Can You Part Exchange Your House in the Same Way as Your Car?
Part exchange isn’t just for vehicles. If you’re looking for a quick and easy property sale, then you can absolutely approach a property developer who will offset the value of your current house against the cost of one of their new builds.
But what does this involve – and is it a good idea? In this article, the specialists at Property Solvers – experts at selling homes fast – take a look at the world of property part exchange.
Why Part Exchange Your Property?
There are many reasons why homeowners choose a part exchange approach.
One of the most common is a need to sell quickly. If a property you own is costing you significant sums of money or somehow having a negative impact on your health or wellbeing, you’ll probably want it off your hands as soon as possible.
You may also be facing personal or work-related pressures – such as a soon-to-close opportunity to relocate for the career of a lifetime.
If your chief priority is speed, then part exchange may well be the way to go. Because you’re “selling” directly to a property developer and your house’s value will be set against a new home, there will be no chain and the whole process will be over quickly.
Another reason sellers give for part exchange is that their current property is proving almost impossible to get rid of.
If months on the property market, a change of real estate agents and a proactive approach to marketing has done nothing, part exchange may offer some relief and free you up to get on with life.
As well as a quick turnaround without the stresses of a property chain, part exchange cuts out estate agency and conveyancing fees and much of the complex red tape involved in a traditional sale.
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What are the Downsides?
It is highly unlikely that you will receive the full market value for your property. Part exchange is not necessarily suited to sellers who wish to make a tidy profit from the sale of their home.
In a similar manner to vehicular part exchange, property developers will usually offer you a discounted price for your old house – as they’ll want to make a profit when selling it on. If they offer full price, there is probably something wrong with the property you will receive from them!
According to Ruban Selvanayagam co-founder of Property Solvers (a UK based house sale specialist firm) and author of the guide to UK house-part exchange schemes: “it often makes sense to sell a property for a realistic price on the open market. Although things will take longer, you’re likely to get more control over the process and save money.”
Additionally, when it comes to your new home, you will be somewhat limited when it comes to the range of options available. You will first need to find a building project in your chosen area that is accepting part exchange as a means of payment. This can narrow the field significantly.
Part exchange schemes tend to be run by developers selling new builds, so if you dream of a quaint Victorian cottage, this approach probably isn’t for you.
New build estates tend to be created in phases, so it may be worth checking whether work will still be going on around you if you part exchange and then move into a finished property on a larger, unfinished project.
You should always ask for a developer’s plans to see how the area will look when finished. Is that definitely somewhere you’d want to live? You’d also need to take into account. You may also need to accept the day to day challenges of living surrounded by intrusive building work.
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Alternatives to Part Exchange
While there are some great benefits to part exchange for homeowners in certain circumstances, it may not be for everyone.
However, listing property with an estate agent may also be a no-go, particularly if you need a quick sale and do not wish to rely on chains or negotiate with potential buyers.
Auction is also an option for those looking for a quick sale, but this means that your home will go to the highest bidder – which may leave you with significantly less capital than you hoped – and there is little to no room for negotiation.
One of the best alternatives to all of these methods of sale is to use the services of a fast home-buying company. These organisations can offer you cash up front in order to take the property off your hands in as little as a week.
Property Solvers offers this service, with their specialist team making a no-obligation cash offer up front to help you decide on your preferred approach.
You’ll often receive up to 75% of your home’s market value and you won’t need to contend with buyers, viewings, estate agency fees and legal costs. It’s a stress-free, chain-free approach that helps you to free up capital quickly in order to make your next move.
You won’t be tied down to purchasing property from a particular developer either, so where you go next is totally up to you.