Part exchanging your house for a new build

Altern8

Hey,

I'm just after some advice, What are these part exchange offers on new builds like? They say they will sell your house and you move into the new house but are there any catches and what are they?

What if they cant sell your house?

Cheers
Craig

JoJoArmani

Hi Craig - there are a few other posts knocking about on this.

They offer you less than your house is worth (usually) and take your house in part ex on theirs. They then own your house and it is their problem if is does not sell - hence why they offer you alot less than it is worth - so they can afford to sell it quick and cheap.

Its good if you can't sell and can afford their new build price...

Check out the other posts for ideas on how much discount etc you can get...

But don't be fooled into thinking it is a quick way into a new home - the conveyancing still takes an age....!!!

Good Luck!!

JoJo

autocasher

yes, but after a visit to a local persimmon development they even offered to purchase my current 2 bed flat in part ex for a new build 1 bedroom (as i want to trade down in this way). my current flat is worth about £30k more than the new build but they're still going to take it in part ex - how about that?! even witht the reduced valuation for the part ex i'll clear my current mortgage totally with the difference and get a brand new flat as well.

so although their standard policy may be to only do a part ex if your trade-in is 30% less or so than the new purchase....in these current climes and if you make it absolutely clear that you want the property and its the only way you'll do it..then well, it appears they're flexible!

god bless the new housing climate hehe

Ashelee

hi There

this is something I can comment on as we are in the process of moving home on such a scheme.

moved into a new build approx 18 months ago on phase 1 and have made approx 25k in equity on our existing home. purchase price was 150k and its now valued at £175 (4 bed town house in the North East).

We are literally moving from phase 1 to phase 2, similar house style but a much better plot for our needs.

The builder (George Wimpey) has assigned a EA on our behalf and has put the house up for sale at £135k!!! The builder should offer you a guarenteed price for your home though, we've accepted £170k however I managed to get them to drop the price of the new house by 5k to compensate for the difference between their guarenteed price for our home and the valuation price.

There should eb some negotiation between yourself and the builder to ensure that you get the best deal possible.. we got 5k off, carpets, lawns, fencing, chrome throughout etc which comes to about 12k.

Difficulty is that with the house market being slow people just arent shoppping for new homes... Id have hoped that the opportunity to buy a 175k home for 40k less would have been a huge attraction but we just arent getting the interest (

Ashley