Persimmon Part Exchange

loopy25

Hello,

I am looking at part exchanging my property. It is valued at around
190,000-200,000(by EA)The property we're interested in is listed at 332,500, however, there is currently a 5%off and SD paid offer bringing it down to 316 ish. The sales lady has said that a few weeks ago somebody got them down to 300,000. So my question is where would you consider starting our offers at? Ideally we'd like to be buying at under 300,000. Of course a lot depends on their valuation of our property!
If anyone has any advice or experience with this is would be a huge help.
Thanks : )

Trollfever

I would be making them silly offers on all the part-ex properties that they are unable to shift:

http://www.persimmonhomes.com/partx.aspx

SquatNow

I wouldn't touch a newbuild with a barge-pole.

That said, how much equity do you have?

loopy25

Our mortgage is 128,000.

We don't need to move, but we'd like to, so we can walk away.

Our property is very difficult to sell. It's a one off type place so nothing to compare to. That;s why we are looking at this as an option.
We like the new build property, it's on a particularly large plot, in the area I would like and on a smallish development of 40 houses. It's strange because I used to be very anti new builds!

SquatNow

So you have c£78k equity... if your lucky.

You bank will probably want you to have a 20% deposit in order to give you a half descent deal. So if you can bargain down to £300k you'll be needed £60k deposit. That leaves you £18k to cover stamp duty, fees etc.

The catch is, what will the BANK value the new place at.... that could be the kicker. If they say it's worth less than £300k you may have to eat into you £18k "costs" money. With the deals builders are doing at the mo the banks could easily value it below £270k.

If you were buying all cash/mortgage you'de be in a better position to negotiate with the bilders, but doing part-ex there is less "wiggle-room" as they'll be flogging the part-ex place at a huge loss.

So it's catch 22:
=> Cash buyer, builder knock price down from £300k to £270k
=> Part-Ex, builders use the £30k to prop-up Part-Ex price to £190k from the £160k they will get for it at auction.

Catch is, bank values house at £270k... the open market/quick sale value.

loopy25

Thanks for taking the time to reply.

Yes I think ending up with 78K is highly unlikely.

I had also wondered about the banks valuation. Do you think I should get back in touch with the bank before I get into negotiations? Probably the best idea.I don't really want to be paying much more than the banks valuation, if any at all.

I agree as well, far better to just be buying. Only thing in my favour is that they seem to be keen to close a deal before end of June.

wymondham

loopy25 wrote: »

We like the new build property, it's on a particularly large plot

I've never seen new build and large plot in the same sentence before, you're very lucky!

loopy25

:rotfl: well relatively large then!

wymondham

loopy25 wrote: »

:rotfl: well relatively large then!

Can you shake hands with your neighbours from the second floor windows? - that's the acid test! :rotfl:

TD5

SquatNow wrote: »

I wouldn't touch a newbuild with a barge-pole.

That said, how much equity do you have?

Judging by the speed that they have been 'chucking them up' around my way I wouldn't touch one either.

I think they have literally been 'bricking it' for the last 3 months.:eek:

stretchquaker

loopy25 wrote: »

Hello,

I am looking at part exchanging my property. It is valued at around
190,000-200,000(by EA)The property we're interested in is listed at 332,500, however, there is currently a 5%off and SD paid offer bringing it down to 316 ish. The sales lady has said that a few weeks ago somebody got them down to 300,000. So my question is where would you consider starting our offers at? Ideally we'd like to be buying at under 300,000. Of course a lot depends on their valuation of our property!
If anyone has any advice or experience with this is would be a huge help.
Thanks : )

Hey Loopy. We're in a similar position with Wimpey so your experience would be useful to know. The property we're looking at was on at £395k last month but has been dropped to £360k. Its built and ready and clearly the builders would like a completion before the mid year end. I would expect the part ex figure to come back quite low, but I would be looking to make up another 10% off as a starting gambit and see where we go from there. Will keep you in the picture....