Redrow part exchange

superkick40

Have been to view a house tonight and considering making an offer depending on the outcome of a viewing at a different property on Wednesday. The house is a 5 year old Bloor build and owner has reserved a plot on a new estate with Redrow. Both houses are in the WS postcode area. They have said Redrow are driving the sale of their house is this normal and have listed it with two differenet agents is this normal process? They also mentioned if it doesn’t sell Redrow will offer part exchage to ensure conpletion, is there a typical % value Redrow would use as a guideline for part exchanges? Just wondering if I can use this to my advantage in any negotiations.

SarahB16

superkick40 said:

Have been to view a house tonight and considering making an offer depending on the outcome of a viewing at a different property on Wednesday. The house is a 5 year old Bloor build and owner has reserved a plot on a new estate with Redrow. Both houses are in the WS postcode area. They have said Redrow are driving the sale of their house is this normal and have listed it with two differenet agents is this normal process? They also mentioned if it doesn’t sell Redrow will offer part exchage to ensure conpletion, is there a typical % value Redrow would use as a guideline for part exchanges? Just wondering if I can use this to my advantage in any negotiations.

Are you a first time buyer or without your own house to sell?  Your offer will be viewed more positively if you don't have a house to sell.  

I work in the sector and everything you have shared sounds perfectly normal and reasonable to me.  

I don't understand what you are asking when you refer to 'typical % value'?  Are you thinking of waiting and hoping to buy the home further down the line from Redrow and hoping to get a discount much later on?  

Redrow will offer market value for the home on the assumption nobody else has bought it.  

superkick40

SarahB16 said:

superkick40 said:

Have been to view a house tonight and considering making an offer depending on the outcome of a viewing at a different property on Wednesday. The house is a 5 year old Bloor build and owner has reserved a plot on a new estate with Redrow. Both houses are in the WS postcode area. They have said Redrow are driving the sale of their house is this normal and have listed it with two differenet agents is this normal process? They also mentioned if it doesn’t sell Redrow will offer part exchage to ensure conpletion, is there a typical % value Redrow would use as a guideline for part exchanges? Just wondering if I can use this to my advantage in any negotiations.

Are you a first time buyer or without your own house to sell?  Your offer will be viewed more positively if you don't have a house to sell.  

I work in the sector and everything you have shared sounds perfectly normal and reasonable to me.  

I don't understand what you are asking when you refer to 'typical % value'?  Are you thinking of waiting and hoping to buy the home further down the line from Redrow and hoping to get a discount much later on?  

Redrow will offer market value for the home on the assumption nobody else has bought it.  

We are first time buyers with everything ready to go have bid on a couple of properties already but missed out on them. 

By % I mean eg if house is valued at 300k do Redrow work off a 90% of value as a rough guide in which case they would likely offer £270k. In which case would a bid of £285k to the owner be more appealing. Basically I guess I’m wondering if I can use a Redrow “lower” part ex to my gain

SarahB16

superkick40 said:

SarahB16 said:

superkick40 said:

Have been to view a house tonight and considering making an offer depending on the outcome of a viewing at a different property on Wednesday. The house is a 5 year old Bloor build and owner has reserved a plot on a new estate with Redrow. Both houses are in the WS postcode area. They have said Redrow are driving the sale of their house is this normal and have listed it with two differenet agents is this normal process? They also mentioned if it doesn’t sell Redrow will offer part exchage to ensure conpletion, is there a typical % value Redrow would use as a guideline for part exchanges? Just wondering if I can use this to my advantage in any negotiations.

Are you a first time buyer or without your own house to sell?  Your offer will be viewed more positively if you don't have a house to sell.  

I work in the sector and everything you have shared sounds perfectly normal and reasonable to me.  

I don't understand what you are asking when you refer to 'typical % value'?  Are you thinking of waiting and hoping to buy the home further down the line from Redrow and hoping to get a discount much later on?  

Redrow will offer market value for the home on the assumption nobody else has bought it.  

We are first time buyers with everything ready to go have bid on a couple of properties already but missed out on them. 

By % I mean eg if house is valued at 300k do Redrow work off a 90% of value as a rough guide in which case they would likely offer £270k. In which case would a bid of £285k to the owner be more appealing. Basically I guess I’m wondering if I can use a Redrow “lower” part ex to my gain

Firstly you being first time buyers will work in your favour (because you do not have a home of your own to sell).  

If you don't mind me saying you've misunderstood how this works.   

Let's call the home you want 'Bloor home'.  Redrow are not competing against you instead they are providing a backstop position so they can sell their plot to Bloor home owner.  

Bloor home owner is advertising his home for £300k (using your example) therefore if you wish to buy it you need to offer £300k (or very close or run the risk somebody else offers £300k and you lose out).  

I don't know the exact specifics of how Redrow offer but most housebuilders will offer pretty much close to market value so they may offer c.£290k but like I said you are not competing with Redrow.  

Bloor home owner has had his house valued at £300k and is trying to sell it for that and if not he may accept say £285k-£300k but he won't be thinking that's better than what Redrow will offer.  Bloor home owner is simply trying his very best to sell his home but Redrow also wish Bloor home owner to sell on the open market too but have said if you don't we will purchase it from you so that you can purchase our Redrow plot.  

Like I said try not to think of yourself competing with Redrow as Redrow have absolutely no desire whatsoever to purchase the Bloor house they are simply providing a backstop position so that their plot sells.  

Hopefully you now understand how it works.  

To summarise if you want the Bloor home offer £300k or close to it or run the risk that somebody else purchases it.  Use your first time buyer status to your advantage but please don't think of yourself as competing with Redrow.  

Bigphil1474

Don't offer '£300k'. OP, you are right, if Redrow can't sell the house on behalf of the vendor, they won't give them the marketed price in part ex. Part ex is still Redrow selling the house at some point. It is also fair to say that Redrow are making their profit on the new house they are selling, so aren't necessarily looking to make a chunk of profit out of the part ex property as well - not to say they wouldn't take it if they could. They are not one of those we buy any house types that offer at best 80% of market value to desperate sellers. 

Personally, I would go with the old 10% below starting price and negotiate up from there. The seller should be keen, and generally speaking houses are moving slowly at the moment so you 're giving them the chance for a short chain so they can move into their new shiny home when it's finished. Yes, you might miss out, but that's always a risk. I'd rather underpay than overpay - what difference would £15k make to you in mortgage payments that aren't needed. The only problem would be waiting for their new house to be finished - my nephew moved in 9 months after they were supposed to due to building delays, so it's something to consider.

Albermarle

The part exchange offered by developers is less about squeezing extra money out of the situation, but to get over the practicalities of people wanting to buy new houses, but with no firm date for when the house will actually be finally ready.

There are regular threads on here, where people have sold their house, but there are delays in the completion of the new house they plan to buy. Then the buyers of their house get cold feet due to the delays/uncertainty.
The part exchange offer is a backstop to stop the whole deal falling through for the buyer and the developer.