Part exchange

T1T2T3T4

Has anyone done this themselves or come across part exchanging a house for another property? When you part exchange your property do you normally get a good price for your property? A price that you'd get by selling it like normal? Or do you get a reduced price? 

user1977

Assuming you mean from a builder, anecdotally, the valuations tend to be reasonable. Their profit is on the (often inflated) price they're charging you for the new property, they're not aiming to also make a profit on the resale of the part-exchanged property.

T1T2T3T4

user1977 said:

Assuming you mean from a builder, anecdotally, the valuations tend to be reasonable. Their profit is on the (often inflated) price they're charging you for the new property, they're not aiming to also make a profit on the resale of the part-exchanged property.

Hi. Yes from a builder. So they would give you what the house is worth/what you might get on the normal market? And make their money more by overcharging on their property?

tinytiddles

We part exchanged our house for a new build last year, and would definitely do it again. It was the easiest move ever! In terms of price, they will offer you slightly under market value - we “lost” around £3k off what I would have accepted if selling the usual way but I had no agency fees, EPC etc to pay for so actually it all balanced itself out. The home we bought was stood unsold and empty for 6 months due to Covid so we were in a good position to push the developer a bit and get what we wanted. 

user1977

T1T2T3T4 said:

user1977 said:

Assuming you mean from a builder, anecdotally, the valuations tend to be reasonable. Their profit is on the (often inflated) price they're charging you for the new property, they're not aiming to also make a profit on the resale of the part-exchanged property.

Hi. Yes from a builder. So they would give you what the house is worth/what you might get on the normal market? And make their money more by overcharging on their property?

That's pretty much what I said, yes.

Though why are you asking? Your other threads suggest you're a FTB. 

T1T2T3T4

tinytiddles said:

We part exchanged our house for a new build last year, and would definitely do it again. It was the easiest move ever! In terms of price, they will offer you slightly under market value - we “lost” around £3k off what I would have accepted if selling the usual way but I had no agency fees, EPC etc to pay for so actually it all balanced itself out. The home we bought was stood unsold and empty for 6 months due to Covid so we were in a good position to push the developer a bit and get what we wanted. 

Ah so it wasn't too far off the market price then 

alipops1986

We part exchanged in June, best decision we ever made. 
We'd already decided the figure we wanted for our then house; the developer got 3 valuations, and we got the figure we wanted. They actually only put it for sale for £5k more than we got, so likely would have had to negotiate on that asking price anyway. It did in the end sell in about 8/9 weeks, but we had already been moved 2/3 weeks by that point!
We purchased a show home that was ready and waiting, so we moved in 6 weeks. It was brilliant as we knew it would go ahead, but also very quick turnaround to get organised, we managed to beat the stamp duty deadline as well so saved well over £10k on that plus negotiated on the purchase price of our show home. 

[Deleted User]

I wish I’d done it this time!
we part ex last time and it went a dream
where as this selling separate is turning into a waking nightmare

T1T2T3T4

DeletedUser said:

I wish I’d done it this time!
we part ex last time and it went a dream
where as this selling separate is turning into a waking nightmare

Last time you did it, did you get a price similar to what you would have got if you would have sold it on the market? 

T1T2T3T4

user1977 said:

T1T2T3T4 said:

user1977 said:

Assuming you mean from a builder, anecdotally, the valuations tend to be reasonable. Their profit is on the (often inflated) price they're charging you for the new property, they're not aiming to also make a profit on the resale of the part-exchanged property.

Hi. Yes from a builder. So they would give you what the house is worth/what you might get on the normal market? And make their money more by overcharging on their property?

That's pretty much what I said, yes.

Though why are you asking? Your other threads suggest you're a FTB. 

The house we're interested in is a part exchange. 

tinytiddles

Just a word of caution - if you’re buying a home subject to a part exchange with the developer, make sure you find out where they are timescales wise with the build - you could be waiting months to even exchange contracts as they will only agree a completion date once they have agreed one with the person buying the new build. Bizarrely ours took longer than expected to complete because their legal people couldn’t get their act together, even though we were ready to go and the property was as well. The guy buying our previous house got quite impatient with the developer come the end.