A guide to part exchanging your home & alternative options
Part-exchange services can be really useful if you’re wanting to sell a house quickly in exchange for a house you’d prefer.
People part-exchange their cars all the time. It saves them the hassle and cost of selling privately or via an agent. You can do exactly the same thing with houses. If you’d like to buy a new property and have an older property to sell, you could consider a part-exchange program. There are many property developers these days that offer this option.
Part-exchange programs are said to help people buy and sell property with minimal hassle because you don’t have to put your property on the market yourself or wait around for a buyer. The property developer is assigned the task of doing the leg work for you. There are, however, a number of factors to consider when deciding if part-exchange is right for you.
Using a traditional estate agent can be a long drawn-out and expensive process, plus there’s no guarantee that a buyer won’t pull out at the last minute, breaking the chain. However, there are other alternatives to part-exchange, such as quick cash buyers.
Buying a part-exchange property means trading in your current property and getting a part-payment towards a new build property. There are a number of property developers offering this option. They will commission two local estate agents to come and value your property – this will be a selling price and will be around 65% of the market value. Once you accept the offer, a survey will be carried out and, unless any serious issues are revealed, you could complete within around 4 weeks.
Part-exchange schemes are just like any other property transaction, except that the property developer is your buyer. To be considered for a new-build property, your house must be in a decent condition and worth 65-70% of the new property’s market value. Two independent estate agents will visit your property to value it. They will decide if the property value is enough for it to be sold on.
Most developers state that they will offer you a fair price and many vendors are happy to accept because it means a hassle-free sale and a brand-new home. However, it is worth noting that you’ll be limited as to which new-build property you get. They usually have fewer rooms or smaller gardens. There’s no guarantee that your property will be accepted which is why using a quick cash buyer could be an alternative to consider. We will buy any property, in any condition and will pay up to 80% of the market value of the property. You can then go on to buy any property you like or just use the cash for an alternative project. The choice is yours.
The steps to part exchanging are fairly simple:
There are different sets of rules for each developer, however we've put togheter a list of a few that you usually will be subject to:
Keep in mind that when you part exchange you won't be offered full market value for your property. It also only typically suits people who are wanting to move up the property ladder, if you are downsizing then you may want to look into alternative options to sell your home as a lot of developers won't accomodate this.
✔ No estate agent fees
✖ Sometimes difficult to secure a mortgage against a new build as they can be considered as depreciating in value fairly quickly
✔ Avoid a property chain
✖ You are limited as to which property you can choose – usually smaller or with less of an outdoor space
✔ Get a brand new property
✖ No guarantees that your current property will be accepted
✔ Minimal stress process
|✖ Building might not be completed in the timescale specified, by which time your current property may have been sold
✔ Certain perks such as custom fixtures and fittings or being exempt from stamp duty
|✖ You won’t get near market value for your property
||✖ Developer might not be part of The Consumer Code for New Homes, approved by the Chartered Trading Standards Institute|
Although part-exchange schemes offer a seemingly stress-free property sale and a brand new home, there are other options. If you want to sell your property quickly and aren’t necessarily interested in your onward property being a new build then a quick cash buyer, like us, could be the right choice.
We’ll buy any property, in any condition and will offer up to 80% of the market value, subject to checks. You’ll receive a cash sum that you can use towards a new home or to fund a totally different project. The choice is yours, but all fees are included in the service so what we offer you is what you’ll receive. Plus, we can help you move if you need that additional support. Get a hassle-free service so you can get back to the important stuff. Get in touch with a member of our team today on 0800 024 8444
Do developers pay stamp duty on part exchange?
If the developer plans to sell on the part exchanged property then they do not need to pay stamp duty.
Can you do a part exchange with a help to buy?
No, the help to buy scheme is only available to first time buyers who don't own another property and in order to part exchange you need to own the property to do so.
Is part exchanging your home a good idea?
If you are looking for a quick move and want to buy a new build then part exchanging does make sense as there's no getting caught in a property chain.
Is part exchanging your home worth it?
It depends, for ease and speed then yes, however developers will typically offer you lower than what your property is worth or you'll end up paying over the odds for your new one in order to cover the costs they incur by having to deal with your property. If you are willing to part with some of your equity then it could be a worth while option to explore.
How much can you get from our we buy any house service?
Complete a few details to see if your property qualifies and get a cash offer – remember we buy any property, in any condition, in any location!
5 simple steps to having your property sold!
Our quick (but thorough) 5 step sale process means we can buy your house fast and at a great price
Check to see if your property is eligible check now
Receive an offerfrom us within 24 hours
We’ll visit your property & formalise our offer
We’ll instruct solicitors and pay all fees
Exchange contracts & complete as usual
Why choose us as your cash house buyers?
We’re one of the leading we buy any house UK companies for residential/commercial property and land in England and Wales. We buy using our own cash house buying facility meaning we can offer the best prices in our industry and complete the sale quicker than anyone else.
|Your options||Average sale length||Typical cost to you|
|The Property Buying Company||2-3 weeks||£0.00|
|Other House Buying Companies||2-10 weeks||£1000|
|Property Auction||6-10 weeks||£2500-£5000|
|Online Estate Agents||16-52 weeks||£1000(upfront)-£5000|
|Estate Agents||16-52 weeks||£5000|
Unlike most of the other options available to you, we are not a broker or middle man, meaning you skip the fees and get a sale quickly and easily.
The Property Buying Company is registered with the Property Ombudsman and is a member of the National Association of Property Buyers
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the last 3 years
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