Are you on the lookout to move to a new home? Do you need to secure it quickly (before other buyers swoop in), but have your own home to sell first?
It’s frustrating not to be able to move up and down the housing ladder easily - especially once you family needs have changed and your current home is less suitable than it was in the past.
Selling your home fast to Yes Homebuyers could be the solution. We can make you an offer and buy your home from you directly. This effectively makes you a "cash buyer" as you go on to look at our next purchase.
This is effectively a part exchange. It can remove a lot of the headaches and hassle associated with the property buying and selling process.
Property Part Exchange: What is the Definition?
Let’s explain what part exchange means and learn about the different scenarios you can find yourself in when trading in your old property against the value of a new house or exchanging your home with different circumstances attached.
Property part exchange means selling your home quickly to a person or a building company and in exchange, get the chance to move to a new property by paying the difference in price. (Or receiving the difference in price if the one you're selling is more expensive than the one you're buying - as is common for downsizers).
So, in essence, your original house becomes part of the payment. Property part exchange is like a chain-free property transaction because there are no other parties involved who are going to change their mind, or fail to get a mortgage, or find another house they prefer.
Types of Property Exchange:
- Purchase a brand new house from a homebuilding company. As mentioned above, the process involves approaching a company and depending on your eligibility, you trade in your house to get a newly built house, which is larger and about ⅓ higher in value than the one you sell. This is one of the most common house part-exchange procedures. However, it’s not a good idea to keep your property empty for too long.
- Buy a home from a private owner. It’s slightly rarer but you can be lucky and part-exchange your property for a dream home in a desired location by finding a counterpart house hunter who has reciprocal relocation needs. The part-exchange element in such transaction could be due to upsizing/downsizing or simply because one of the property is located in a more expensive region. In such occasions, Yes Homebuyers can buy in cash too.
- Downsize in a property developer’s property. It’s not unpopular for property developers to attract a fair share of retirees with an equity release offer when downsizing into one of their purposefully built properties - usually, a functional and energy-efficient flat. However, downsizing is outdated and rightsizing is the right approach.
- Move to a smaller home privately. Naturally, when one party upsizes, the other one downsizes. So, if you’re selling your large family home in exchange for a smaller one, you could be getting a nice lump sum of money on top, unless you’re moving to a much more expensive area than your original location.
- House swap within the family. In this case, the part-exchange aspect and any monetary transactions are usually missing because two properties are exchanged by close relatives. For instance, the parents pass on the large family home to their son and his new family, and move into the latter’s smaller property. Of course, a family house swap has it's advantages but there are also some considerations you need to carefully think about.
How Does the Part Exchange Process Work?
Here, we’ll focus on the process of buying a brand new home from a house-building company against the value of your home, as the procedure may not be always the appropriate choice for you.
- Criteria. First and foremost, you’ll need to find out whether your property is a good fit to enter into a part-exchange scheme. Each developer has their own criteria, such as the house has to be in good state of repair so they can more easily rent it out or sell it afterwards. For us, we buy any house - meaning even if your home is in poor condition (or if it has other issues) we'll be happy and able to purchase it from you.
- Survey/Valuation. Once you get in touch with the building company about part-exchanging your house for a new one in the property development of your choice, you can expect an independent surveyor to come and evaluate your home, first.
- Receive the offer. Then, soon after, the developer will make an offer to you. This will usually be below the market value. For examples about how much we offer for properties, have a look here: How much do we offer?
Why Part Exchange May be the Best Option for You
If you are in a rush to sell your old house quickly and buy a new property for whatever reason, part exchange can be the fast solution you’re looking for. Below, we list the pros of part-exchanging your home for a brand new house.
- Quicker. You save time by not having to deal with putting your house on the market.
- No viewings. You won’t have to put up with a string of prospective buyers viewing your property.
- Less stress. Part exchange involves less stress as it is a quick, chain-free transaction.
- Guaranteed. Once approved, you can count on a guaranteed sale without any “change-of-heart” issues.
- Easy move. Some developers provide removals assistance and offer you plenty of time to vacate your old home.
- No fees. You don’t pay any estate agency fees.
- New-build benefits. If you're purchasing a brand new home you can usually expect to be free of any maintenance or refurbishment needs for years.
What About The Drawbacks of Property Part Exchange?
Well, part-exchanging your home to buy a new-build is not suitable for everyone. There are also some disadvantages to buying a new-build that you need to consider before deciding to go ahead.
- New-build choice. You’ll have to choose from a limited list of available houses;
- New-build plot sizes. New residential buildings usually come with small gardens that could use a revamp, consider new plants such as hedging and garden trees.
- Smaller rooms. The increased number of rooms you’ll be getting is often at the expense of their size.
- May be a flat. If you are downsizing, you’re likely to be moving into a new development of flats.
- Lower sale price. You may be saving money by not paying estate agency fees but you’ll be selling your old home for less than its full value.
Additional Part Exchange Considerations
Now that you understand the part-exchange process, you still need to get prepared by planning out carefully every aspect of your house move before agreeing to entering into an exchange scheme with a developer.
For instance, you should enquire about whose responsibility it is to pay the stamp duty. It is not unusual for the property developer to cover this tax. Also, you can try to negotiate a deal with the company either about the price of your new home or the value of your old property, especially if the transaction is taking place during a slow time of the year for them (for example around the Christmas period) or just before their financial year-end (usually around March).
To use external legal advice aside what the builder/seller has provided is absolutely mandatory not to mention that you should always compare your conveyancing quotes. To buy a newly-built abode comes with its own legal specifics, so leaving the process of conveyancing in the hands of professionals makes sense.
Don’t forget to ask about the type of fittings and finishes your new home is coming with. As part of the deal, you may be able to move into a fully carpeted house with already fitted appliances, for example. Still, for any other handyman jobs, associated with settling into a newly built property, you’ll have to make provisions yourself.
Last but not least, try to mutually agree on a convenient time frame of moving out of your old house. After all, the idea behind part exchange might be a fast property transaction but this doesn’t mean that the process should involve a lot of stress.
If the new-build company you're buying from don't offer their own part-exchange program - or if you're buying an ordinary home rather than a new-build, Yes Homebuyers can step in. The way our service works basically means you can part-exchange your home anywhere, even if the seller or builder themselves don't want to buy it from you. It's certainly the quickest way to sell your home and buy a new one.
If you'd like to get in touch, hit one of those big blue "Get An Offer" buttons, enter your details, and we'll be in touch shortly to explore options and see if we may be able to help. (It's totally free, and there's no obligation).
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