The Dogmother Posted August 5, 2009 Share Posted August 5, 2009 Has anyone done a part exchange purchase on a house? A friend is considering doing this; the house they like is being renovated by a property developer, their current house is in need of repair, so they have suggested a part-X offering their house up against the proposed price of the new one. I understand that the developer is keen on this idea. I have advised caution, and that they get a survey done on both properties so that they know where they stand. Plus solicitor's advice. Can anyone else offer advice or experience that I can pass on? Quote Link to comment Share on other sites More sharing options...
Space Chick Posted August 5, 2009 Share Posted August 5, 2009 I have done this in the past, I got a few grand less for part exchanging than if I sold privately, but it did mean I could move much quicker and it was no hassle. So, personally I had a good experience. Quote Link to comment Share on other sites More sharing options...
The Dogmother Posted August 5, 2009 Author Share Posted August 5, 2009 Are there any possible hitches that you can see? Quote Link to comment Share on other sites More sharing options...
chickenanne Posted August 5, 2009 Share Posted August 5, 2009 H'mmm. I've never done it, but that doesn't stop me from wanting to add my two penceworth! She would save on estate agents fees. But... it depends on if she's getting the full value for her house. Maybe go to estate agents and get them to come in and value it, also give her an idea of how long before it would sell, and what work she would need to do before putting it on market. Obviously she does want to move so she's not wasting there time, just weighing up the options. Go to a surveyor and get a survey done on the new house, and treat it like any other. Does she actually want the new house? Is it the one she would choose if there was no hassle-free deal? Quote Link to comment Share on other sites More sharing options...
Space Chick Posted August 5, 2009 Share Posted August 5, 2009 From my experience there wasn't apart from selling at a slightly lower price. Although mine was done through a national builders 13 years ago before they became more common. It meant though, as soon as my mortgage offer came through, and the survey on my new house I was able to move. The only hitches I could see would be if anything negative came up on either survey. Hope this has helped. Quote Link to comment Share on other sites More sharing options...
Redwing Posted August 5, 2009 Share Posted August 5, 2009 A member of my family had an experience similar to Debs and was also very pleased with the outcome We looked in to this when we were desperate to move last year (I had a contract deadline with the company I work for) the only reason we didint go through with it was that the new house list price had to be £X% amount over the value of our house - in our case it had to be £120K over so our house was worth £150K and we had to commit to a new house with a value of £270K but because we were relocating to a cheaper area this would have meant moving to a huuuuuge house! More dusting? no thanks I suppose it make sense really after all most people want to upsize! Its worth your friends checking for similar clauses as they might saddle themselves with a big house and a massive mortgage Also another drawback was that we would have been limited to the less desirable plots on an estate as its often only 'selected' plots that are eligable Edited to add that if they are desperate to sell and would normally be willing to reduce the price then there are other ways to sell quickly, we offered a 10% 'vendors gifted deposit' so were willing to pay the buyers deposit which is a big draw these days, we also offered to pay stamp duty too. We ended up with less money for the house but it was worth it Quote Link to comment Share on other sites More sharing options...
Falkor Posted August 5, 2009 Share Posted August 5, 2009 OH is a financial adviser and I have worked in this industry for a good eight years now and part-exchanged are very common. As previoulsy stated before you may get slightly less money that on the open market but then the open market is still very slow at the moment so if your firend wants to move and specifically wants to move to this house then it sounds like a plan. If the property developer is a one man band rather than one of the bigger builders then he may have to raise a mortgage himself to purchase her house from her. this in itself can cause delays and again as said before surveys will be carried out on the house so if any major works need doing this could affect the mortgage being sought by the developer. Also the property that they are looking at; you say it is currently being renovated.....she needs to make sure that the developer intends to finish it. I have known it in the past where a part-ex has taken place and the person has moved into a partially completed property and the developer has not come back to finish the works required. Now this was only small things such as some grouting in a bathroom and a few door handles but I have heard stories of much more via local agents. So if she intends to move into the new property before the developer is finished the work but has completed on the sale/purchase I would strongly suggest getting the solicitors to get something in writing to confirm the house will be finished. Quote Link to comment Share on other sites More sharing options...
The Dogmother Posted August 5, 2009 Author Share Posted August 5, 2009 Thanks all for your advice, which I will pass on. The developer is a two man band - him and his builder partner, so a small concern. I get the impression that they buy up dilapidated houses and then do them up to sell on. They are as keen (obviously) as my friend to do a private sale without estate agents. I have advised getting both properties surveyed and valued. See? There's always loads of advice on here Quote Link to comment Share on other sites More sharing options...
WarrensWorld Posted August 5, 2009 Share Posted August 5, 2009 I have advised getting both properties surveyed and valued. See? There's always loads of advice on here Always trust in God, but tie up your Camel..... (old Arabic proverb)... Quote Link to comment Share on other sites More sharing options...
