we are looking at a new house and there is a possibility that they will part ex our house, is there anything we should be aware of when it comes to contracts etc. any pitfalls or such like? we feel the money they give us as a part ex will be relatively good for the current market and we know how far we can stretch to get the new house. if they offer us a low value then we will give them a lower value, we know how far we can go, but will the house company try to get us to sign in to something we dont want to be signed in to?
when taking a p/ex i usually get 3 valuations and take an average
however i use 2 local agents and one commercial valuer as the commercial valuers always value lower and this brings the average down
i then then offer 95% of the avaerage valuation fee
ask the developer which agents he is using for his valuations
forgot to say, if its a larger developer you are buying from try to find out when theri year end (or half year) is as your negotiating powers increase the closer your completion is to that date - especially at the moment
it's quite a small developer as far as i can tell, the house is on a development of 9 houses and they;ve got no others in the area (that i know of) and only 3 on their website in total.
They are only getting one valuer in (a local estate agent) who we actually had round to value the house last year.
The estate agent said last night, if it were going on to the open market, then they would put it on at £109,950 and advise us to accept anything above £105,000. does that mean the house company will offer us 95% of 109,950 or of 105,000?
It would be 95% of the valuation, not 95% of a potential offer. (So 95% of £109,950).
we ask the valuers to give prices to sell the property;
1. immediately
2. within 12 weeks
we use the price for selling within 12 weeks so i suspect that it would be 95% of somewhere between 105,000 & 109,950
being a small developer their year end probably is nt as important as it is for the plc's but sales are still hard to come by (in this instance this applies to you and the developer) so i am sure you can negotiate something with them
Make sure you're happy with the independence of the valuer/valuation.
Not trying to suggest your developer is dodgy, but this would be a very easy trick to pull with only one valuation. It's highly possible that the agent could even approach the developer to do a 'deal' (based on rights to sell on your property and fee rates).
Gooner's suggestion of using 3 valuations makes it more difficult to manipulate the figures.
Do developers alow downsizing? Say our house valuead at 240k and the ones were looking at are 200k?
true, but tbh i'm pretty certain that the other agents in the area would say much the same. i've spoken to one over the phone and they suggested 110,000 as last year next door went for 117,000 and of course take in to account the drop in the market blah blah blah.
what happens if we accept the offer the developer makes? what sort of contract do we enter into? with regards to the part ex, not the buying of their house (i understand that bit)
catnash, i doubt it, they wouldnt net any money on it would they?
That's what I was suspecting.