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A Guide to Home Part Exchange

ByDave Stopher

Oct 24, 2020 #property

Property part-exchange is becoming more and more popular due to the fact that is among the best ways to sell a home. If you would like to buy a new home and sell your old home, it is good to consider property part-exchange as it will help make the process of selling your old home hassle free and easy.

Many builders offer property part exchange and this has made the process of finding a good builder a daunting one. If you search on the internet, you will be confused since there are sites that tell you that property part-exchange makes economic sense while there are others that don’t believe that property part-exchange offers good value to homeowners.

Therefore, it is good to take your time so that you can find the best deal and maximize the value of your property exchange. This article is here to help you get the best deal in the market. So read on to find out how.

Look for a Good Housebuilder

Different house builders offer different property part-exchange programs. As such, it is good to research thoroughly and compare different house builders before choosing one. Ensure that you only choose a builder who is ready to pay 100% of value.

Make Your Home Look Good for Prospective Buyers

When you get ready to sell your property, it is good to ensure that it is in good condition. This will help you get a higher price offer for your property. Therefore, before the arrival of the valuers, ensure that your house is in good condition and present it well.

This applies to both the outside and the inside of your house. Check your garden. Is it completely overgrown? Or does it have a lot of rubbish? If so, do something before the valuers arrive. Otherwise, your property will be down-valued.

Did you know that the condition of a property can account for as much as 10% of the property’s value? So, present your property well to get a good offer. Clean your property and do the work before contacting valuers and you will get the best offer.

Learn how PX Works

Most of the builders out there often operate their part exchange programs on a “zero cost” basis. What this means is that the builder wants to buy and sell your home without losing or making any money. However, the problem is that most of them err on the side of caution and it is good to understand how they work as this will help you get the best offer possible.

First of all, try to be realistic. Seven in ten people believe their property is worth more than buyers do. Do thorough research before you start looking for a new home and try to be realistic about the price that you can get for your property. Check recent sales on Rightmove and Zoopla to get a better idea.

Would you like your property to be independently valued by an estate agent? If the answer is a big yes, ask them for a 6-8 week sale price rather than an open market sale price. Doing so will help you get a more honest answer.

Secondly, find out how they will value your property. Most of the builders usually use what is known as “the two agent method” which involves asking two agents to value property and then offering the homeowner the average of the two evaluations. In our opinion, this method is not very reliable as it is more likely to under-value or over-value your property.

In case you are offered a low valuation, ask for the comparable properties used to peg your property’s value. Thirdly, keep in mind that despite the fact that house builders operate their PX programs at zero cost, none of them do. Operating PX programs at zero cost is impossible considering the fact that there are lots of costs incurred when buying and selling a property.

House builders invariably end up contributing extra to the purchase price of part exchange properties and contribute more on new sites in order to get sales rolling, sites where sales are slow or sites that they are closing out (so they can move out).

Avoid Over-exposing Your Property

Putting your property on the market all by yourself before trying part exchange is not a good idea except when you are sure that you can get a private sale. Keep in mind that good valuers will consider how long your property has been on the market and determine its valuation.

If your property has been on the market for 6 months, the valuers will most likely down value it even if it has a much higher price. It is not a must to take a part-exchange offer. Therefore, get the offers in first and if you do not like them, try an open market sale with your favorite local agent.

Consider the Whole Deal, Not Just the Price

While the price you are offered for your property is among the most important things to consider when it comes to deciding whether or not part exchange is ideal for you, it is not all about the one price. Part exchanging a house is way simpler than selling it on the open market and there is a lot of money to be saved in other areas too.

First of all, you will not have to pay estate agent fees. Depending on where you live and how your local agents operate, this can help you save up to 2% of the property’s value. For instance, for a house whose market value is £250,000 you could end up saving £5,000.

Part-exchange is regarded as an effective and efficient way to sell your home when you want to move to a new house. So, don’t believe what some naysayers online say about part-exchange as what they are saying is not true. You can get great value from PX provided you choose a good builder. With PX, you can get a better deal for your property than when you sell it on the open market.

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