Is Part-Exchange Right for me?
Part Exchange for a new home
Most leading new homebuilders now offer tried and tested part-exchange programmes. They are predominately targeted to homeowners who wish to move from a home that has a value of 60-75% of the new home. The developer buys your home, deducting the sale price from the cost of the new home. If you wish to move quickly, without the stress of selling your home part-exchange could be a good option for you.
How does it work?
1. Find a new property development and a home you like.
2. Check the developer offers part exchange
3. Your current home will then be valued to establish realistic selling price. Most developers ask for two valuations from independent estate agents.
4. The developer will then make you an offer in principle, subject to a survey.
5. If you accept this offer, you can then go ahead and arrange your mortgage. 6. Instruct a conveyancing solicitor to assess the new property and pay the reservation fee if applicable.
7. Once the assessment is complete, you can exchange contracts within four weeks.
8. When you exchange contracts, you may be asked to pay a 10% deposit.
9. Your solicitor will hang on to a portion of this. Once the money is released, you can complete the sale.
The right questions to ask a developer
Developers have reputable and established part exchange schemes, but it is good to be assured that you haven't missed anything. For example,
- What costs are included in the part exchange scheme?
- Does to the developer adhere to the Consumer Code for New Homes?
- Are there any fees, e.g. cancellation or non-completion?
- Can I negotiate the price of the new property?
- How long will the process take?
- Are extras like carpets, appliances and fitted wardrobes included?
About us
pxmyhome is an independent website service providing information and options to people considering part-exchange of their home. We do not provide financial advice and are not regulated by the FCA. We are not involved in any aspect of the house purchase chain and exist only to provide information and contacts to our readers.