let you reserve unless your house is SSTC. 
Part exchange could be an option, but I would expect them to lowball you on the price in the current market. 

eidand

I think you need to do more than check with one agent. Do your own research of the market in your area, invite at least 3 separate EAs and then you will have a better idea of what your property is really worth. 315k could be a number pulled out of their bottom, to try and win the business.

RobLT

eidand said:

I think you need to do more than check with one agent. Do your own research of the market in your area, invite at least 3 separate EAs and then you will have a better idea of what your property is really worth. 315k could be a number pulled out of their bottom, to try and win the business.

Yes we are going to get another couple of valuations but i think that is about right at the moment as another 2 houses in the next road have gone for 310k it was more about when to put ours on the market and hope to get a lot more than what a part ex from the developer would be or even if they did give us a less than favourable valuation whether we could negotiate with them to get it up a bit.Just seems a lot less hassle doing it this way and i suppose it is easier for the developer as well?

Slithery

RobLT said:
and i suppose it is easier for the developer as well?

Nope. It's easier for the developer to sell to someone who doesn't need to part exchange.

MidnightWolf

It's still worth asking Bellway about the part exchange and seeing what they will offer, although it's unlikely they'll do this until the plot you want is released and there may be someone else in a proceedable position with their eye on the same plot. If there isn't much other interest, you may be surprised by their part exchange offer.

We part-exchanged with Bellway last year. Our house was on the market for £250k with the hope of getting around £240k. We'd had one low-ball offer of £215k which we'd rejected. Bellway offered us £235k which we took and they also paid the stamp duty of over £10k on the new house amongst other incetives. They ended up selling our old house (to the same guy who'd offered us £215k) for £225k. There was subsequently other interest in our plot after we'd reserved it, including from the couple who bought the house next door, as it's probably the best plot on the development with an open aspect to one side and not overlooked.

mojo293

Just been looking for similar questions and found this, and thought I'd jump on instead of starting a simialr thread.

I am about to put my house on the market (EA instructed, EPC paid for and underway), but it wont go to market till 11th April. Have had 4 agents out and all are confident of achieveing 'offers above £180,000', and potentially a quick sale (based on other recent sales in the street).

I have my eye on a Bellway new build (priced around £230,000), with the house finished (not off plan) and the plot about to be released. But was also unsure about the process and whats feasible when buying a new build. I was planning on putting £100,000 - 110,000 deposit (based on new mortgage / affordability), but that deposit will only come from the proceedes of my sale, I don't have it saved/to hand.

Apart from part-exchange, do developers always need the deposit up front to reserve a house, or do I just need to have an accepted offer with proceedable buyers and a property status of 'SSTC'?

Just need an idea if a new build is a no-go unless I had the funds readily available, which may ultimately mean I go for a non-new build, or rent after mine is sold until a suitable new-build is available?

Cheers for any advice offered.

RandomGuy87

mojo293 said:

Just been looking for similar questions and found this, and thought I'd jump on instead of starting a simialr thread.

I am about to put my house on the market (EA instructed, EPC paid for and underway), but it wont go to market till 11th April. Have had 4 agents out and all are confident of achieveing 'offers above £180,000', and potentially a quick sale (based on other recent sales in the street).

I have my eye on a Bellway new build (priced around £230,000), with the house finished (not off plan) and the plot about to be released. But was also unsure about the process and whats feasible when buying a new build. I was planning on putting £100,000 - 110,000 deposit (based on new mortgage / affordability), but that deposit will only come from the proceedes of my sale, I don't have it saved/to hand.

Apart from part-exchange, do developers always need the deposit up front to reserve a house, or do I just need to have an accepted offer with proceedable buyers and a property status of 'SSTC'?

Just need an idea if a new build is a no-go unless I had the funds readily available, which may ultimately mean I go for a non-new build, or rent after mine is sold until a suitable new-build is available?

Cheers for any advice offered.

I'm a FTB so I can't advise regarding your sale but I am buying a new build with Bellway.

We were given an exchange deadline of last week which has passed and we haven't exchanged yet. We are making progress so they seem to be happy with that but do want to progress to exchange as soon as possible.

When we were looking to reserve, I asked about other potential buyers getting the plot we wanted and they advised that we were ideal buyers being FTB as anyone with a house to sell, would need to have sold/exchanged their house before they could reserve a plot.

Bellway will want a £1,000 reservation fee so you will only need to pay this with the rest of the deposit paid on exchange.

TheJP

RobLT said:

I am waiting for a plot to be released hopefully around October.  Can somebody who has purchased a new home explain the process to me about selling my existing house.  I keep reading that the developer likes an exchange on the new build within 28 days?  How does this effect the sale of mine?  Obviously can't expect a prospective purchaser to exchange on my house so presuming it would be just for the new home.  If I am reliant on the deposit at exchange coming from my sale proceeds etc. how would it work.  Would I have to try and raise the deposit elsewhere?  I am considering part-exchange and I know will receive less for my property but thinking this might be an easier option.  My house has been valued by a local agent to get an idea at around £315K marketing price.  Wondering how much less the developers are likely to offer. If we were to sell our own property when would be the best time - nearer the new build being ready or asking purchasers to wait until things are ready our side?  Anybody been in the same position. I would much appreciate any feedback. 

The house i bought was a part ex, the developers paid £320k and marketed it at £360k and i bought it for £347k. They will likely go anywhere between £30-50k lower than your valuation.

TheJP

mojo293 said:

Just been looking for similar questions and found this, and thought I'd jump on instead of starting a simialr thread.

I am about to put my house on the market (EA instructed, EPC paid for and underway), but it wont go to market till 11th April. Have had 4 agents out and all are confident of achieveing 'offers above £180,000', and potentially a quick sale (based on other recent sales in the street).

I have my eye on a Bellway new build (priced around £230,000), with the house finished (not off plan) and the plot about to be released. But was also unsure about the process and whats feasible when buying a new build. I was planning on putting £100,000 - 110,000 deposit (based on new mortgage / affordability), but that deposit will only come from the proceedes of my sale, I don't have it saved/to hand.

Apart from part-exchange, do developers always need the deposit up front to reserve a house, or do I just need to have an accepted offer with proceedable buyers and a property status of 'SSTC'?

Just need an idea if a new build is a no-go unless I had the funds readily available, which may ultimately mean I go for a non-new build, or rent after mine is sold until a suitable new-build is available?

Cheers for any advice offered.

The proceeds from your sale wouldn't be a deposit it would be paying the reminder + mortgage of the outstanding balance after you pay the deposit. The developers may want 10% at time of exchange that may be months before you complete the sale of the house you are selling.

mojo293

Cheers for the replies.

I guess what I was aiming for was having an offer accepted on mine and it being SSTC, and then a developer accepting a 'Reservation fee' rather than a deposit. Someone at work managed to do that with Barratts.

Next step is basically I need to speak to the Developer (initially Bellway) and see what the options are. Some may be out of the picture, but some may offer the options I need, if they have appropriate propreties.

Thing is, the way the house market is, they probably don't need to do buyer like me a favour with added complications/potential delays, as there'll be another with the cash at hand or a FTB along straight after.