Q. Can you part exchange a house?
A. Yes, you can! Property part exchange was pioneered over 30 years ago by Barratt Homes, and is now offered by the majority of medium and large new home builders. Essentially, they take your existing property off your hands so that you can purchase their new build.
Q. How does it work?
A. Very similarly to part exchanging a car! You choose your new house and the builder will make you an offer on your existing property. This will generally be between 80 – 90% of the market value as determined by at least two independent valuations. The builder will then generally handle the completion process, meaning that once you’ve agreed a completion date, you don’t have to worry about anything else except the move to your new life.
Some of the larger new home builders will offer the part exchange service using their own funds, but many will use a third party company to finance and manage the process – a home buyer.
Q. What are the good and bad points about part exchanging a house?
- You get to secure your dream new home
- Speed – if the new home is ready, part exchange can be arranged in a matter of days if necessary
- Certainty – you have a definite moving date and the peace of mind that the sale won’t fall through
- Hassle-free – you don’t have to worry about arranging viewings, negotiation or completion delays
- You may lose the ability to negotiate discounts
- You will get a lower price than you may have achieved on the open market in time
- Some new home builders have strict controls on which houses they will part exchange, such as it must be worth less than 70% of the new build price or that it must be in good condition.
Q. What do industry experts have to say about it?
A. There is broad industry agreement that depending on your situation, the positives outweigh the negatives. Here are some comments from those in the know…
Although this saves money on estate agents’ fees and provides a guaranteed buyer straight away, the downside is that you probably won’t receive the full market value for your property.
However, with property not shifting quickly at the moment, a part exchange deal could mean the difference between moving and not moving.
Ray Boulger, Senior Technical Manager at mortgage broker John Charcol says;
Part exchange takes away a lot of the hassle of a private sale, especially as a private sale would probably be in a chain.
Peter Lowndes, Lane Fox Estate Agency says;
Estate agents also like part exchange because it unblocks property chains. â€œGenerally it’s a way of doing the deal that suits both parties. It stops stress.
In conclusion, in today’s difficult market, if securing your dream new home is more important to you than obtaining the highest possible price for you existing property, part exchange could be just the solution you need!
Quick Move Now is the UK’s leading home buyer, offering a quick, secure and hassle-free house sale. Our experienced team, efficient processes and substantial cash reserves allow us to make immediate purchases, enabling you to sell your house quickly and move on with your life.