Valuations and part ex

Mustlovedogs

So we've recently tried a part ex with a developer. The house we wanted to buy was only a little bigger but it's the layout of my current ground floor that makes me want to move. Now I know part exchange means you accept a lower offer, I've done it before, and that's fine. I also know it's up to me to accept or walk away so please no negative comments on that. The reason I'd like some advice if possible, is because of the following. We had an independent valuation of 375000 with advice to market at 360000. The developer offered 310000. The house we wanted to buy was 499000 but obviously with such a low offer we can't justify. The new house is less than a mile away and even with 'new build premium' how is a house only a few square foot bigger, worth 200000 more?! So confused.... I now need to decide whether to put my house on the market or just redesign my entire ground floor....

singhini

Personally i would not move but think about re-designing the layout.

At the current figures / offers of £500,000 and £310,000 that's 60% uplift (not worth it)
At full valuation for yours that's £500,000 and £375,000 making 33% uplift (still not worth it IMHO)

If the new build is just s few square foot bigger and has the new build premium i would still not expect a difference of between £125,000 and £190,000

And you still have stamp duty, solicitors fees, estate agents fees and associated moving costs to consider 

Mustlovedogs

singhini said:

Personally i would not move but think about re-designing the layout.

At the current figures / offers of £500,000 and £310,000 that's 60% uplift (not worth it)
At full valuation for yours that's £500,000 and £375,000 making 33% uplift (still not worth it IMHO)

If the new build is just s few square foot bigger and has the new build premium i would still not expect a difference of between £125,000 and £190,000

And you still have stamp duty, solicitors fees, estate agents fees and associated moving costs to consider 

As much as I love the new property, you are right.  Thank you! 

ian1246

How much would redesigning cost you? Probably a fraction of the difference & you could probably cover the costs by an additional mortgage with your current provider! Couple of weeks disturbance and you'll be done!

TroubledTarts

If you have the space to build out and renovate and are happy with your area and neighbours then don't move.

Mustlovedogs

ian1246 said:

How much would redesigning cost you? Probably a fraction of the difference & you could probably cover the costs by an additional mortgage with your current provider! Couple of weeks disturbance and you'll be done!

This is what I'm wondering.....but then it's finding reliable builders and tradesmen etc and borrowing on top of our current mortgage to do it. It's difficult to decide what's best. I'd guess around 100 which is better than two, but then I'm not necessarily adding value to our property so no idea which would make the best financial sense. I can't believe a 200k price difference for a same size property (albeit newer, mine is 9 years old) surely others won't pay that. Very confusing. Guessing I won't know until I ask someone to draw up a plan and get quotes. Thanks for your help 

ian1246

Mustlovedogs said:

ian1246 said:

How much would redesigning cost you? Probably a fraction of the difference & you could probably cover the costs by an additional mortgage with your current provider! Couple of weeks disturbance and you'll be done!

This is what I'm wondering.....but then it's finding reliable builders and tradesmen etc and borrowing on top of our current mortgage to do it. It's difficult to decide what's best. I'd guess around 100 which is better than two, but then I'm not necessarily adding value to our property so no idea which would make the best financial sense. I can't believe a 200k price difference for a same size property (albeit newer, mine is 9 years old) surely others won't pay that. Very confusing. Guessing I won't know until I ask someone to draw up a plan and get quotes. Thanks for your help 

What about utilising the skills of an architect? They'd probably be able to do things you'd never thought of & manage the project, including sourcing trades!

Mustlovedogs

ian1246 said:

Mustlovedogs said:

ian1246 said:

How much would redesigning cost you? Probably a fraction of the difference & you could probably cover the costs by an additional mortgage with your current provider! Couple of weeks disturbance and you'll be done!

This is what I'm wondering.....but then it's finding reliable builders and tradesmen etc and borrowing on top of our current mortgage to do it. It's difficult to decide what's best. I'd guess around 100 which is better than two, but then I'm not necessarily adding value to our property so no idea which would make the best financial sense. I can't believe a 200k price difference for a same size property (albeit newer, mine is 9 years old) surely others won't pay that. Very confusing. Guessing I won't know until I ask someone to draw up a plan and get quotes. Thanks for your help 

What about utilising the skills of an architect? They'd probably be able to do things you'd never thought of & manage the project, including sourcing trades!

Thank you, this is something i am considering, definitely. I just need to decide whether to sell privately (and avoid the absolute pi** take that seems to be part ex...) or do exactly this and have someone redesign my downstairs