Part Exchange

GSCSwad

Can anyone warn me of any potential hazards in part exchanging my current property for a new one?

Because of the current situation and the fact that first time buyers are struggling to obtain a mortgage, I have decided to look into this option.

I was of the understanding that the developer offers far less for your property than it is worth. However, they look as though they will offer me my asking price and drop the price of the new house by £6k to strike a deal.

Provided I can get a mortgage for this amount then everything seems fine. Something tells me I may be missing a trick here though.

Richard_Webster

The new house is probably worth a lot less than the reduction they are giving you!

Jorgan_2

Can you make enquiries, maybe via a friend, as to what discount maybe available to someone who had agreed a sale on their own property? This will give you an idea as to what a more realistice value is on the property.

glen8

We are looking into a part-ex right now

You usually have to pay £250 to get the ball rolling. They send out two estate agents to value your home and then send the area manager for a quick look.

We have had all three out and expect to start negotiations this week

I won't settle for anything less than a £30,000 discount PLUS extras to clinch the deal.

You need to have a look at all the equivalent second hand homes and see if any are selling and if so...what they sold for.

Don't fall for the "as your part-ex you don't get any extra discounts" bulls**t. They artifically raise the asking price on the price sheets anyway and expect to discount.

I've done alot of research into this........NOTHING is selling at present. We noticed last week bellway homes have discounted a 5 bed detahced from £229,950 to £199,950 with a 110% part-ex scheme, carpets, curtains, upgraded kitchen, turfing and fencing.

5 Miles away another property dropped from £233,000 to £189,950 :-O........we were tempted but it's just a bit too far away

That just shows the lenghts they'll go to sell houses.

They need sales to keep shareholders happy. They will leave developments half finished if needed (like persimmon homes have done) but won't keep finished properties unsold.

I'll let you know the outcome this week and I think someone else is going down the part-ex road to and I promised them I'll give details on our offer.

another thing to keep in mind is that the 'extras' cost them nothing........fitted wardrobes, turfing and fencing will be bought for peanuts and the carpets will cost them less then it would you

GSCSwad

Thanks for that information Glen. Really usefull and has certainly perked my day up.

We already have the wheels in motion, and two estate agents will be popping around on Monday to value our property.

Have they mentioned anything about the value of the new property being 30% more than that of your current house? Thats what we have been told by them, which potentially counts us out because we would be 10k short.

Where in the country are you buying?

glen8

Yes you need to be moving up 30% to get a Part-ex

I am in Lincoln

If you are 10k short can you try and get 10k worth of extras added into the deal and then get a 10k extra mortgage?

If you can give me some figures, estimated price on yours, new house price, web link I'll see if there's a way of making it work

GSCSwad

My house is an eight year old, two bed, mid terraced on a popular estate. Obviously this house is aimed at a first time buyer, which are rare these days.

The house is on the market for £120k. The house we are looking at is a new three bed corner house built by Bloors. This house has been marketed at £166,950.

If we sell our house at £118,000 we could get a mortgage for around £150k. Because of my car loan and a Northern Rock Penalty fee, I dont think we can borrow much more. Also, this house will be carpeted and has built in wardrobes. I'm not sure how much extra we could ask for.

I also have my eye on a Barratts new build, which has more space and a bigger garden. This asking price for this is £175,000. This house would be empty, no extras.

Any thoughts or suggestions are very welcome. I'm happy to haggle but not used to doing it.

GSCSwad

http://www.bloorhomes.com/developments/derbyshire/the-hollies/plot-types/120869.aspx?PlotTypeCode=THEWALSHAM_231

http://www.barratthomes.co.uk/ViewDetails.aspx?type=housetype&id=4efadc9b-f035-4dfb-b6f4-78083e01c729&development=2ff1633e-2d6d-445a-be66-8393e357ba66

glen8

how much is left on your current mortgage?

GSCSwad

Around £105k.

Is_You

We are just going through the process of px with Barratt. It was one way out of the house we are in so we went for it. They probably are over priced new builds but to be honest if we stay where we are we would be loosing a lot of money, the area has gone down hill and a rather large hotel has been built right outside our back garden!!

Anyway, we got a good deal with Barratt, they knocked 16,000 off the price of the house and paid our 5% dep, plus we got extras thrown in. People on this forum warned me against it, but we plan to stay in the new house for at least 10 years and the market goes up and down so it is a risk we were willing to take. I have had a Barratt before and we px that too (about 13yrs ago) so know it is a fairly pain free experience. My advice would be to get your figures sorted and go to Barratt or other builder and explain what you want from them, they too are desperate to sell so anything is possible.

If you are desperate to move from where you are then go for it. We would have made more money if we sold ourselves but not one house has sold on our estate in the last year and a half and there are a lot up, mainly because of what has been built around it.

Good luck with what you decide and if you want further info then PM me as I will probably get shot down on this site for buying a new build!