Trade in your old home for a new-build
Part exchange is becoming more prevalent in a property market that has slowed so here is a guide to part exchanging your property for a new build home. Sharon Dale reports
WHEN homes were selling like hotcakes, part exchange on new build homes became relatively rare. Now that the market has turned we are starting to see would-be buyers return to the scheme operated by some but not all housebuilders.
Research from Barratt Developments Yorkshire East, which includes the Barratt Homes and David Wilson brands, shows an uplift in properties purchased via part-exchange across North, East and South Yorkshire compared to the same period last year. Other developers offering the scheme are reporting similar findings.
Park exchange allows you to use your existing house as part payment towards a new-build home.
The process usually begins with the developer getting independent valuations from two estate agents as to what your property is worth.
The agents will be asked to look at what the house might realistically sell for within a few weeks rather than an optimistic asking price.
The developer will then offer you a set amount for your home, which is almost always lower than you might get on the open market, however there are some benefits.
You will avoid the usual stress and jeopardy that comes with selling your home in the traditional way. According to recent data from Quick Move Now, a quarter of property sales fell through before completion in the second quarter of this year.
Another benefit is that there will be no estate agent fees to pay. You will also be able to stay in your existing home until your new property is ready, making the selling and buying process efficient and straightforward, though completion dates for newly built homes are not always set in stone due to unforeseen events.
These usually involve foul weather, which may hold up construction, so that is something you should be prepared for, particularly if you are moving for work or to get your child into a particular school within a tight timeframe.
If you are unhappy with the valuation of your existing home then you might be able to negotiate a discount on the price of the new home you want to buy or you could inquire about the possibility of some additional extras or upgrades. Always ask nicely as these are not a given. Don’t forget to read the small print and take note of any clauses including that your existing home should be clean before you hand over the keys.
Katherine and Chris Cundall opted for a part-exchange when they bought a four-bedroom property on a Miller Homes development in Thorpe Willoughby near Selby.
The couple, who have two children, had been concerned about leaving the village they loved and also worried about getting caught in a chain if they sold their house in the conventional way on the open market.
Kathryn says: “We had definitely outgrown our old home but were keen to stay in the village as the children were settled at the school and we had our friends and family close by. Having the opportunity to buy a brand new, bigger home without having to sell our home the conventional way made moving so straightforward.
“The Miller Homes team were really supportive throughout the entire process, from the first time we
visited right until after we moved in.”
To hunt for part-exchange options, check out new build homes on property portals. If you see a house you want and the developer doesn’t do part-exchange then ask if they would be open to the option. They can only say “no” and they may say “yes” if sales aren’t progressing as quickly as they would like.
When you get the keys, don’t forget to have a snagging survey so you can check for any faults immediately and get them fixed by the housebuilder.
If part-exchange is not for you, then look out for deals on new developments, which are plentiful at the moment. At Barratt Homes Amblers Grange development in East Ardsley there is a £334,995 Denby home at plot 138 that comes with a £16,500 deposit boost plus free flooring worth £3,000 and an upgraded kitchen worth £2,700.
At Barratt’s Harrier chase development in Brough in the East Riding, a four-bedroom Radleigh home priced from £375,000 at plot 41 comes with part exchange plus £1,000 per month towards your mortgage for 12 months and £5,000 of upgrades including to the kitchen, adding a shower over bath, among other things.
Miller Homes is offering contributions to a deposit on selected developments including that at Harworth Grange in Haworth near Doncaster, where prices start at £189,995 for a three-bedroom semidetached house.
David Wilson Homes has a deal on its development on Halifax Road, Penistone. The four-bedroom detached house with separate home office is £499,995.