Persimmon - Part exchange scheme - its a mystery!

Suzycoll

Hi all 

I have been keeping an eye in a new development being built with Persimmon locally.

I have had my house up for sale since March but no bites. I read on the Persimmon website about the part exchange scheme So.... I popped my head in the Persimmon sales office to enquire about it.

The salesperson spoke absolutely gobbledegook, gave me a glossy brochure and sent me on my way !! I'm  still none the wiser how the part exchange scheme works (even after reading the useless brochure).

I am normally a confident person and know how to ask question, and am perplexed why she bamboozled me! Although, most of the staff are usually rude but I'm not bothered by that per se. 

Anyone have any ideas how the part exchange scheme works please?

RelievedSheff

Can't speak for the Persimmon scheme but we part exchanged with David Wilson and it was a simple process.

They asked us some basic questions about our house to check it was eligible for the scheme and then we had to paid a refundable holding deposit. DWH then arranged for three independent valuations of our house for a price for the house to sell in 8 weeks, so not full market value. (We got 90% open market value)

Once they had the valuations they made us an offer. We were happy with it so the following weekend we had to go and sign some paperwork and hand over the rest of the reservation fee. 

From there on in it was simple. We got our mortgage offer as with any purchase and the legals were just like any other purchase and sale.

DWH marketed our house for sale straight away so we had to allow viewings while we were still living there. Thankfully that didn't go on for long. It was put on the market on a Friday morning and was under offer by the Monday morning.

There wasn't much else too it. As soon as the new house was ready we exchanged and completed on the same day and moved in.

It was 3.5 weeks from reservation to moving in for us but the house was finished and ready to go.

dander

Two things - Developers are quite choosy on which developments and which houses within those developments they'll do part-exchange on, so question 1 to ask is - are there any plots on this development where it's available?
Secondly - usually the value of the house you are part-exchanging has to be a good chunk less than the one your buying. So the next question is - if I wanted to do part exchange on X property, what's the maximum value my part exchange property could be?

chanz4

we got told at least 20 more than the px

Albermarle

They asked us some basic questions about our house to check it was eligible for the scheme and then we had to paid a refundable holding deposit. DWH then arranged for three independent valuations of our house for a price for the house to sell in 8 weeks, so not full market value. (We got 90% open market value)

So in simple terms you lost 10% of the potential value of your home, for the convenience of part exchanging it?

Presume the OP could have a similar situation, although it sounds like their property is a bit overpriced anyway, so might end up with >10% discount on part exchange.

I have had my house up for sale since March but no bites.

dander

Hopefully not going too far off topic, but there's a question here about what actually IS "open market value". I would argue that it's not a case of getting 90% of the value, or losing potential value, but you are getting a fair market value instead of an inflated price you might put a property on at before you end up reducing the price and/or selling for a low offer because the house was over-valued in the first place. 

Albermarle

dander said:

Hopefully not going too far off topic, but there's a question here about what actually IS "open market value". I would argue that it's not a case of getting 90% of the value, or losing potential value, but you are getting a fair market value instead of an inflated price you might put a property on at before you end up reducing the price and/or selling for a low offer because the house was over-valued in the first place. 

It is a good point. Normally it would be the average of what three estate agents valued it at, unless you get a professional valuer in .

LightFlare

No different to the % you would get for part-exing a car

You are "paying" for the convenience and relative simplicity of the transaction

Suzycoll

dander said:

Two things - Developers are quite choosy on which developments and which houses within those developments they'll do part-exchange on, so question 1 to ask is - are there any plots on this development where it's available?
Secondly - usually the value of the house you are part-exchanging has to be a good chunk less than the one your buying. So the next question is - if I wanted to do part exchange on X property, what's the maximum value my part exchange property could be?

thanks dander

valuable advice 

SarahB16

Suzycoll said:

Hi all 

I have been keeping an eye in a new development being built with Persimmon locally.

I have had my house up for sale since March but no bites. I read on the Persimmon website about the part exchange scheme So.... I popped my head in the Persimmon sales office to enquire about it.

The salesperson spoke absolutely gobbledegook, gave me a glossy brochure and sent me on my way !! I'm  still none the wiser how the part exchange scheme works (even after reading the useless brochure).

I am normally a confident person and know how to ask question, and am perplexed why she bamboozled me! Although, most of the staff are usually rude but I'm not bothered by that per se. 

Anyone have any ideas how the part exchange scheme works please?

Part Exchange | Persimmon Homes

I've shared a link above but the details are fairly high level. If there is anything in the link above that you don't understand please just ask us here to see if we can help. 

If you were to go for the part exchange I don't know what the penalty may be with your current estate agent for no longer using them to sell your home?  

In the link above there is no reference to an 80% cap do you know approximately how the value of your home compares to the value of the home you may be interested in?  

I have read of older people downsizing into retirement living schemes and part exchange is available so not sure if the 80% limit that we hear mentioned is just in place on some part exchange offerings?  I don't think we should think that an 80% limit is an industry standard.  

I should add that the details in the link above may not be exactly the same as what is in your brochure but please just ask away with any questions that you may have.  

Gentoo365

Albermarle said:

dander said:

Hopefully not going too far off topic, but there's a question here about what actually IS "open market value". I would argue that it's not a case of getting 90% of the value, or losing potential value, but you are getting a fair market value instead of an inflated price you might put a property on at before you end up reducing the price and/or selling for a low offer because the house was over-valued in the first place. 

It is a good point. Normally it would be the average of what three estate agents valued it at, unless you get a professional valuer in .

..and importantly it's the value for a sale in 8 weeks.

Which means skipping the 'higher sale price, seeing how it goes and reducing until it picks up interest' and going straight to what it needs to be to get a sale in 8 weeks.