New Home Part Exchange Schemes
Have you got the 'PX' Factor?
A quick guide to part exchange from online estate agent mousesale.
Part-exchange is a concept which was pioneered in this country by Barratt Homes over 30 years ago. To date they have part exchanged around 35,000 homes!
Today many New Home Developers will consider part exchange or assisted home purchase schemes to enable purchasers to buy one of their qualifying brand new homes.
What is the usual qualifying criteria?
First of all, you need to be trading up to a new home with that is more expensive than your old one - typically with a price difference of around 10%. Therefore if the new home you would like to buy is priced at say £250,0000 then your home should not be worth more than £225,000.
However please note that some developers may offer to pay you 100% of the value of your home whilst others could insist on a price differential of as much as 40% but it's a guaranteed sale, it usually happens fast, and it eliminates the dreaded chain.
Don’t worry if you are unsure of the value of your current home as online esttae agent mousesale should be able to provide you with a no obligation valuation.
There are lots of developments where part exchange will be considered and once again, mousesale will be able to give you advice in this regard.
When I have found a qualifying home what happens next?
online estate agent mousesale will provide a written valuation of your current home which we will use in our negotiations on your behalf with the developer to help them evaluate your home.
For an accurate valuation service, we use the rightmove 'Best Price Guide'. This tool combines access to over 10 million Rightmove, Land Registry and Registers of Scotland current and historic property prices.
We will compare properties that are currently on the market as well as those that have been sold or withdrawn from sale to give a fairly accurate picture of current house prices.
The developer may then appoint independent agents to carry out valuations on your current home for their consideration.
These valuations will be based on what the agents believe your home would achieve net in the current climate after reasonable marketing of say 6 – 8 weeks.
What happens next ?
Once the valuations are completed, the developer will be in a position to let you know whether they are able to make you a formal offer. The offer will normally take into account market factors together with the condition and likely marketability of your home in the present market.
The benefits will include not having to pay estate agents fees or for a Home Information Pack.
One of the downsides may be that because the valuation you receive is likely to be based on a quick sale, it could be less than the full market value - but then again chances are that you probably won’t receive the full amount from a buyer on the open market.
If I accept this offer how long will it take to move?
Should you accept the offer, the developer will then will send out a formal offer in writing setting out the terms and conditions of the offer.
At this point, you will be asked to complete a reservation form and pay a fee to reserve the property.
Contracts will be issued to your Solicitor with exchange and completion expected to take place within 4-6 weeks.
The key benefits:
- A guaranteed buyer for your existing home
- No estate agent fees to pay
- No chains or last minute hitches
- No need to pay for a Home Information Pack
The above notes are intended by online estate agent mousesale as a general guide only and are not exhaustive or representative of all situations.
If you are interested in part exchanging your current home for a brand new home, please contact us today.
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"Just a big thank you from myself and Sheila - could not believe it, just put up the sign and by jingo!!! House sold the same day. With the conveyance sorted...all has gone through so smoothly - it's saved us a small fortune!! Highly recommendable, helpful and extremely efficient."Mr & Mrs C Newman