Part Exchange House - Pro's, Con's & How It Works

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.

Quick Page Navigation

1. What does part exchange mean?
2. How does part exchanging your home work?
3. Who can part exchange?
4. Is part exchanging a good idea?
5. Part exchanging vs cash buyers
6. Part exchanging FAQs

What Does Part-Exchange On A House Mean?

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.

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How Does Part Exchanging Your Home Work?

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:

1. Get in touch with a developer that offer this service
2. Choose a new home that suits your requirements
3. The developer will then arrange for independent valuations to take place on your property
4. Once they have this information, they'll make you an offer
5. Once accepted your home will be purchased, usually within 8-10 weeks
6. You're ready to move into your new home

Who Can Part Exchange?

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:

• You must own your home
• Your property can not be worth more than the one you are looking to purchase
• The property you are trying to exchange should be worth around 60-70% of the asking price of the property you are trying to buy
• The location of your property will be a deciding factor
• They may also reject the house if it is in a bad condition
• If your home is non standard construction or has a flat roof it may be rejected
• 
  

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.

Is Part Exchanging A Good Idea? The Pros & Cons

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Part Exchanging vs Cash Buyers

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 The Property Buying Company, 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

Part Exchanging FAQs

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.