Our fully funded part exchange proposition is not only designed to help house builders and developers. It also helps home owners who want to buy a new home but cannot sell their existing property or do not have the time to sell it.
While working with the developer and the home buyer, we typically arrange two independent valuations of the property, provide a valuation report to the developer and facilitate a cash offer to the home buyer for their existing property. We also work with developers who have their own in-house part exchange schemes, offering them appraisals and comparisons while managing the sale of the existing property through a UK wide chain of group and independent estate agents.
The key benefits
This part exchange proposition benefits the buyer as they are able to sell their property directly to the builder. This means their existing house will be sold quickly to a guaranteed buyer, and securing their sale on the new build means they do not have to pay any estate agency fees.
The part exchange offering is also beneficial for the builder as they have secured a sale on that particular new property. By offering part exchange, the housebuilder benefits from more purchasers for their new build properties as well as an improved cash flow. It also frees up valuable capital and provides quick transaction timescales and turnaround times, as contracts are exchanged quickly with delayed completion being arranged where necessary.
The rise of part exchange
Many buyers are receptive to exploring part exchange as a proposition, although some will only go ahead if they are happy with the price they are going to receive. However, in our experience, many buyers accept a part exchange offer even if it is marginally lower than they can get on the open market. This is because as well as not having to pay estate agency fees there is no danger of the sale getting delayed due to issues with the house buying chain.
On another note, it is important to address how the demographic shift to an ageing population means that more retired people are looking to downsize. In fact, it was recently reported that Britain could be facing a “downsizing boom”, with nearly half of its pensioners thinking about moving to a smaller home. This isn’t that surprising considering the majority have substantial equity in their property and want to run a smaller home, as this is often less of a hassle. As a result this would also provide the much needed boost to the UK’s chronic housing shortage.
Flexibility is key
We are often asked if all properties are suitable for part exchange. Even those with structural problems are considered. While most housebuilders will not accept people part exchanging if their property is worth more than 70% of the new property, we have no problem with this. We pride ourselves on facilitating the purchase of a property that is significantly larger than the new build home that is being bought.
Our objective is to structure part exchange deals that work for both the developer and the home owner. By working with a number of specialist, cash rich buyers, we ensure we are always in a position to enable the purchase of any property at any value. This is just one of the reasons why part exchange remains an attractive option for many customers looking to move, as there is less worry over the selling of their home, as well as a simplified moving process. It is a win-win situation for all involved.