How does Part Exchange work when buying a new house?
A Part Exchange scheme is when a developer offers to buy your current home for an agreed price, which serves as part of the payment towards a new build home that you are buying from them. A developer will instruct up to three local estate agents to give an independent valuation of the home you are selling and if interested will then make a cash offer. We aim to get an offer to our buyers within seven days after valuation.
Any existing estate agent fees will be paid by the developer who then markets your original home and sells it. The stress and uncertainty of being in a long property chain is avoided and the moving process can be sped up considerably. You are guaranteed a sale once you and the developer agree on a selling price and your new home is reserved for you. An added bonus is developers may offer you up to seven days access to your former home post-purchase so you can move in at your own pace.
Generally, your existing property needs to be worth more than 65% of your future property and should be in good condition and structurally sound, and if it is a leasehold should have more than 80 years left on the lease.
Part Exchange is particularly beneficial as it allows buyers to stay in their current home until their new build is ready which counteracts possible build delays which have come around as a result of the pandemic and Brexit.
It is worth noting that Part Exchange schemes and Help To Buy equity loans cannot be used together to purchase a new home because the Help To Buy Scheme is only available to first-time buyers who therefore don’t have an existing property to part exchange.
What does assisted move mean?
Assisted Move Schemes are offered to buyers who are looking to buy a new build home from a developer and want to sell their existing home in the shortest time possible – typically in four to six weeks. In this scheme, their current home is sold on the open property market as normal, but agency fees are typically paid for by the developer, valuations are free and expert help and advice is offered to help sell your property, making the process as easy and hassle-free as possible.
How can I use these schemes?
At Kebbell, both schemes are available at all of our developments and are offered on a case by case basis depending partly on the current house a buyer is selling. At Cornelian Fields, our development in Scarborough, approximately 35% of our buyers have used the Assisted Move scheme to speed up their sale.
At our luxury apartment developments: Osborne House in Sunningdale and Misbourne House in Gerrards Cross, Part Exchange is proving more popular, as downsizers are benefitting from the ease of sale that this scheme provides.
Both of these schemes mean that buyers don’t have to pay estate agents fees which typically range from 1-3% of the home’s sale price saving the buyer thousands of pounds. The home selling process is also usually far smoother, simpler, quicker, less stressful and more reliable.
For more detailed information check out our help with buying page or get in touch with any of our sales negotiators to set up a meeting at one of our show homes.