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been to look at some new houses not far from where we live and they had some part exchange deals on them had a look round and have signed up for the deal only at the very start of the whole process so thought before money gets involved i would seek the collective wisdom of the forum on them are they any good or is it to good to be true!!
repeat the last 5 words over and over again...
P/ex generally - It can be a good way of dropping down a stamp duty threshold if you can get the vendor to drop the price of the house your buying - if you do the same then the 'difference' will be the same. Vendor gets his price, you avoid some tax.
I would guess that house builders are desperate for cash at the moment. The developer may need to sell units to fund the rest of the development so that may put you, the buyer in a strong position to get a good deal.
It appears to work well for many people. My parents were given the full asking price for their house but I guess they paid the full asking price on the new build, but it made it very straight-forward.
My sceptical view is that you pay for the convenience on these - i.e. they'll give you rather less for your house than it's worth on the market or you could get the house your buying for less if you weren't trading in a house; they still have to sell your house and that takes time, money and effort. Like buying cars really!
I've done it and it worked out very well, the builders gave me current value for my old house and I didn't have to put up with time wasters and tyre kickers.
We part-exchanged our old one and current one. Neither were new. Just happened the one we wanted (current) had been taken in part-ex for a new one by the building company and in turn they took ours in part-ex for this one. They do it to lower the amount of capital tied-up. We saved a fair bit on valuations, solicitors fees, survey. The down side is you get less than what you may get on the open market I think we got around £5k less than we could have.
I did it aftery house was up for sale for over 12 months- got the full asking price but didn't get anything knocked off the new one- without part exchange you'd obv get a better deal on the new one but if you're having probs shifting the old one then it works a treat.
have looked into this also were offering 23k less than the home report value. also if we had sold ourselves they would give us 8k towards deposit and flooring and extras. also beware as they sell your house and if it sells before your new home is built youll have to rent.same goes for shared equity you pay 80% of price then after 10 years you have to pay them the 20% left which is 20% of the homes value in 10 years time.
If you have got a fairly standard property to PX its worth it at the moment. Don't expect "full market price" that estate agents have dreamed up but you should be able to get a good price based on surveyor valuations.
Shouldn't stop you getting discounts/extras on your new place either if you are a good negotiator.
The developer shouldn't throw you on to the street if they sell your property before the new one is ready. They will market it and may agree a sale but will normally complete on the day your new plot completes.If you are worried ask the question and get it in the contract if it isn't clear.
You may sell your own place for more but then you will pick up the costs. Most people seem to get a good deal, the builder is taking some of the market risk and it gives certainty that you will have sold.
Just push the sales people as far as possible - you will get a better deal than first offered!
shared equity you pay 80% of price then after 10 years you have to pay them the 20% left which is 20% of the homes value in 10 years time.
Fair enough.
[i]if it sells before your new home is built you'll have to rent.[/i]
You'd have to be fresh off the boat to fall for that.
Thanks for the advice everyone so seam like a good deal if you push hard on the price and yes we have been on the market awhile and with a new baby(6mnths old) we need to move cause this place just isn't big enough
Bear in mind newbuilds are overpriced (usualy), hence why they can offer "£20,000 cashback", they just tell the bank its worth £20k more than it realisticaly ever was.
So by the same token are probably buying your house at asking price, and selling you a newbuild at an unrealisticaly high price to cover the ammount they would have haggled off you.
Thisisnotaspoon is right - new houses do have premium price BUT they are new, have warranties and are build to the latest building reg's and insulation (sound and thermal) levels etc.
All mortgage valuers compare new with local second hand properties so they won't be sold at inflated levels.
The downside is a very small plot, a garage big enough for a mini (if you are lucky) and more toilets to clean than you need (We looked at a 4 be with 4 toilets?).
Fatsimon mk2 - now is the time to haggle. Homebuilders are fairly desperate to sell new plots. If you can get a mortgage!
ian-r mortgage not a prob already been offered a mortgage with the halifax up to and in excess of what the house is being offered at the moment