House Part Exchange - New Build

[TopCat]

Starting to look at houses with a view to moving in the New Year. Spotted 'part exchange' on the Taylor Wimpey site and wondered if anyone had ever done this? Is it worth it? Presumably it's similar to part ex on a car where you get much less than the value but it's less hassle?

Anyone experienced this?

 

[little e]

Yes 20 years ago, 3 valuations from Estate Agents and received the average of the 3. Was definitely better than hanging about for months with chains and people putting in stupid offers

 

[HANDSOME_DAN]

Got a price from one on my old place and didn’t go through with it for various reasons but they were pretty bang on in terms of offer vs what I eventually sold it for. No agents fees to pay either, and the pleasure of not having to deal with the useless twats.

 

[TopCat]

Cool thanks both. Going to see a couple of developers tomorrow so will see what the craic is

 

[AndrewP]

Starting to look at houses with a view to moving in the New Year. Spotted 'part exchange' on the Taylor Wimpey site and wondered if anyone had ever done this? Is it worth it? Presumably it's similar to part ex on a car where you get much less than the value but it's less hassle?

Anyone experienced this?

You get an offer based on how much it would sell for quickly. This is likely to be lower than you'd get on the open market if you were willing to wait.

 

[HANDSOME_DAN]

You get an offer based on how much it would sell for quickly. This is likely to be lower than you'd get on the open market if you were willing to wait.

I must admit that at the time Andy I felt that they were being a bit short with their offer but it was pretty bang on in my case based on what it went for, basically I was a bit deluded as to the value of my house. Agree that they price it to a lower end of a range but pricing houses isn’t an exact science like. I’m of the view that a few grand here and there pales into insignificance over 25 years and the most important thing is to get the house that you really want, and be happy.

 

[flashpants]

Cool thanks both. Going to see a couple of developers tomorrow so will see what the craic is

we are thinking about this as well. Getting in early when the development is starting helps to get a better deal apparently? be interested as to how you get on mate.

 

[Lewberry pie]

I must admit that at the time Andy I felt that they were being a bit short with their offer but it was pretty bang on in my case based on what it went for, basically I was a bit deluded as to the value of my house. Agree that they price it to a lower end of a range but pricing houses isn’t an exact science like. I’m of the view that a few grand here and there pales into insignificance over 25 years and the most important thing is to get the house that you really want, and be happy.

Most people are like, I've been watching a house that's been overpriced fail to sell for 3 years, it's been reduced by pennies on that time, it's still for sale but clearly the owners are overvaluing it or it would have sold by now.

 

[HANDSOME_DAN]

Most people are like, I've been watching a house that's been overpriced fail to sell for 3 years, it's been reduced by pennies on that time, it's still for sale but clearly the owners are overvaluing it or it would have sold by now.

Agree. They fall into a trap of thinking that their decor and minor mods add value. At the other end of the scale i think that if you sell a house for full asking in 48 hours you probably priced it too low. But who gives a toss if it gets you your move, quickly.

 

[Deleted member 36123]

We did this - we got full market value and the builder sold it for 4k less than they gave us...and we got to live in it until ours was ready.

 

[Ambivalent Dave]

did a part-ex in 2009. Got offered about 10k less than others in my street were up for sale for. Took it as got a good deal on new place. It went up for sale for 5k more before we even moved Told everyone that came to look at it what the builders paid for it. it sold for what i was given in the end

others in my street eventually dropped their price to what mine sold for.

as @AndrewP said, they offer a price for what they’ll sell for.

We did this - we got full market value and the builder sold it for 4k less than they gave us...and we got to live in it until ours was ready.

aye us too. just shows you the margins on new builds that they can chin off 4k at a stroke

 

[Quench]

Starting to look at houses with a view to moving in the New Year. Spotted 'part exchange' on the Taylor Wimpey site and wondered if anyone had ever done this? Is it worth it? Presumably it's similar to part ex on a car where you get much less than the value but it's less hassle?

Anyone experienced this?

We did this in 1996 to move into our current place. We got what the house was up for sale for. Nothing was moving at the time and it worked well for us. The builders sold it for less than they'd given us for it. Would do it again when we downsize.

 

[HANDSOME_DAN]

did a part-ex in 2009. Got offered about 10k less than others in my street were up for sale for. Took it as got a good deal on new place. It went up for sale for 5k more before we even moved Told everyone that came to look at it what the builders paid for it. it sold for what i was given in the end

others in my street eventually dropped their price to what mine sold for.

as @AndrewP said, they offer a price for what they’ll sell for.


aye us too. just shows you the margins on new builds that they can chin off 4k at a stroke

Sounds like a fair deal as the others wouldn’t have got asking price anyway. Your 2nd point is true as well in that brand new houses have a spot of initial depreciation in them as they are brand new. Majority of cases a new build wouldn’t sell 6 months later for the same amount unless the market is taking off. Taketh on one hand give with the other

 

[beezer]

Persimmon offered me about £10k less than I thought mine was worth. The house I wanted was one of the last few on the site so I suspected they wanted off, so I said ok if that’s your best offer, my offer for the new place is £15k less than what you’re asking.

They accepted but said we’ll reduce our asking price by £5k and increase your part ex by £10k. Didn’t see the logic in this other than them making it look like it sold for more. It went too easily to be honest I’ve always wondered if I should have offered less.

 

[JAZZMANB]

I must admit that at the time Andy I felt that they were being a bit short with their offer but it was pretty bang on in my case based on what it went for, basically I was a bit deluded as to the value of my house. Agree that they price it to a lower end of a range but pricing houses isn’t an exact science like. I’m of the view that a few grand here and there pales into insignificance over 25 years and the most important thing is to get the house that you really want, and be happy.

Think it's known as a 12 week price or something. Like a trade price on a car ..Priced to sell quickly

Cool thanks both. Going to see a couple of developers tomorrow so will see what the craic is

Think it has to be about 75% of the new home value or less .can't quite remember

 

[Kevj]

Persimmon offered me about £10k less than I thought mine was worth. The house I wanted was one of the last few on the site so I suspected they wanted off, so I said ok if that’s your best offer, my offer for the new place is £15k less than what you’re asking.

They accepted but said we’ll reduce our asking price by £5k and increase your part ex by £10k. Didn’t see the logic in this other than them making it look like it sold for more. It went too easily to be honest I’ve always wondered if I should have offered less.

The tax benefit for buying your house is improved from their perspective?

I imagine there is a government incentive for new build part ex schemes and they have the same turnover and costs, but benefit elsewhere?

 

[Le Chuck]

Starting to look at houses with a view to moving in the New Year. Spotted 'part exchange' on the Taylor Wimpey site and wondered if anyone had ever done this? Is it worth it? Presumably it's similar to part ex on a car where you get much less than the value but it's less hassle?

Anyone experienced this?

The other thing to consider is that with part ex, you normally have to pay the asking price on the new house, wheras if you don't you can haggle about 5% off. Unless of course you're buying one of the last remaining ones that they're desperate to shift. So you get hit twice from both ends (but do save on estate agents fees) and it does save loads of hassle and no risk of buyers pulling out etc

 

[beezer]

The tax benefit for buying your house is improved from their perspective?

I imagine there is a government incentive for new build part ex schemes and they have the same turnover and costs, but benefit elsewhere?

Very probably. There was definitely something in it for them to do it that way, but other than about £50 stamp it made no difference to me so I went with it. Best thing I ever did to be honest, I know people slate new builds but I’ve been very happy with mine.

 

[Le Chuck]

Very probably. There was definitely something in it for them to do it that way, but other than about £50 stamp it made no difference to me so I went with it. Best thing I ever did to be honest, I know people slate new builds but I’ve been very happy with mine.

I always thought it was due to that other people can lookup selling prices, and its in their interest that the selling price is as high as possible to give the impression the houses are worth more than they really are.

 

[KarenDent]

Very probably. There was definitely something in it for them to do it that way, but other than about £50 stamp it made no difference to me so I went with it. Best thing I ever did to be honest, I know people slate new builds but I’ve been very happy with mine.

Pleased to hear that